Metallica, Noranda release El Morro data

Denver — Metallica Resources (MR-T) and Noranda (NOR-T) have released results from two additional holes that continue to show significant mineralization at the El Morro copper-gold project in northern Chile.

In late April, the partners produced drill results from six holes to further outline a potentially economic blanket of secondary copper mineralization.

In the La Fortuna zone, hole 12A cut 46 metres of enriched copper grading 3.28% copper and 0.21 gram gold at a depth of 62 metres. Several other holes showed long intervals of sulphide mineralization.

Two hundred metres to the north of 12A, hole 26 intercepted significant assay values, including 22 metres of 1% copper in the enriched zone. Below that zone, primary sulphide mineralization was only marginally mineralized, grading 0.15% copper and 0.16 gram gold over the next 130 metres. Below that, stronger mineralization resumed, averaging 0.86% copper and 0.77 gram gold for the next 415 metres. The hole bottomed at a depth of 651 metres, demonstrating the potential depth of the project.

Hole 25 was not quite so robust, though it returned 40 metres of enriched mineralization of 0.8% copper and 0.63 gram gold per tonne, starting at a depth of 178 metres. Primary mineralization averaged 0.39% copper and 0.54 gram gold per tonne over 168 metres.

To date, El Morro has undergone 6,685 metres of reverse-circulation drilling and 21,542 metres of diamond drilling. Metallica plans to calculate a resource estimate on the La Fortuna zone by the third quarter. Noranda will use the next three months to begin a new drilling program, when the weather permits.

Noranda is earning a 70% interest in the 16,400-ha property by spending US$10 million on exploration and making a one-time cash payment of US$10 million by 2005. The agreement also requires Noranda to subscribe to a US$1-million private placement in Metallica shares before Sept. 14.