Terrain Minerals Limited Stock Market Press Releases and Company Profile
Terrain Minerals Limited (ASX:TMX) Quarterly Activities Report For June 2009
Terrain Minerals Limited (ASX:TMX) Quarterly Activities Report For June 2009

Perth, July 27, 2009 AEST (ABN Newswire) - Terrain Minerals Limited (ASX:TMX) Quarterly Activities Report For June 2009 highlights include: A placement and rights issue, supported by a substantial Singapore based investment group, raised A$1.36m. The hostile, unsolicited, off market, all script bid for TMX by Iron Mountain Ltd (IRM) was defeated. Preliminary mining studies on the Celtic and Wonder North deposits at Bundarra and the Coogee deposit at East Kambalda have outlined open pit mine designs containing 1,039,200t @ 2.51g/t gold (83,126 oz)

At the EGM on 25 May 2009 shareholders approved two resolutions: A placement of ~17 million shares to raise ~A$806,000. A standby Subscription Agreement with Fortrend Securities Pty Ltd to provide a A$5 million funding facility to be drawn down at TMX's discretion. TMX has the right but not the obligation to use the facility at any time over the next three years.

On 19 June 2009 TMX also completed a 1 for 6 non-renounceable rights issue raising ~A$554,000. The rights issue and the placement together successfully raised a total of A$1.36 million. Both capital raisings were supported by Singapore based investment group, Grande Pacific Ltd; which has now become one of TMX's largest shareholders with 15.09% of the shares on issue.

The hostile, unsolicited, off market, all script takeover bid announced by IRM on 10 March 2009 closed on 26 June 2009 having attracted only 18,090,043 acceptances. Of the total acceptances, 17,464,682 shares came from UOG Ltd, a company associated with IRM and sharing common directors. Over the course of the bid UOG did not participate in any of the capital raisings; as a result the UOG/IRM equity in TMX has been reduced from 19.73% to 15.43%.

BUNDARRA PROJECT

Pit Optimisation studies and preliminary open pit mine plans have been completed over the Celtic and Wonder North deposits.

At a 1g/t gold cut off and a price of A$1200 per oz, the preliminary open pit designs contain:
Deposit   Preliminary Pit Design (recovered oz of gold)Celtic    240,000t @ 2.12g/t gold (16,200 oz of gold)Wonder N. 697,200t @ 2.45g/t gold (55,326 oz of gold)TOTAL     937,200t @ 2.37g/t gold (71,526 oz of gold)
The pit designs indicate potential operating, undiscounted cash surplus in excess of A$10.0m for the Wonder North deposit and ~A$4.0m for the Celtic deposit.

The preliminary pit designs are currently being reviewed and the open pit inventory is expected to increase following pit optimisation and mine studies currently underway on the Great Western deposit.

The mining studies have also highlighted the potential to extend mine developments underground at the Wonder North, Great Western and Black Cat deposits. Further mine studies are planned.

Applications for statutory approvals to mine the Celtic and Wonder North deposits will be lodged with the WA Department of Mines and petroleum during the September quarter.

Reports have now been received relating to the Aboriginal Heritage Survey undertaken in the previous quarter, over a number of exploration target areas. The majority of the areas have been cleared for further work, but additional archeological surveys will be required over some restricted areas.

EAST KAMBALDA PROJECT

A pit optimisation study and preliminary pit design has been completed on the Coogee gold deposit. The pit design contains 102,000t @ 3.82g/t gold, (11,600 recoverable oz) (Fig 2). At A$1200 per oz the pit design indicates potential operating, undiscounted cash surplus of A$4.0m.

Further mine studies are in progress, but priority is being given to developments at Bundarra. The option of selling the deposit is still under consideration.

At the Aztec Dome nickel prospect planning is underway to complete the IP/EM geophysical survey over the entire dome.

DODGERS WELL PROJECT

The previous exploration data is being validated ahead of integration with geological mapping and sampling data collected by Terrain. All the data will then be accurately plotted to assist with planning of proposed drilling programs.

EXPENDITURE

Exploration expenditure in the June quarter amounted to A$114,000. Cash reserves at 30 June were A$1,311,000, plus bonds of A$334,000; a total of A$1,665,000.

Anticipated exploration expenditure in the September quarter amounts to A$300,000.

Further information regarding Terrain's projects and exploration programs can be found on the Company's website;

www.terrainminerals.com.au.

For the complete Terrain Minerals Quarterly Activities Report for June 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/61119-ASX-TMX-454128.pdf

Contact

Keith Wells
Managing Director
Terrain Minerals Ltd
Tel: +61-8-9481-2455
terrain@terrainminerals.com.au



ABN Newswire
ABN Newswire This Page Viewed:  (Last 7 Days: 9) (Last 30 Days: 34) (Since Published: 8183)