TORONTO (miningweekly.com) – Vancouver-based Terrane Metals has awarded the first construction contract for its Mount Milligan copper/gold project, in British Columbia, kicking off the first phase of a 30-month construction programme, the firm announced on Thursday.

A road upgrade contract was awarded to Duz Cho Construction, for 26 km of upgraded all-weather forest service access road which will connect the project site with the Germansen North Road, a key transportation corridor in the region.

The upgraded road also will link in with the government-funded Mackenzie Connector project to provide all-weather road access between the communities of Mackenzie and Fort St James.

The awarding of the first contract marks an “important milestone” for the company, CEO Robert Pease commented.

Terrane said on May 20 that it had finalised contractual terms for the procurement of long-lead-time items for the project, with orders placed for the process plant and power supply equipment representing around 12% of the total initial capital cost.

Mount Milligan will be a conventional truck-and-shovel openpit mine with a 60 000-t/d copper flotation process plant.

The first six years of the 22-year mine plan are designed to accelerate the extraction of near-surface and higher-grade gold reserves with production forecast to average 262 100 oz/y at a cash cost, net of a copper credit, of a negative $8/oz.

Canada's second-biggest gold-miner, Goldcorp, owns 60% of Terrane.

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