CHILE – FALCONBRIDGE LTD. of Toronto has committed $40 million to underground exploration and a prefeasibility study at the El Morro project. An exploration decline will be driven into the La Fortuna copper-gold deposit. The first 800 metres will be cut through the secondary copper enrichment zone, and the next 350 metres will be driven into the primary sulphide zone. Samples collected during development of the decline will be used for additional grade studies, geotechnical assessment and metallurgical testing.
The El Morro project is operated and 70% owned by Falconbridge (www.Falconbridge.com). The remaining 30% belongs to METALLICA RESOURCES (www.Metal-Res.com) also of Toronto. A comprehensive history of the project is posted on the Metallica website. HATCH ENGINEERING of Santiago, Chile, has been retained to prepare the prefeasibility study.