It's not ours but at least its SOMETHING from Chile
Thursday May 11, 1:47 pm Eastern Time
Company Press Release
Noranda Encounters Significant Mineralization on Metallica Resources' El Morro Copper-Gold Project in Chile
DENVER--(BUSINESS WIRE)--May 11, 2000--Metallica Resources Inc. (TSE: MR - news; Nasdaq OTCBB: METLF - news) reports that Noranda Inc. has intersected a 70-meter chalcocite-enriched zone grading 1.15% copper and 0.35 grams per tonne gold during its drilling program on Metallica's El Morro project in north-central Chile.
This hole was drilled in the La Fortuna area as part of Noranda's recently completed 4,300-meter, 16-hole core drilling program. Noranda's agreement with Metallica called for it to drill 2,500 meters prior to September 14, 2000. Noranda has indicated that it intends a follow-up drilling program for the El Morro project during the next field season.
In the El Morro area, Noranda drilled 11 holes totaling 2,950 meters as a follow-up to Metallica's drilling in March 1999, where Metallica intersected 192 meters grading 0.77% copper and 0.29 grams per tonne gold. While Noranda's drilling did not intercept the grades or widths of Metallica's discovery hole, its drilling did show persistent secondary copper mineralization grading in the 0.2% to 0.5% range over widths ranging from 75 to 200 meters. Noranda reports that the drilling intersected no intrusive porphyritic units, only rocks considered to be wall rocks to the porphyry system.
In the La Fortuna area, Noranda drilled 1,150 meters in four holes. In addition to the hole that intersected the 70 meters grading 1.15% copper and 0.35 grams of gold, the remaining three holes averaged 0.48% copper within chalcocite-enriched zones averaging nearly 58 meters in width. The remaining hole was drilled in a portion of the La Fortuna area known as the Camp Zone. This 200-meter hole intersected local, uneconomic, copper and gold grades. The drilling in the La Fortuna area has intersected varying amounts of veining and disseminated mineralization within multiple phases of porphyritic intrusions. The target is a copper-gold porphyry system.
Bondar Clegg of Coquimbo, Chile, using Gannet certified standards, completed the analytical work on the project.
Further interpretation of data from this season's work is still in the process of being compiled. Work in 1998 by Metallica indicated a mineralized porphyry system over an area of four square kilometers with coincident geochemical and geophysical anomalies. Within this large porphyry system are the El Morro and La Fortuna areas.
Noranda has an option to earn a 70% interest in both the 100%-owned El Morro and La Fortuna properties. Metallica has an option to acquire 100% interest in the La Fortuna property from BHP Minerals by making payments of $1.69 million over a four-year period.
Terms of its agreement with Metallica call for Noranda to make exploration expenditures of at least US$1 million before September 14, 2001. In addition to the US$1 million exploration commitment, cash payments of US$300,000 will be made to Metallica by September 14, 2000, including US$200,000 that has already been paid. Noranda is also required to complete minimum exploration expenditures of US$3 million per year over the three years commencing September 14, 2001, and make a final cash payment of US$10 million to Metallica on or before September 2005. Noranda is required to complete, at its sole expense, a feasibility study on the project by September 2007.
In addition to the above-described cash payments and minimum work requirements, Noranda must purchase, by way of a private placement, US$1 million in Metallica common shares by giving notice on or before September 14, 2001, to keep the option in good standing. These shares are to be priced at 1.5 times the 60-day average market price prior to the share purchase.
Mr. Ritch Hall, Metallica's CEO, stated: ``We are excited by the results of this season's drilling program on the El Morro project, as it reinforces the confidence that we have in this large mineralized system. We are also extremely happy with the effort put forth by Noranda and its technical staff on the project. The amount of drilling it completed far exceeded the requirements of the contract. This is a large, complex mineralized system and it will take both time and talent to fully understand it. We are anxious to review all of Noranda's data on the project, once it is compiled, and equally anxious for another round of drilling next season.''
Metallica is a Canadian precious metals exploration and development company focused on the Americas. Metallica is well funded and has 27.1 million common shares outstanding. Visit Metallica's web site at www.metal-res.com and send e-mail to metallica@metal-res.com.
The statements in this press release that are not historical facts contain forward-looking information. These statements address future events involving known and unknown risks and uncertainties that could cause actual results to vary materially from projected results. These risks and uncertainties include those described in Metallica's form 20-F.
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Contact:
Metallica Resources Inc., Denver
Ritch Hall, President and CEO, 303/796-0229, ext. 304 |
