ASX ANNOUNCEMENT AND MEDIA RELEASENORNICO PROJECTFINALISATION OF...

ASX ANNOUNCEMENT AND MEDIA RELEASE
NORNICO PROJECT
FINALISATION OF BELL CREEK DRILLING FOR FEASIBILITY STUDY
5th June 2007
Metallica Minerals Limited (ASX Code ¡¥MLM¡¦) is pleased to announce the results of a 369
hole infill and step-out resource drilling programme at the Bell Creek nickel deposits. A
revised Resource statement is expected to be completed in mid August .
The drilling programme was aimed at increasing the resource status of the Bell Creek North
and Northwest deposits from Inferred to Indicated, and upgrading the Bell Creek South
Resource from Indicated to Measured, as well as closing off zones of significant
mineralisation. Results were within or exceeded expectations and several areas of economic
grade mineralisation were defined outside the current resource areas.
This resource drilling is likely to be the last major drill programme on the Bell Creek
deposits. The Company is undertaking a feasibility study for the development of a 1.5 million
tonne per annum heap leach nickel operation producing a nominal 10,000 tonnes of nickel per
year as a mixed hydroxide product which can be sold to local (such as BHP Billiton¡¦s Yabulu)
and overseas nickel refineries. The current NORNICO Inferred and Indicated Resource (based
on Bell Creek & Minnamoolka deposits drilling to end 2006) is 29.7Mt @ 0.75% Ni
containing 222,000 tonnes contained nickel metal using 0.45% Ni cut-off grade.
Due to the shallow nature of the nickel mineralisation and based on current preliminary pit
designs we expect that over 90% of the nickel resource will be included within pit shells
resulting very low <1:1 strip ratios (waste:ore).
Metallica completed 369 holes for 7,764m of RC drilling between February and April 2007 at
the Bell Creek South, North and Northwest deposits. A summary of the drilling at the
individual prospects is summarised in Table 1 and in Figures 1-3 attached (red dots represent
all the 2007 drill holes).

Bell Creek South Deposit
Drilling at Bell Creek South concentrated on further defining the limits of the open pit design
and infilling areas where there was need for more detailed data. Drilling was also carried out
on the margins of the resource to close of zones of mineralisation which were still open. The
drilling results were within expectation, however additional zones of higher grade (+1% Ni)mineralisation were identified on the margins of the deposit and within parts of the preexisting
resource model which was previously identified as low grade material. The 2007 drill
hole locations are presented on Figure 1.
Higher grade intercepts include:-
„hBCSL-176, 13m @ 1.74% Ni from 0
„hBCSL-184, 29m @ 1.29% Ni from 4m
„hBCSL-222, 15m @ 1.25% Ni from 10m
„hBCSL-226, 36m @ 1.32% Ni from 8m
„hBCSL-233, 10m @ 1.73% Ni from 0m
„hBCSL-237, 18m @ 1.25% Ni from 0m
„hBCSL-248, 26m @ 1.45% Ni from 15m
„hBCSL-254, 21m @ 1.48% Ni from 0m
„hBCSL-255, 14m @ 1.45% Ni from 7m
„hBCSL-258, 13m @ 1.76% Ni from 5m
„hBCSL-266, 19m @ 1.50% Ni from 0m
„hBCSL-271, 20m @ 1.44%Ni from 0m
„hBCSL-272, 19m @ 1.53% Ni from 0m
„hBCSL-319, 10m @ 1.59% Ni from 0m
„hBCSL-332, 17m @ 1.86% Ni from 0m
„hBCSL-340, 24m @ 1.35% Ni from 1m
„hBCSL-363, 21m @ 1.55% Ni from 21m
Bell Creek North Deposit
The majority of the drilling at Bell Creek North was completed at the northern end of the
deposit. An area low to moderate grade nickel laterite mineralisation (0.45% Ni to 0.70% Ni)
was identified over a 400m by 250m area north of the existing resource.
The style of mineralisation in this area is dominantly silica boxwork texture which is highly
amenable to beneficiation and is also a good blending material for the Bell Creek South
laterites. 2007 drill hole locations are presented on Figure 2.
Better intercepts include:-
„h BCNL-104, 18m @ 1.33% Ni from 0m
„h BCNL-187, 35m @ 0.78% Ni from 0m
„h BCNL-188, 11m @ 0.97% Ni from 0m
Bell Creek Northwest.
Drilling at the Bell Creek Northwest deposit was aimed at identifying additional nickel
laterite resources on the margins of the three zones already delineated. Significant additional
nickel laterite mineralisation (grading between 0.5% Ni to > 1.0% Ni) was identified outside
the existing resource model. 2007 drill hole locations are presented on Figure 3. Better
intercepts include:-
„h BCNW-129, 15m @ 0.90% Ni from 22m
„h BCNW-135, 18m @ 0.89% Ni from 25m
„h BCNW-136, 26m @ 1.05% Ni from 19m
„h BCNW-142, 41m @ 0.85% Ni from 3m
„h BCNW-143, 24m @ 0.87% Ni from 14m
„h BCNW-152, 10m @ 1.14% Ni from 0m
„h BCNW-153, 16m @ 0.90 % Ni from 0m
Future Work
All the data from this drill programme is being correlated and uploaded into the Bell Creek
drill hole data base. An updated resource statement for Bell Creek is scheduled for completion
in mid August. It is expected that the new resource statement will elevate the majority of the
existing resource from Inferred to Indicated status, and a significant part of the Bell Creek
South resource is expected to be classed in the Measured Resource category.
The next major resource drilling programme
comprising 3,000m (130 holes) will target
expanding and enhancing the current Minnamoolka
nickel resource (14 Mt @ 0.67% Ni based on
drilling to the end 2006) and is planned for July.
Followed by a 2,000m (40 hole) drill hole
programme on the Kokomo nickel project to define
a maiden resource.



Sounds pretty good to me!

i hold