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Gold/Mining/Energy : Metallica (MR T) -- Ignore unavailable to you. Want to Upgrade?

To: charred who wrote (260)	5/7/2002 11:30:34 PM
From: Dan P	Read Replies (1) \| Respond to of 263

News release: Central hole in deposit " Copper-gold mineralization begins at surface and continues the entire length of the hole. The entire 970-metre length averages 0.65 per cent copper and 0.53 gram of gold per tonne." Excellent results: this should expand the tonnage considerably. Dan Tue 7 May 2002 News Release Mr. Ritch Hall reports METALLICA RESOURCES ANNOUNCES DRILL RESULTS FOR 970 METER COR ... Metallica Resources has released the results from a 970-metre deep vertical core hole, DDHF-39, at the La Fortuna area of the El Morro copper-gold project in Chile. Copper-gold mineralization begins at surface and continues the entire length of the hole. The entire 970-metre length averages 0.65 per cent copper and 0.53 gram of gold per tonne. A secondary enriched zone, from 20 metres to 62 metres in depth, averages 1.23 per cent copper and 0.56 gram of gold per tonne. Below 62 metres, primary mineralization is continuous to the bottom of the hole and averages 0.63 per cent copper and 0.53 gram of gold per tonne over 908 metres. The following table summarizes the results of DDHF-39. DRILL HOLE CO-ORDINATES Grid Grid Collar Hole East North Eleva- Dip Depth (utm) (utm) tion (deg) (m) (m) ---------------------------------------- DDHF-39 413393 6832798 4045 -90 970 ---------------------------------------- DRILL HOLE RESULTS Length Copper Au comments (m) % g/t DDHF-39 970 0.65 0.53 Entire hole 20 0.10 0.48 Leached zone 42 1.23 0.56 Secondary zone 750 0.68 0.56 Primary zone 158 0.40 0.36 Primary zone Selected intervals 42 1.23 0.56 Secondary/ Primary zone 908 0.63 0.53 Primary zone The La Fortuna area is the location of an inferred resource of 410 million tonnes grading 0.61 per cent copper and 0.56 gram of gold per tonne, equating to approximately 5.5 billion pounds of copper and 7.4 million ounces of gold, at a cutoff grade of 0.4 per cent copper. Attached are a drill hole location map and a simplified cross-section illustrating the location of DDHF-39 in relation to previous drilling at La Fortuna. DDHF-39 extends to an elevation of 3,075 metres or 400 metres below the bottom elevation used to limit the above-mentioned inferred resource. 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 fire assay with an atomic absorption finish for the gold values. A quality control program, using project specific standards and blank samples, is continuing. The qualified person responsible for the design and conduct of the work performed is Michael Donnelly for Noranda Inc. Noranda is the project 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 (U.S.) prior to September, 2005. Noranda is also required to complete a bankable feasibility study by September, 2007, and provide 91 per cent of the capital required to develop the project. Ritch Hall, Metallica's chief executive officer, stated: "Hole DDHF-39, in the heart of the La Fortuna zone, continues to exhibit the magnitude and extreme consistency of the deposit. This season's exploration program has been very successful at expanding the resources at La Fortuna, both laterally and at depth. Metallica will issue the results of the remaining drill holes after all analyses have been completed and verified." WARNING: The company relies upon litigation protection for "forward-looking" statements.