Noranda and Metallica revise joint venture

Noranda (N-T) has revised its agreement with Metallica Resources (MR-T) over the Chilean copper porphyry target known as El Morro.

Under the new agreement, Noranda can earn a 70% interest in the property in return for US$20 million (in the form of exploration expenditures and cash payments) over then next five years. Noranda is also responsible for any feasibility work.

The company is preparing to begin a 2,500-metre drill program, which will focus on an area where Metallica encountered 192 metres of mineralization grading 0.77% copper and 0.29 gram gold per tonne.

The mineralized porphyry system occupies a 4-sq.-km geophysical and geochemical anomaly.

Drilling is also planned for the adjacent property, known as La Fortuna.