News on El Morro: impressive intercepts of copper and gold. Stock doubled yesterday!! C$.58
Dan
Metallica releases Noranda's El Morro drilling results
Metallica Resources Inc MR
Shares issued 26,809,877 Mar 5 close $0.26
Mon 5 Mar 2001 News Release
Also Noranda Inc (NOR)
Mr. Ritch Hall reports
Noranda Chile S.A. has intersected 383 metres grading 0.72 per cent copper
and 0.54 gram of gold per tonne in hole DDHF-18, and 476 metres grading
0.61 per cent copper and 0.58 gram of gold in hole DDHF-19 at Metallica's
El Morro copper-gold project, located about 80 kilometres east of the city
of Vallenar in north-central Chile.
Mineralization in DDHF-19 persists throughout the entire length of the hole
with relatively consistent copper and gold grades. It is located
approximately 200 metres east of DDHF-18. These are the first two holes
drilled on the recently optioned Santa Julia concession, which is located
in the La Fortuna portion of the El Morro project. A summary of these two
diamond drill holes is as follows:
.......................
Drill hole DDHF-18 is located approximately 530 metres southwest of DDHF-4
and 160 metres north of DDHF-5. Both of these holes returned significant
results during the 2000 drilling campaign. As previously reported, DDHF-4
contains 154 metres grading 0.74 per cent copper and 0.35 gram per tonne of
gold, including a 70-metre-thick enriched zone that grades 1.15 per cent
copper and 0.35 gram of gold. Copper and gold mineralization in DDHF-4
begins at 150 metres in depth. Beginning at 30 metres, DDHF-5 contains 203
metres grading 0.51 per cent copper and 0.25 gram of gold, including a
58-metre enriched zone of 0.74 per cent copper and 0.14 gram per tonne of
gold.
Drill holes DDHF-18 and 19 are part of Noranda's 9,200-metre diamond
drilling program on the El Morro project, which has been in progress since
November, 2000. Noranda originally planned approximately 5,000 metres of
core drilling for its 2001 program at El Morro. Noranda is moving a third
core drill onto the property and anticipates completing about 25 more holes
before the end of the southern hemisphere field season in April or May.
Noranda's drilling on the El Morro project during this campaign has been
centred on the La Fortuna and El Negro portions of the property, whereas
last year's drilling program focused on the El Morro portion of the
property. Approximately 2,200 metres of the total amount drilled to date
have been in the El Negro area, which is located approximately 2.5
kilometres west of the La Fortuna area.
Analyses received from the El Negro area also show significant results,
particularly in molybdenum. Beginning at a depth of 46 metres, hole DDHN-2
returned 40 metres grading 0.37 per cent copper, 0.12 gram of gold per
tonne and 0.10 per cent molybdenum. Hole DDHN-4 contains 102 metres grading
0.66 per cent copper, 0.18 gram of gold and 0.08 per cent molybdenum.
Mineralization in hole DDHN-4 begins at 24 metres in depth.
All of the analyses received to date, along with the drill hole
co-ordinates, are appended. Bondar Clegg of Coquimbo, Chile, using Gannet
certified standards, has completed all of Noranda's analytical work on the
project to date. The analytical method used is geochemical analysis for the
copper and molybdenum values, and fire assay with an atomic absorption
finish for the gold values. The qualified person responsible for the design
and conduct of the work performed is Mike Knuckey, executive
vice-president, exploration and project development, for Noranda Inc.
Noranda is the operator and can earn a 70-per-cent interest in the El Morro
project by completing work commitments of $10-million (U.S.) and making a
cash payment to Metallica of $10-million prior to September, 2005. Terms of
the agreement also call for Noranda to purchase, by way of private
placement, $1-million (U.S.) in Metallica common stock by Sept. 14, 2001.
These shares are to be priced at 1.5 times the 60-day average market price
prior to the share purchase.
The El Morro portion of the property was staked in 1997 by Metallica and is
owned 100 per cent. Metallica has an option to acquire 100 per cent of the
La Fortuna and El Negro portions of the property by making payments to BHP
Minerals and other property owners totalling $3.0-million over the next
three years. Noranda is currently making these payments as part of its work
commitment.
Mr. Ritch Hall, Metallica's chief executive officer stated: "We are
obviously delighted with the results Noranda has been receiving from this
season's drilling program and are extremely pleased with the work that they
have been doing on the project. Noranda brings a wealth of experience and
resources to this exciting project. They are a very professional
organization and have been a great joint venture partner."
WARNING: The company relies upon litigation protection for
"forward-looking" statements. |
