Metallica expands Cerro San Pedro

Junior Metallica Resources (MR-T) is expanding the limits of mineralization at the Cerro San Pedro gold-silver project in central Mexico.

Based on a 1995 drill program and a subsequent prefeasibility study, the deposit contains a geological resource of 2.2 million oz. gold and 59.3 million oz. silver. Minable reserves stand at 60.7 million tonnes grading 0.66 gram gold and 23.8 grams silver. These calculations were based on drill data collected within a 650-metre segment of the deposit’s yet-to-be- determined strike length.

More recently, a stepout hole, drilled 50 metres north of the previously defined block of mineralization, returned a 160-metre interval with an average grade of 1.1 grams gold and 31.2 grams silver per tonne. Essentially, the entire mineralized intercept was in altered, oxidized porphyry, the deposit’s dominant host rock. Drilling in this northern extension zone is continuing, with a minimum of 8-10 holes remaining to be drilled.

Results from the 1996 drilling will be incorporated into a new resource cal- culation in August.

A full feasibility study is under way, including metallurgical, geotechnical and engineering studies. A 50-hole program of infill drilling is nearing completion, with results to date supporting the prefeasibility study reserve calculation.

Metallica also plans to conduct a deep drilling test of a coincident magnetic-induced-polarization anomaly. In July, several holes will be drilled to depths of up to 1,000 metres.