Consistent copper, gold values at La Fortuna

Drill results from the La Fortuna copper-gold deposit will be used to expand the resource estimate of the El Morro project in northern Chile.

Equal partners Metallica Resources (MR-T) and Noranda (NRD-T) are overseeing a 23-hole program, and recent results indicate a zone of secondary enrichment followed by primary mineralization. Highlights are as follows:

– hole 61 — 68 metres grading 2.05% copper and 0.94 gram gold per tonne followed by 302 metres grading 0.78% copper and 1.23 grams gold;

– hole 64 — 56 metres grading 1.58% copper and 0.60 gram gold followed by 195 metres of 0.53% copper and 0.7 gram gold;

– hole 67 — 90 metres grading 1.45% copper and 0.69 gram gold followed by 86 metres of 0.66% copper and 1 gram gold.

Four additional holes cut 34-62 metres of secondary enrichment grading as high as 1.08-1.71% copper and 0.3-0.77 gram gold, and three holes cut primary mineralization 94-332 metres wide grading as high as 0.51-0.82% copper and 0.51-0.77 gram gold.

The holes were drilled to an average depth of 410 metres.

Sixty-eight holes (30,000 metres) have tested the resource at an average spacing of 100 metres.

In 2002, Noranda estimated La Fortuna contained an inferred resource of 465 million tonnes grading 0.61% copper and 0.5 gram gold at a cutoff of 0.4% copper. Included were 103 million tonnes of supergene mineralization grading 0.71% copper and 0.35 gram gold.

Metallica recalculated the resource using a cutoff of 0.4% copper-equivalent. Based on a copper price of US90 per lb. and a gold price of US$375 per oz., the inferred resource was 641 million tonnes grading 0.53% copper and 0.46 gram gold. A new resource estimate is due in the third quarter.

Noranda is earning a 70% interest in the 236-sq.-km El Morro project, which is 80 km east of Vallenar.