Metallica Resources Inc.
TSX : MR
AMEX : MRB

Metallica Resources Inc.

April 19, 2007 08:30 ET

Metallica Resources Announces Dore Pours Underway at Cerro San Pedro Project, Mexico

TORONTO, ONTARIO--(CCNMatthews - April 19, 2007) - Metallica Resources Inc. (TSX:MR)(AMEX:MRB) is pleased to report that dore pours are underway at its 100% owned Cerro San Pedro ("CSP") heap-leach gold and silver project in Mexico. Pours will continue on a regular basis as the project advances towards full production later in the year. At present, there are approximately 660,000 tonnes of ore on the leach pad, containing approximately 14,000 ounces of gold and 760,000 ounces of silver. Ore is being added to the pad at a rate of about 11,500 tonnes per day.

In other developments, construction has begun on the second and third cells of the phase-one heap-leach pad. This construction is expected to be completed in the third quarter and will result in sufficient heap-leach pad capacity for the first four years of operation. The estimated cost to complete the phase-one pad is approximately $3 million.

As previously announced, an updated mineral reserve prepared earlier this year increased the proven and probable mineral reserve 25% over that reported in 2006. The current mineral reserve is estimated to be approximately 1.5 million ounces of gold and 62 million ounces of silver, or 2.6 million gold-equivalent ounces, based on the three-year historical average of $475 per ounce gold and $8.00 per ounce silver. Average annual production over the estimated 10-year mine life is forecast to be 90,000 ounces of gold and 2.1 million ounces of silver, or 125,000 gold-equivalent ounces. Cash costs per ounce of gold, net of the current silver price, are projected to be $91 per ounce.

Metallica Resources is a Canadian precious and base metal exploration and development company focused on the Americas. It currently has 92.4 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.

Press Release No. 07-05

Contact Information

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