Terrane made it through another milestone when it recently received a Mines Act Permit from the Province of British Columbia for its Mt. Milligan Copper-Gold Project. Upon the upcoming receipt of timber cutting and fisheries approvals (expected in Q4 2009), the newly received permit will allow for construction and operations activities at the mine site to begin.

Also in the fourth quarter of this year, the Company expects to release an updated feasibility study. This study is likely to bring down expected capital expenditures at the project. At that point, Goldcorp will have to decide whether it wants to exercise control over the project and acquire around 60%. Construction could begin in the second quarter of 2010, with production commencing by the end of 2012.

We remain positive on Terrane. Project economics are stellar at current gold and copper prices and remain good even if both metals fall considerably from current levels. Goldcorp is very supportive of Mt. Milligan and is likely to be very interested in bringing it into production at current prices for gold and copper. We will likely see a decision from Goldcorp on how it intends to proceed in early 2010.

Terrane is very inexpensive. The stock remains one of our long term core holdings.