Partners cut more wide intervals at El Morro project

The latest holes on the El Morro copper-gold project in Chile have returned some long intervals of continuous mineralization for partners Noranda (NOR-T) and Metallica Resources (MR-T).

Recent drilling has concentrated on part of the La Fortuna property, where Metallica has an option deal with BHP (BHP-N) and private interests. There, about 4 km southeast of the main El Morro mineralization, two earlier drill holes intersected 383 metres grading 0.72% copper and 0.54 gram gold per tonne, and 476 metres grading 0.61% copper and 0.58 gram gold.

Hole DDHF-12A, south of the two previous holes, cut 456 metres of continuous copper mineralization, including a secondary enriched copper interval measuring 46 metres and grading 3.28% copper and 0.21 gram gold per tonne. Above that zone, a 62-metre oxide interval graded 0.98% copper and 0.2 gram gold.

Beneath the supergene zone, the hole encountered 348 metres of primary mineralization grading 0.69% copper plus 0.45 gram gold to the bottom of the hole.

Hole DDHF-24, drilled 400 metres northeast of hole 12A, cut 576 metres of 0.48% and 0.78 gram gold. This included an upper oxide zone of 80 metres in core length that graded 0.27% copper and 0.4 gram gold.

Hole DDHF-20, about 950 metres northwest of hole 12A, intersected a 30-metre interval grading 0.78% copper and 0.54 gram gold. In all, the hole cut a 415-metre length of mineralized material.

Hole DDHF-21 was collared some 350 metres northeast of hole 12A and cut 643 metres of continuous mineralization, including a 62-metre interval grading 1.05% copper and 0.28 gram gold plus a deeper 24-metre interval grading 0.87% copper and 0.38 gram gold.

Two other holes intersected lower-grade mineralization on La Fortuna. DDHF-22 was mineralized over 316 metres but graded an average 0.12% copper and 0.16 gram gold, whereas DDHF-23 returned 406 metres grading 0.27% copper and 0.18 gram gold.

Molybdenum grades in the six La Fortuna holes ran between 23 and 122 grams per tonne.

Eight holes on the El Negro prospect, about 3 km southwest of La Fortuna on the same property, intersected lower-grade mineralization over big core lengths. Among the better intervals were a 122-metre length in DDHN-8 that graded 0.23% copper and 0.22 gram gold and a 136-metre intersection in DDHN-10 that ran 0.21% copper and 0.23 gram gold. Molybdenum grades were generally lower in the El Negro mineralization, apart from an 82-metre interval near surface in one hole that averaged 298 grams moly per tonne (0.03%).

Assay results for another 12 holes (4,633 metres) are expected before the end of May.

Early winter weather has forced Noranda to suspend further drilling at El Morro. Up to early April, the company had completed 15,315 metres of drilling on the La Fortuna and El Negro prospects on the BHP ground.

Noranda is operating the project and can earn a 70% interest by spending US$10 million on exploration and paying Metallica US$10 million. Noranda is also obliged to take a US$1-million private placement of Metallica shares at a 50% premium over-market by September of this year.