Terrane Metals Corp. (TRX.V) - $0.36

We have been following Terrane very closely starting August of last year. Since then, the Company has had a steady stream of really good news, but the stock has been trading in a wide trading range, responding very little to the progress occurring at two of its main projects: Mt. Milligan and Berg.

Terrane has just come out with its first NI 43-101 compliant resource estimate for its Berg project. (To date, we haven’t focused on the Berg project, considering it only as an added bonus to the value of Mt. Milligan) Terrane used historical data and additional drilling to estimate the size of the deposit: 2.5 billion pounds copper, 300 million pounds molybdenum and 25 million ounces silver in the measured and indicated category. The in-situ value of underground resources is over $20 billion at current market prices (excluding inferred resources). In fact, this makes the Berg project bigger than the more advanced Mt. Milligan project.

We were pleasantly surprised to see higher molybdenum concentrations making Berg as much of a molybdenum deposit as it is a copper deposit. Molybdenum is in high demand and the price of the metal has been very steady (now at $33/lb) due to the infrastructure boom in many developing countries.

Good grades of molybdenum at Berg make the project much more valuable in the eyes of bigger mining companies and potential partners. As we previously mentioned, Imperial Metals’ mine is located within close proximity to Berg, and is expected to run out of ore in the next couple of years, making Imperial a logical partner.

Berg’s Resources at today’s market prices:

In 2008, Terrane will continue to advance the Berg deposit with a 10,000 meter drilling program designed to expand the resource and investigate the higher-grade zones of molybdenum and silver discovered within the deposit. We continue to believe that patience on Terrane will pay off.

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