Partners Metallica Resources and Noranda have drilled a spectacular hole at the La Fortuna area of the El Morro copper-gold project in Chile.
The 970-metre vertical core hole, DDHF-39, contains mineralization thorughout its length, averaging 0.65% copper and 0.53 gram gold per tonne.
A secondary enriched zone, from 20 to 62 metres in depth, averages 1.23% copper and 0.56 gram gold. Below 62 metres, primary mineralization is continuous to the bottom of the hole and averages 0.63% copper and 0.53 gram gold over 908 metres.
Inferred resources at La Fortuna stand at 410 million tonnes grading 0.61% copper and 0.56 gram gold, or 5.5 billion lbs. copper and 7.4 million oz. gold, at a cutoff grade of 0.4% copper.
Noranda is the project operator and can earn a 70% interest in the El Morro project by completing work commitments of US$10 million and making a cash payment to Metallica of US$10 million prior to September 2005.
Noranda must also complete a bankable feasibility study by September 2007 and provide 91% of the capital required to develop the project.
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