TORONTO, ONTARIO--(CCNMatthews - May 1, 2006) - Metallica Resources Inc. (TSX:MR)(AMEX:MRB) is pleased to report the results for 21 additional diamond drill core holes totaling 7,707 meters from this season's drilling program at the El Morro copper-gold project in Chile. These results represent the second series of holes to be reported from an approximate 70-hole drilling program totaling approximately 27,000 meters on the La Fortuna copper-gold resource. Including the results reported in this press release, 30 holes totaling 12,438 meters have been reported to date for the current drilling program.
This drilling program, as well as a 1,150 meter underground decline, is part of a recently announced prefeasibility study that is scheduled to be completed by the end of 2006 at an estimated cost of approximately US$40 million to Metallica's joint venture partner Falconbridge Limited (TSX:FAL.LV, NYSE:FAL). Metallica's Agreement with Falconbridge calls for Falconbridge to complete a feasibility study by mid-September 2007. Metallica owns a 30% interest in the El Morro project, with Falconbridge owning the remaining 70% interest. Falconbridge is the project operator.
The 21 holes reported here were drilled to provide further definition to the upper 400 to 600 meters of the La Fortuna copper-gold resource and to elevate the resource classification to measured and indicated status. Thirteen of the 21 holes reported here served a dual purpose as infill holes and as large diameter core holes to provide additional core material for metallurgical testing. These 13 holes total 4,168 meters and were drilled to depths ranging from 150 to 400 meters in the central part of the La Fortuna resource. The remaining eight holes, which total 3,539 meters, were drilled as infill holes to depths of 370 to 700 meters to further delineate the outer edges of the La Fortuna porphyry stock and secondary enrichment zone. An updated drill hole location map for these holes will be provided with a Material Change Report to be filed on SEDAR at www.sedar.com within ten days of this press release.
Drill results for the 21 holes reported herein are summarized in the
table below:
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LA FORTUNA DEVELOPMENT DRILLING - April 2006
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Hole No. From (m) To (m) Length (m) Cu % Au g/t Comments
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DDHF-78 0 10 10 0.06 0.02 GRAVEL
10 56 46 0.10 0.10 LEACHED
56 160 104 0.51 0.20 SECONDARY
160 500 340 0.40 0.21 PRIMARY
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DDHF-79 0 78 78 0.02 0.06 LEACHED
78 98 20 0.85 0.04 SECONDARY
98 372 274 0.19 0.10 PRIMARY
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DDHF-79A 0 82 82 0.04 0.05 LEACHED
82 108 26 1.00 0.04 SECONDARY
108 328 220 0.22 0.08 PRIMARY
328 567 239 0.43 0.35 PRIMARY
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DDHF-80 0 132 132 0.14 0.07 LEACHED
132 168 36 0.58 0.13 SECONDARY
168 538 370 0.68 0.68 PRIMARY
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DDHF-81 0 144 144 0.05 0.61 LEACHED
144 252 108 1.58 0.65 SECONDARY
252 352 100 0.71 1.24 PRIMARY
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DDHF-82 0 100 100 0.01 0.12 GRAVEL
100 246 146 0.03 0.53 LEACHED
246 302 56 2.17 0.83 SECONDARY
302 395 93 0.65 0.98 PRIMARY
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DDHF-83 0 146 146 0.04 0.57 LEACHED
146 198 52 1.13 0.84 SECONDARY
198 401 203 0.54 0.58 PRIMARY
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DDHF-84 0 110 110 0.01 0.08 GRAVEL
110 186 76 0.05 0.36 LEACHED
186 330 144 1.64 0.65 SECONDARY
330 412 82 0.63 0.91 PRIMARY
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DDHF-85 0 26 26 0.01 0.04 GRAVELS
26 182 156 0.04 0.63 LEACHED
182 218 36 2.14 0.84 SECONDARY
218 440 222 0.40 0.48 PRIMARY
440 700 260 0.17 0.19 PRIMARY -
volcanic
country
rocks
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DDHF-86 0 16 16 0.05 0.22 LEACHED
16 66 50 0.93 0.27 SECONDARY
66 120 54 0.66 0.45 PRIMARY
120 230 110 0.27 0.30 PRIMARY
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DDHF-87 0 188 188 0.06 0.56 LEACHED
188 262 74 1.71 1.00 SECONDARY
262 400 138 0.72 1.16 PRIMARY
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DDHF-88 0 22 22 0.13 0.23 LEACHED
22 300 278 0.40 0.28 PRIMARY
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DDHF-89 0 30 30 0.07 0.18 LEACHED
30 98 68 1.34 0.37 SECONDARY
98 320 222 0.44 0.56 PRIMARY
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DDHF-90 0 56 56 0.00 0.01 GRAVELS
56 338 282 0.01 0.11 LEACHED
338 418 80 1.03 0.33 SECONDARY
418 450 32 0.19 0.22 PRIMARY
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DDHF-91 0 16 16 0.03 0.39 LEACHED
16 84 68 0.56 0.47 SECONDARY
84 150 66 0.37 0.51 PRIMARY
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DDHF-92 Results pending
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DDHF-93 0 22 22 0.06 0.57 LEACHED
22 48 26 0.55 0.37 SECONDARY
48 288 240 0.49 0.55 PRIMARY
288 320 32 0.07 0.12 PRIMARY
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DDHF-94 0 146 146 0.03 0.31 LEACHED
146 244 98 1.17 0.46 SECONDARY
244 300 56 0.51 0.60 PRIMARY
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DDHF-95 0 12 12 0.001 0.05 GRAVELS
less
than
12 22 10 0.25 0.06 LEACHED
22 46 24 0.98 0.17 SECONDARY
46 150 104 0.22 0.14 PRIMARY
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DDHF-96 Results pending
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DDHF-97 Results pending
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DDHF-98 0 120 120 0.03 0.09 LEACHED
120 268 148 0.45 0.20 SECONDARY
268 400 132 0.61 0.41 PRIMARY
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DDHF-99 Results pending
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DDHF-100 Results pending
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DDHF-101 Results pending
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DDHF-102 Results pending
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DDHF-103 0 12 12 0.06 0.13 GRAVELS
12 50 38 0.14 0.19 MIXED
50 102 52 1.05 0.16 SECONDARY
102 150 48 0.79 0.16 PRIMARY
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DDHF-104 Results pending
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DDHF-105 0 24 24 0.10 0.16 LEACHED
24 56 32 0.37 0.27 SECONDARY
56 300 244 0.52 0.63 PRIMARY
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ACTLABS CHILE S.A. of Coquimbo, Chile, using internal standards and Gannet certified standards, has completed all of Falconbridge's analytical 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. Falconbridge maintains a rigorous and ongoing quality control program using project specific standards and blank samples. The qualified person, as defined by NI 43-101, responsible for the design and conduct of the work performed is Michael Donnelly, P. Geo. of Falconbridge Limited.
As reported in a previous Metallica press release, at a copper-equivalent cut-off grade of 0.4% using metal prices of $1.00/lb copper and $400/oz gold, the La Fortuna deposit includes indicated resources totaling 209 million tonnes grading 0.67% copper and 0.59 g/t gold and inferred resources totaling 538 million tonnes grading 0.46% copper and 0.39 g/t gold. Metallica's 30% interest in the La Fortuna resource equates to approximately 0.93 billion pounds of copper and 1.2 million ounces of gold in the indicated category, and 1.6 billion pounds of copper and 2.0 million ounces of gold in the inferred category.
The resource estimate for the La Fortuna deposit is classified as an indicated and inferred mineral resource in accordance with Canadian Institute of Mining, Metallurgy and Petroleum definitions for mineral resources and mineral reserves. The estimate is based entirely on data provided to Metallica by Falconbridge. The geologic model for the estimate has been developed by qualified Metallica and Norwest professionals. The Qualified Persons, as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, responsible for the design and completion of the updated resource estimate are Bruce M. Davis, Fellow - AusIMM and Chief Geostatistician for Norwest Corporation and Mark Petersen, Certified Professional Geologist - AIPG and Exploration Manager for Metallica Resources.
Metallica Resources is an emerging gold and silver producer focused on the exploration and development of precious metal rich properties throughout the Americas. It currently has 83.6 million shares outstanding. For further details on Metallica Resources, please visit the Company's website at www.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 UNKNOWN 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Metallica Resources Inc.
Richard J. Hall
President and CEO
(303) 796-0229, Ext. 304
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