Metallica Minerals Limited (ASX:MLM) Quarterly Activities Report For June 2009

Brisbane, Aug 3, 2009 AEST (ABN Newswire) - At completion of the 1 MLM : 22 QOL Scrip Offer on 9 June, Metallica Minerals Limited (ASX:MLM) acquired 71% of Queensland Ores Ltd (ASX:QOL) which holds two very attractive Queensland resource projects; 85% of the Wolfram Camp wolfram (tungsten) and molybdenite mine (currently on care and maintenance) and 100% of the Mt Cannindah copper gold deposit.

Metallica has increased its QOL shareholding to 76% after a A$1.31 million investment in QOL as part of a QOL Rights Issue completed in early July. QOL had A$1.24 million cash at 30 June 2009 and is planning resource confirmation and definition drilling on the Wolfram Camp tungsten and molybdenite project.

Major drilling programme commenced in June on the cobalt rich Kokomo nickel laterite deposit with over 140 drill holes completed to date to increase the existing resource size and status. Impressive intercepts have been recorded including KK663 13m @ 1.93% Ni & 0.63%Co.

Kokomo metallurgical laboratory testwork based on heated AAL for recovery of nickel and cobalt revealed very positive results - indicating 90% extractions of both Ni and Co can be achieved within 5-6 hours using 600 kg/t acid and SO2 addition.

NORNICO Feasibility Study deferred to include the Kokomo deposit (to add resources of high cobalt nickel ores) and complete further metallurgy and enhance process flow sheet development towards maximising metal recoveries and economic efficiency.

Current preferred NORNICO development option going forward is for a 1.0 mtpa project (with onsite acid plant) based primarily on heated agitated atmospheric acid leach (AAL) and solvent extraction/ electrowinning (SX/EW) to produce ~ 10,000 tpa LME Nickel Metal and > 1,000tpa Cobalt as cobalt sulphide.

Cape Alumina Limited (ASX:CBX) (MLM holds 33%) Upgraded its 100% held Weipa Bauxite project - Pisolite Hills bauxite resource to 130Mt (previously 100Mt).

MetroCoal's (84% MLM owned) completed its second drilling programme comprising 16 holes (4,893m) within MDLA 406 "Juandah" confirming the target Macalister Upper Seams continuity and an initial coal resource of 172 Mt suitable for an Underground Coal Gasification (UCG) project in the Surat coal Basin. MDLA 406 has no overlapping pertroleum tenure.

Corporate

Maintaining strong consolidated cash position of approximately A$16.34 million with effectively no debt.

After completion of scrip bid in which MLM achieved a 71% shareholding of QOL, Mr. Andrew Gillies and Mr. David Barwick have joined the QOL Board and Mr. John Haley has assumed the role of QOL's company secretary. Mr. Barwick has been elected Chairman.

In early July Metallica exercised its full entitlement to the QOL Rights Issue and acquired a further 145.3 million shares in QOL for A$1.31 million - MLM now holds 76% of QOL.

Metallica has a strategic shareholding and a convertible note in Brisbane based Queensland Gold & Minerals Ltd (ASX:QGM) and the company, in conjunction with MLM are continuing to seek opportunities suitable for this company.

MLM has entered in to a JV with Salisbury Resources Ltd on three South Australian Gravity High - IOCGU-Olympic Dam style exploration targets (Toby, Torrens & Merna Mora). Drilling of basement rocks over the Toby Anomaly is expected around 8th August.

For the complete Metallica Minerals Quarterly Report for June 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/61184-ASX-MLM-212448.pdf

Contact

Mr Andrew Gillies Managing Director Metallica Minerals Ltd Tel: +61-7-3891-9611