Metallica Minerals Announce Drill Results at Norinco Nickel Prospects

Brisbane, June 19, 2006 AEST (ABN Newswire) - Results from Metallica Minerals Limited (ASX: MLM) drilling programme in April 2006 at the Bell Creek Northwest and Bell Creek North Lease deposits, coupled with the earlier Minnamoolka drill programme, indicate a high likelihood of significantly increasing the existing NORNICO Inferred Resource of 20.7 Mt @ 0.78% Ni (which comprise resources at Bell Creek North Lease, South Lease and Northwest and Minnamoolka).

The latest drilling programme completed at the Bell Creek North Lease and Northwest prospects comprised 44 vertical RC holes for 934m and 35 holes for 840m respectively. This programme brings the total number of holes drilled at Bell Creek North and Northwest by Metallica since 2003 to 212. Prior to the recommencement of drilling at Bell Creek in April 06 the resources for the two deposits stood at 4.05Mt @ 0.73% Ni for Bell Creek North Lease and 1.81 Mt @ 0.73% Ni for Northwest.

The Bell Creek drilling was completed after the successful March drilling at Minnamoolka (see ASX release dated 19th April 2006) and was designed to test extensions to previously defined mineralised zones at the two prospects. Drill results were very encouraging with significant mineralisation intersected at both prospects. The best results include:-

Bell Creek Northwest                   Bell Creek North LeaseBCNW-083 13m @ 1.15% Ni and 0.03% Co   BCNL-058 18m @ 1.08% Ni and 0.02% CoBCNW-091 10m @ 1.41% Ni and 0.05% Co   BCNL-061  8m  @ 1.04% Ni and 0.02% CoBCNW-092 16m @ 1.15% Ni and 0.07% Co   BCNL-064 10m @ 1.12% Ni and 0.02% CoBCNW-098 18m @ 1.01% Ni and 0.09% Co   BCNL-076 21m @ 0.90% Ni and 0.05% CoBCNW-104 10m @ 1.01% Ni and 0.06% Co   BCNL-084 15m @ 1.66% Ni and 0.01% Co

Results from this current programme, the Minnamoolka results and ongoing drilling programmes will be incorporated in an updated resource estimate for NORNICO which will be undertaken later in the year. Drilling was hampered by the late wet season experienced in the Mt Garnet - Greenvale area.

RC drilling has started at Metallica's Kokomo nickel prospect and at the Six Mile Gold Project, (in JV with Straits Resources).

Contact

Andrew Gillies - Managing Director TEL: +61 7 3891 9611 MOB: +61 416 137 556