Noranda puts El Morro on hold

Vancouver – Noranda (NRD-T) has tabled a 2003 budget of only US$830,000 for Metallica Resources‘ (MR-T)El Morro copper-gold property in Chile.

The funds include a final US$500,000 payment to BHP Billiton (BHP-N) due in July 2003, US$170,000 for land holding costs and approximately US$85,000 in reclamation and camp expenses. The remaining US$75,000 is set for legal fees and labor costs.

“Metallica is disappointed in Noranda’s plans for 2003,” says Metallica’s President, Ritch Hall. “We strongly believe that the size and quality of the La Fortuna resource deserves an aggressive development program and that the El Morro area exploration targets should be pursued

By the beginning of Dec., Noranda had spent more than US$10 million on the promising project. The Joint Venture Agreement requires Noranda to have spent US$10 million by September 2005. The major is the project operator and can earn a 70% stake by paying Metallica US$10 million prior to September 2005.

“Until it has earned its interest in the project Noranda is obligated, at is sole expense, to maintain the property in good standing and meet the various requirements of the Joint Venture Agreement.” Adds Hall.

In Sept. Noranda tabled an inferred mineral resource for the La Fortuna area of the project at 465 million tonnes grading 0.61% copper and 0.50 grams gold per tonne, using a 0.4% copper cutoff grade.