TTM receives preliminary economic assessment for Chu Molybdenum project indicating a net present value of $1.04 billion



    
    TTM RECEIVES PRELIMINARY ECONOMIC ASSESSMENT FOR CHU MOLYBDENUM PROJECT
    INDICATING A BASE CASE(US$20 per lb Mo) NET PRESENT VALUE OF
    $1,039 MILLION USING AN IN-PIT RE

SOURCE ESTIMATE OF INDICATED RE

SOURCE AT 388.5 MILLION TONNES GRADING 0.052% Mo AND INFERRED RE

SOURCE AT 284.1 MILLION TONNES GRADING 0.048% Mo AT A 0.017% Mo CUTOFF TSX-V Symbol: TTQ Frankfurt Stock Exchange Symbol: T2U US Clearing Symbol: TTMRF Issued and Outstanding 50,307,489 VANCOUVER, Sept. 3 /CNW/ - W. K. Crichy Clarke, President and CEO of TTM Resources Inc. ("TTM" or the "Company") announces that the Company has received an updated resource estimates from Giroux Consultants Inc., of Vancouver, B.C. for its 100% owned Chu Molybdenum Project 65 Km Southwest of Vanderhoof, British Columbia, Canada. It has also received a Preliminary Economic Assessment for the Project from Moose Mountain Technical Services of Calgary, Alberta. These estimates will be included in an updated NI 43-101 report under preparation and expected soon. PRELIMINARY ECONOMIC ASSESSMENT ------------------------------- This report identified the main critical economic factors for the CHU project as; the future price of molybdenum, the cost of capital equipment and the debt to equity ratio for the project. The following table shows the financial estimates with differing values for these variables based on a 60,000 tonne per day mining operation lasting 31 years. All prices are quoted in Canadian dollars except where noted. Table 1 ------- ------------------------------------------------------------------------- Molybdenum Low Case Base Case High Case Prices US$15 per lb US$20 per lb US$25 per lb -------------- ------------------ ------------------- ------------------- -------------- ------------------ ------------------- ------------------- Capital Equipment New Used New Used New Used -------------- ------------------ ------------------- ------------------- -------------- ------------------ ------------------- ------------------- NPV at 10% $Millions 116.2 514.7 1,039.7 1,438.2 2,126.9 2,525.3 -------------- ------------------ ------------------- ------------------- IRR 12.5% 27.7% 27.3% 47% 45.4% 77.5% -------------- ------------------ ------------------- ------------------- Payback years 8 4 5 3 3 2 -------------- ------------------ ------------------- ------------------- Assumes debt-equity project financing of 50%-50%. A 100% equity case will be available on the corporate website. Capital Equipment including working capital and 20% contingency factor is estimated at 1,250.0 million (new) and 750.0 million (used). The low case (US $15 per pound Mo) assumes US$20 per lb year one, US$18 per lb year two and US$15 to year 31. Metallurgical recoveries were assumed at 86% for the purposes of these evaluations. Current molybdenum sale prices are approximately $35 per pound. Recognizing the importance of capital costs to the project, the Company is in the process of sourcing, and negotiating for, used mining and milling equipment appropriate for the CHU Project. The production schedule used by Moose Mountain entails mining and milling of high grade ore in the initial production years with lower grade material stockpiled for milling at later dates. This allows for higher initial cash flow and a shorter pay back period. UPDATED RE

SOURCE ESTIMATE ------------------------- As set out in Table 2 & 3 below the updated geologic Resource estimate represents an increase of 17.3 million tonnes, 25.6 million lbs of molybdenum and a significant upgrade in indicated versus inferred tonnage over the previously published figures for the 0.04% cut-off category. The updated figures below are based on an additional 7,010.61 meters of drilling in 13 holes drilled during the months of Jan & Feb 2008. For the purpose of the Preliminary Economic Assessment Moose Mountain established an In-Pit resource based on an optimized pit shell for a guideline, then a preliminary pit was designed to incorporate the high wall ramp, smooth pit walls, and workable mining phases and finally, the resource estimate calculated within the designed ultimate pit and is summarized in Table 4 at various molybdenum cut-off grades. The Economics quoted in this press release are based on a 0.017% Mo cutoff. Assays for holes drilled after the updated estimate have been received and are available on the corporate website. Currently there are two drills operating on the CHU property engaged in resource expansion and resource category upgrading activities, and a third drill testing Geophysical anomalies identified last year. The third drill has completed 2 of a planned 20 hole program and results will be released upon receipt, review and tabulation. Table 2 CHU PROJECT - INDICATED RE

SOURCE ------------------------------------------------------------------------- Tonnes greater Grade greater than Cutoff than Cutoff ----------------------------- Mo Cutoff (%) (tonnes) Mo % Million lbs Mo ------------------------------------------------------------------------- 0.04 252,630,000 0.067 373.2 ------------------------------------------------------------------------- 0.05 179,010,000 0.077 303.9 ------------------------------------------------------------------------- 0.06 121,160,000 0.087 232.4 ------------------------------------------------------------------------- 0.07 87,720,000 0.095 183.8 ------------------------------------------------------------------------- 0.08 63,090,000 0.104 144.7 ------------------------------------------------------------------------- 0.09 42,110,000 0.113 104.9 ------------------------------------------------------------------------- 0.10 27,930,000 0.122 75.1 ------------------------------------------------------------------------- Table 3 CHU PROJECT - INFERRED RE

SOURCE ------------------------------------------------------------------------- Tonnes greater Grade greater than Cutoff than Cutoff ----------------------------- Mo Cutoff (%) (tonnes) Mo % Million lbs Mo ------------------------------------------------------------------------- 0.04 200,900,000 0.062 274.70 ------------------------------------------------------------------------- 0.05 127,160,000 0.072 201.90 ------------------------------------------------------------------------- 0.06 79,460,000 0.082 143.70 ------------------------------------------------------------------------- 0.07 51,290,000 0.091 102.90 ------------------------------------------------------------------------- 0.08 35,260,000 0.099 77.00 ------------------------------------------------------------------------- 0.09 23,500,000 0.106 54.90 ------------------------------------------------------------------------- 0.10 13,180,000 0.115 33.40 ------------------------------------------------------------------------- Table 4 CHU PROJECT - IN-PIT RE

SOURCES ------------------------------------------------------------------------- CUT- INDICATED RE

SOURCE INFERRED RE

SOURCE TOTAL RE

SOURCE OFF M-lbs M-lbs M-lbs Mo% M-tonnes Mo% Mo M-tonnes Mo% Mo M-tonnes Mo% Mo ------------------------------------------------------------------------- 0.017 388.5 0.052 441.3 284.1 0.047 297.1 672.6 0.050 738.3 0.021 356.0 0.054 427.5 264.3 0.050 288.6 620.3 0.052 716.2 0.040 226.5 0.068 339.3 150.6 0.063 208.2 377.0 0.066 547.4 0.060 110.9 0.088 214.5 61.3 0.084 113.1 172.2 0.086 327.6 ------------------------------------------------------------------------- NB. The preliminary assessment includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability Resource Criteria; The mineral resources mentioned above are defined in terms of the NI 43-101 regulations and their estimation was carried out using industry standard practices using ordinary kriging of blocks 20 x 20 x 10 m high. The mineral resources are undiluted and a total of 18 assays were capped at 0.43 % Mo. Indicated Mineral Resource estimates were produced using a search ellipse with dimensions equal to 1/2 the semivariogram range. A specific gravity based on 328 measurements of 2.69 was used for tonnage calculations. Assay results from 55 diamond drill holes totaling 28,457.16 meters was used. A total of 10,257 composited assay intersections made up the resource database. The Board of Directors and Advisors are very pleased with the result of these Independent estimates. The CHU project appears to exceed the financial criteria associated with a bulk mining operation under the sensitivities laid out in the Preliminary Economic Assessment. The deposit is located next to an all-weather road in the central Plateau region of British Columbia close to sources of power and skilled labour. Subject to the Conclusions and Recommendations in the upcoming NI 43-101 Report, the Company will proceed towards a Pre-Feasibility Study for the CHU Project. The Company currently has 50,307,489 shares outstanding and $8.5 million in working capital which does not include approximately $3.0 million in B.C. Mining Exploration Tax Credit. The Company has in place a comprehensive quality assurance/quality control program including standards, blanks and duplicate samples that form part of the sampling protocol. In addition the laboratory has its own quality assurance program. The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101. The technical information provided in this press release was reviewed by Warren Robb, P.Geo., and Jim Gray P.Eng of Moose Mountain Technical Services who are qualified persons for the purposes of NI 43-101. For further information visit the Company's web site at www.ttmresources.ca TTM RE

SOURCES INC. "Crichy Clarke" ------------------- W.K. Crichy Clarke President & CEO This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For further information:

For further information: Main, W.K. Crichy Clarke, President & CEO, Tom
Brady, (604) 685-5851, or Toll Free: (888) 685-5851, Fax: (604) 685-7349,
Website: www.ttmresources.ca, Email: ir@urg.ca; Europe, Small Cap Invest Ltd,
Alexander Friedrich, 49 (0) 69-24 24 93 49, 49 (0) 12 12 544 71 04 62, Email:
afriedrich@small-cap-invest.com

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