Metallica Resources Reports That Noranda Encounters 46
Meters of 3.28% Copper At the El Morro Copper-Gold Project
in Chile
DENVER--(BUSINESS WIRE)--April 18, 2001--Metallica
Resources Inc. (TSE:MR - news; OTCBB:METLF - news) reports
that Noranda Chile S.A. has intersected a secondary
enriched copper interval of 46 meters grading 3.28 percent
copper and 0.21 grams of gold per tonne in hole DDHF-12A at
Metallica's El Morro copper-gold project, located about 80
kilometers east of the city of Vallenar in north central
Chile.
Mineralization in DDHF-12A persists throughout the entire
456 meters of the hole with an overall average grade of
0.99 percent copper and 0.45 grams of gold per tonne.
Hole DDHF-12A is located in the La Fortuna portion of the
El Morro project. A summary of drill hole DDHF -12A is as
follows:
-0-
DDHF-12A
Interval Length Copper Gold
(meters) (meters) (%) (g/t)
0 to 62 62 0.98 0.20 Oxide Zone
62 to 108 46 3.28 0.21 Enriched Zone
108 to 456 348 0.69 0.52 Primary Zone
0 to 456 456 0.99 0.45 Entire Hole
Drill hole DDHF-12A is located approximately 200 meters
southeast of DDHF-18 and 200 meters southwest of DDHF-19.
As previously reported, DDHF-18 contains 383 meters of
continuous mineralization grading 0.72 percent copper and
0.54 grams of gold per tonne and DDHF -19 contains 476
meters of continuous mineralization that grades 0.61
percent copper and 0.58 grams of gold per tonne.
Drill hole DDHF-24, located 400 meters northeast of DDHF-
12A also had very significant values:
DDHF-24
Interval Length Copper Gold
(meters) (meters) (%) (g/t)
14 to 94 80 0.27 0.40 Oxide Zone
94 to 388 294 0.55 0.82 Primary Zone
388 to 488 100 0.63 1.11 Primary Zone
488 to 590 102 0.32 0.65 Primary Zone
14 to 590 576 0.48 0.78 Entire Hole
Drill Hole DDHF-20, located approximately 950 meters
northwest of DDHF-12A, encountered a 30-meter interval from
144 meters to 174 meters grading 0.78 percent copper and
0.54 grams of gold per tonne. Drill hole DDHF-21, located
approximately 350 meters northeast of DDHF-12A, encountered
a 62-meter interval from 52 meters to 114 meters grading
1.05 percent copper and 0.28 grams of gold per tonne and a
24-meter interval from 152 meters to 176 meters grading
0.87 percent copper and 0.38 grams of gold per tonne. Both
DDHF-20 at 422 meters of total depth and DDHF-21 at 658
meters of total depth were mineralized the entire length of
the hole.
Sample preparation and assaying of 12 holes with
approximately 4,633 meters of drilling has not yet been
completed. Metallica intends to issue an interim update
with all historical results, any new results, and drill
hole location maps prior to May 30, 2001. When Noranda has
received and analyzed all of the results from this season's
exploration, Metallica will issue a comprehensive summary
of the project.
Noranda's drilling during this exploration season was
centered on the La Fortuna and El Negro portions of the El
Morro property. Due to an early start of winter weather,
Noranda has completed this season's drill campaign. From
November of 2000 to early April of 2001, Noranda completed
a total of 15,315 meters of diamond drill core, 5,320
meters at El Negro and 9,995 meters at La Fortuna.
All of the analyses received since our last press release
of March 5, 2001, along with the drill hole coordinates,
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. A quality control program of
check assays at a second laboratory has been initiated and
results will be reported when available. 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 percent interest
in the El Morro project by completing work commitments of
US$10 million 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, US$1 million in Metallica common stock by
September 14, 2001. 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, ``Noranda's work
at the El Morro project has been outstanding. The
mineralized zone at La Fortuna continues to expand with
exciting results.''
Metallica is a Canadian precious metals exploration and
development company focused on Latin America. 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 UNKNOW
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.
LA FORTUNA DRILLING RESULTS
GLOBAL POSITIONING SURVEY QUALITY, SURVEYING IS IN PROGRESS
Hole Northing Easting Length (m) Azimuth Incl.
(degrees) (degrees)
DDHF - 20 6,833,500 412,818 422 30 -70
DDHF - 21 6,832,900 413,634 658 30 -70
DDHF - 22 6,833,125 411,900 320 50 -65
DDHF - 23 6,832,748 413,571 441 30 -70
DDHF - 12A 6,832,710 413,347 456 30 -70
DDHF - 24 6,833,064 413,523 590 30 -70
Assay Results Fortuna:
Hole From (m) To (m) Length Cu (%) Mo (ppm) Au (g/t)
DDHF - 20 7 144 137 0.04 49 0.25
144 174 30 0.78 23 0.24
174 310 136 0.21 32 0.29
310 422 112 0.19 35 0.28
DDHF - 21 15 52 37 0.17 59 0.37
52 114 62 1.05 110 0.28
114 152 38 0.32 61 0.30
152 176 24 0.87 80 0.38
176 328 152 0.38 52 0.35
328 568 240 0.29 42 0.33
568 658 90 0.16 55 0.15
DDHF - 22 4 120 116 0.16 122 0.20
120 272 152 0.06 41 0.07
272 312 40 0.24 21 0.38
312 320 8 0.03 11 0.04
DDHF - 23 35 60 25 0.08 93 0.13
60 132 72 0.26 78 0.13
132 296 164 0.35 71 0.23
296 441 145 0.23 94 0.17
DDHF - 12A 0 62 62 0.98 89 0.20
62 108 46 3.28 41 0.21
108 456 348 0.69 34 0.52
DDHF - 24 14 94 80 0.27 49 0.40
94 388 294 0.55 67 0.82
388 488 100 0.63 68 1.11
488 590 102 0.32 NA 0.65
EL NEGRO DRILLING RESULTS
GLOBAL POSITIONING SURVEY QUALITY
Hole Northing Easting Length (m) Azimuth Incl.
(degrees) (degrees)
DDHN - 3 6,831,950 411,403 302 50 -70
DDHN - 5 46 70 -55
DDHN - 5A 6,832,725 411,745 302 50 -55
DDHN - 6 6,832,200 411,140 361 50 -70
DDHN - 7 6,831,338 411,187 341 50 -60
DDHN - 8 6,831,167 411,090 358 50 -60
DDHN - 9 6,832,570 411,012 183 50 -60
DDHN - 10 6,831,099 411,016 343 50 -60
Assay Results El Negro:
Hole From (m) To (m) Length Cu (%) Mo (ppm) Au (g/t)
DDHN - 3 4 86 82 0.10 298 0.07
86 302 216 0.05 36 0.03
DDHN - 5A 17 46 29 0.14 10 0.11
46 106 60 0.04 11 0.04
106 302 197 0.02 13 0.01
DDHN - 6 5 92 87 0.03 11 0.03
92 196 104 0.09 18 0.05
196 361 165 0.04 15 0.02
DDHN - 7 5 262 257 0.12 26 0.11
262 341 79 0.07 24 0.06
DDHN - 8 5 34 29 0.14 13 0.10
34 156 122 0.23 16 0.22
156 358 202 0.11 18 0.14
DDHN - 9 3 183 180 0.01 2 0.02
DDHN - 10 5 146 141 0.13 28 0.10
146 282 136 0.21 14 0.23
282 300 18 0.08 24 0.11
300 320 20 0.29 38 0.42
320 343 23 0.12 48 0.17
--------------------------------------------------------------------------------
Contact:
Metallica Resources Inc.
Ritch Hall, 303/796-0229, Ext. 304
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