Metallica cuts gold values in Chile

Junior Metallica Resources (MR-T) has intersected high-grade gold values at its 50%-held La Fortuna property in north-central Chile.

La Fortuna is adjacent to the company’s wholly owned El Morro porphyry copper prospect, in the country’s Region IV.

At La Fortuna, drilling hit 36 metres grading 4 grams gold per tonne in Metallica’s first hole, 13, starting 40 metres below the surface. Included in that interval were 16 metres grading 6.65 grams gold. The company’s partner, Broken Hill Proprietary (BHP-N), drilled the first 12 holes.

At the Cantarito target, Metallica hit a 13-metre interval in hole 15 grading 3.2 grams gold, including 8 metres of 4.7 grams gold. Cantarito is a structurally controlled zone on strike from La Fortuna. In previous drilling, BHP encountered 18 metres of 6 grams gold and 22 metres of 1 gram gold.

Assay results showed only anomalous copper values in both holes 13 and 15.

Metallica expects to drill six holes at La Fortuna before returning to El Morro for more drilling on the strength of positive results at the latter.

In late February, the company hit 192 metres grading 0.64% copper and 0.22 gram gold in the second hole of a 10-hole program. Included in that interval were 126 metres grading 0.73% copper and 0.25 gram gold.

At El Morro, a 500-metre program of core drilling is attempting to twin mineralization found in the discovery hole.

Metallica recently expanded El Morro to 15,300 ha, bringing the total land package for both El Morro and La Fortuna to 17,400 ha.

Meanwhile, at the Cerro San Pedro gold-silver project in Mexico, Metallica and its joint-venture partner, Cambior (CBJ-T), report that their environmental impact statement has been approved.

Construction permits are expected by June, at which time Cambior is to publish a revised feasibility study. A production decision will be made based on the results of that study and the price of gold.

Cambior is earning a half-interest in the project, which is near the city of San Luis Potosi in central Mexico. The property contains reserves of 1 million oz. gold and 39 million oz. silver in 56 million tonnes grading 0.57 gram gold and 21.8 grams silver per tonne.