Metallica Resources Inc.
TSX : MR
AMEX : MRB

Metallica Resources Inc.

March 28, 2007 08:30 ET

Metallica Reports High Grade Copper-Gold Mineralization in the La Fortuna Deposit and Renewed Exploration at the El Morro Project, Chile

TORONTO, ONTARIO--(CCNMatthews - March 28, 2007) - Metallica Resources Inc. (TSX:MR)(AMEX:MRB) is pleased to report the results of a 6,208 meter core drilling program completed by joint venture partner, Xstrata Copper, at Metallica's 30%-owned El Morro copper-gold project in Chile. Results of this program underscore the robust character of the La Fortuna copper-gold deposit and provide additional evidence that the resource remains open at depth. The program, carried out during the fourth quarter of 2006, was designed to confirm the continuity of high grade copper-gold mineralization in the core of the La Fortuna porphyry stock, improve delineation of deep inferred resources, and test the extent of secondary supergene mineralization along the northern limits of the La Fortuna resource.

Highlights of the program include:

- DDHF-139 intercepted 780 meters averaging 0.84% copper and 1.24 g/t gold from 20 to 800 meters

- DDHF-140 intercepted 774 meters averaging 0.65% copper and 0.51 g/t gold from 56 to 830 meters

- DDHF-141 intercepted 820 meters averaging 0.59% copper and 0.73 g/t gold from 30 to 850 meters

- DDHF-142 intercepted 690 meters averaging 0.82% copper and 0.69 g/t gold from 124 to 814 meters

- DDHF-143 intercepted 542 meters averaging 0.70% copper and 0.91 g/t gold from 218 to 760 meters

- DDHF-144 intercepted 758 meters averaging 0.93% copper and 0.99 g/t gold from 102 to 860 meters

The drilling program has confirmed the vertical continuity of a high grade core occurring in two separate zones, each measuring approximately 300 to 400 meters long by 200 to 300 meters wide (see table of drill hole results below). Six holes, DDHF-139 through DDHF-144, were drilled to depths ranging from 800 to 860 meters. All of the holes terminated in mineralization, currently classified as inferred, approximately 100 to 150 meters below the deepest levels of the currently defined measured and indicated resources.

Further confirmation of a high grade core to the La Fortuna deposit is provided by comparing the above drill results to an updated resource estimate for the La Fortuna deposit reported in November 2006. At a 0.4% copper-equivalent cut-off, the La Fortuna resource is estimated to contain 192 million tonnes of measured material averaging 0.68% copper and 0.57 g/t gold, 315 million tonnes of indicated material grading 0.52% copper and 0.49 g/t gold, and 231 million tonnes of inferred material averaging 0.48% copper and 0.42 g/t gold. Metallica's 30% ownership share of the El Morro project equates to 1.94 billion pounds of copper and 2.54 million ounces of gold in the combined measured and indicated categories, and 0.73 billion pounds of copper and 0.94 million ounces of gold in the inferred category. The results of this drilling program are being incorporated into an updated resource estimate that will be part of a final feasibility study scheduled for completion by Xstrata in September of this year.

An additional three holes, DDHF-145 through DDHF-147, were drilled to delineate the limits of secondary sulfide mineralization in volcanic country rocks to the north of the main La Fortuna resource. All three holes encountered weak to moderate copper-gold grades that diminish with distance from the main porphyry stock and effectively close off the resource to the north.

On the exploration front, Metallica has been informed that Xstrata's plans for the 2007 work program at El Morro include $1.2 million in new exploration directed towards targets outside the main La Fortuna resource area. This program represents the first exploration work to be conducted outside the La Fortuna area since 2002. Metallica is required to contribute 30% toward the cost of this work, pursuant to the terms of the El Morro joint venture agreement. Results of this program will be provided as they become available.

Drill results for the nine holes reported herein are summarized in the table below:



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LA FORTUNA DEVELOPMENT DRILLING - Fourth Quarter 2006
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Hole No. From To Length Cu Au
(m) (m) (m) (%) (g/t) Comments
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DDHF-139 0 20 20 0.02 0.76 Leached Cap
20 90 70 0.81 0.91 Secondary Sulfides
90 800 710 0.85 1.27 Primary Sulfides
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DDHF-140 0 56 56 0.70 0.27 Copper Oxides
56 72 16 0.45 0.37 Secondary Sulfides
72 544 472 0.62 0.53 Primary Sulfides
544 586 42 0.18 0.15 Primary Sulfides
586 830 244 0.80 0.53 Primary Sulfides
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DDHF-141 0 30 30 0.04 0.13 Leached Cap
30 68 38 1.73 0.14 Secondary Sulfides
68 104 36 0.26 0.18 Mixed Secondary &
Primary Sulfides
104 246 142 0.25 0.16 Primary Sulfides
246 850 604 0.62 0.94 Primary Sulfides
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DDHF-142 0 124 124 0.10 0.43 Leached Cap
124 176 52 1.67 0.58 Secondary Sulfides
176 814 638 0.75 0.69 Primary Sulfides
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DDHF-143 0 218 218 0.02 0.11 Leached Cap
218 360 142 0.60 0.51 Secondary Sulfides
360 576 216 0.47 0.50 Primary Sulfides
576 760 184 1.04 1.71 Primary Sulfides
760 836 76 0.22 0.30 Primary Sulfides
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DDHF-144 0 10 10 NA NA No Recovery
10 84 74 0.07 0.50 Leached Cap
84 102 18 1.23 0.53 Copper Oxides
102 158 56 1.45 0.49 Secondary Sulfides
158 598 440 0.70 0.71 Primary Sulfides
598 860 262 1.20 1.56 Primary Sulfides
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DDHF-145 0 150 150 0.01 0.01 Post-mineral Gravels
150 244 94 0.03 0.04 Leached Cap
244 344 100 0.19 0.07 Mixed Secondary &
Primary Sulfides
344 406 62 0.04 0.05 Primary Sulfides
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DDHF-146 0 204 204 0.00 0.01 Post-mineral Gravels
204 276 72 0.21 0.07 Leached Cap
276 284 8 0.36 0.36 Secondary Sulfides
284 412 128 0.05 0.02 Primary Sulfides
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DDHF-147 0 172 172 0.00 0.01 Post-mineral Gravels
172 260 88 0.03 0.10 Leached Cap
260 278 18 0.31 0.02 Secondary Sulfides
278 314 36 0.04 0.02 Primary Sulfides
314 320 6 1.28 0.02 Secondary Sulfides
320 400 80 0.12 0.03 Primary Sulfides
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To view a location map for the above drill holes please click on the following link: http://www.ccnmatthews.com/docs/metalmap.pdf

All drill core from the drilling program reported herein has been sampled and analyzed according to Xstrata's Six Sigma quality assurance and quality control protocols which include the use of project specific internal standards, Gannet certified standards, and blank samples. ACTLABS CHILE S.A. of Coquimbo, Chile has completed all of Xstrata's analytical assay work for this drilling campaign. The analytical methods used are geochemical analysis for the copper and fire assay with an atomic absorption finish for the gold values. ACTLABS is certified by the ISO 9001:2000 standards.

The Qualified Person, as defined by Canadian NI 43-101 - Standards of Disclosure for Mineral Projects, responsible for directing the design and execution of the drilling program and reporting the results to Metallica is Mr. Raul Roco, Member - AusIMM and Manager of Mines Geology for Xstrata Copper. The Qualified Person responsible for the preparation of the information contained in this press release is Mr. Mark A. Petersen, Certified Professional Geologist - AIPG and Vice President of Exploration for Metallica Resources.

Metallica Resources is a Canadian precious and base metal exploration and development company focused on the Americas. It currently has 92.2 million shares outstanding. As of December 31, 2006, it had approximately US$45 million in cash and cash equivalents with no debt. For further details on Metallica Resources, please visit the company's website at www.metal-res.com.

INFORMATION IN THIS NEWS RELEASE THAT IS NOT CURRENT OR HISTORICAL FACTUAL INFORMATION MAY CONSTITUTE FORWARD-LOOKING INFORMATION OR STATEMENTS WITHIN THE MEANING OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND APPLICABLE CANADIAN SECURITIES LEGISLATION. IMPLICIT IN THIS INFORMATION, PARTICULARLY IN RESPECT OF STATEMENTS AS TO FUTURE OPERATING RESULTS AND ECONOMIC PERFORMANCE OF THE COMPANY, AND RESOURCES AND RESERVES AT THE COMPANY'S MINERAL PROJECTS, ARE ASSUMPTIONS REGARDING PROJECTED REVENUE AND EXPENSE, GOLD, SILVER AND COPPER PRICES, AND MINING COSTS. THESE ASSUMPTIONS, ALTHOUGH CONSIDERED REASONABLE BY THE COMPANY AT THE TIME OF PREPARATION, MAY PROVE TO BE INCORRECT. READERS ARE CAUTIONED THAT ACTUAL RESULTS ARE SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES, INCLUDING RISKS RELATING TO GENERAL ECONOMIC CONDITIONS AND MINING OPERATIONS, AND COULD DIFFER MATERIALLY FROM WHAT IS CURRENTLY EXPECTED. THE COMPANY DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

Contact Information

  • Metallica Resources Inc.
    Richard J. Hall
    President and CEO
    (303) 796-0229, Ext. 304
    Website: www.metal-res.com