La Fortuna resource firmed up (May 09, 2005)

Partners Metallica Resources (MR-T) and Noranda (NRD-T) have intersected significant copper and gold at their El Morro project, 80 km east of Vallenar in north-central Chile.

Hole 46 cut 214 metres grading 0.86% copper and 0.74 gram gold per tonne at a down-hole depth of 82 metres, directly followed by 160 metres of 0.65% copper and 0.86 gram gold.

The hole was drilled near the centre of the resource. Another hole in this area returned 58 metres grading 1.84% copper and 0.92 gram gold at 136 metres down-hole, immediately followed by 306 metres of 0.67% copper and 0.81 gram gold.

Six other holes drilled in the same central area cut 8-86 metres of secondary enrichment grading 0.72-2.07% copper and 0.22-0.78 gram gold, followed by 170-467 metres of primary mineralization grading 0.5-0.68% copper and 0.38-0.69 gram gold.

Five holes were drilled on the periphery of the deposit, including hole 48, which intersected 74 metres grading 1.24% copper and 0.37 gram gold at a down-hole depth of 162 metres, immediately followed by 236 metres of 0.56% copper and 0.72 gram gold.

The four other peripheral holes cut 18-96 metres grading 0.4-0.8% copper and 0.09-0.43 gram gold in the upper enriched zone, followed by 116-310 metres grading 0.31-0.63% copper and 0.31-0.54 gram gold.

Nine of the holes ended in copper or gold values greater than the average resource grade.

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

Assays are still pending for 10 of the 23 holes drilled. Once all results have been received, a new resource estimate will be calculated.

Noranda is earning a 70% interest in the 236-sq.-km El Morro project from Metallica. Noranda owns 7.3% of the outstanding shares of Metallica.

BHP Billiton (BHP-N) and another former owner retain a net smelter return royalty on production from El Morro.

El Morro, which is 5 km west of La Fortuna, hosts the La Fortuna and El Morro copper-gold porphyry zones.

In 2004, Noranda estimated the El Morro deposit contained an inferred resource of 45 million tonnes grading 0.5% copper and 0.18 gram gold per tonne.