Metallica Minerals (ASX:MLM) Updates On Phase 2 Drilling At Greenvale Nickel-Cobalt Project (Qld)

Brisbane, Nov 9, 2010 AEST (ABN Newswire) - A second phase of drilling has commenced at Metallica Minerals's (ASX:MLM) wholly owned Greenvale nickel-cobalt mine site approximately 170km NW of Townsville in northern Queensland. The drilling is aimed at identifying additional Nickel-Cobalt resources outside the current resource boundaries. To date 175 RC and Aircore holes have been drilled at Greenvale for 4,000m of which assay results have been received for the first 100 holes (GVM418 to 517). Better results received to date include:

The Power Line:

GVM 425, 11m @ 1.25% Ni and 0.09% Co (1.43% NiEq1)from 22m

GVM 432, 8m @ 1.49% Ni and 0.14% Co (1.77% NiEq) from 36m

GVM-434, 10m @ 1.53% Ni and 0.04% Co (1.61% NiEq) from 35m

GVM-440, 11m @ 2.00% Ni and 0.17% Co (2.34% NiEq) from 39m

The Powder Magazine

GVM-448, 14m @ 1.28% Ni and 0.11% Co (1.50% NiEq) from 3m

GVM-451, 6m @ 0.87% Ni and 0.37% Co (1.61% NiEq) from 2m

Moonscape

GVM-472, 5m @ 1.58% Ni and 0.07% Co (1.72% NiEq) from 0m

GVM-475, 8m @ 1.22% Ni and 0.28% Co (1.78% NiEq) from 2m

GVM-495, 16m @ 1.22% Ni and 0.44% Co (2.10% NiEq) from 0m

GVM-503, 14m @ 1.39% Ni and 0.13% Co (1.65% NiEq) from 23m

GVM-507, 8m @ 2.63% Ni and 0.17% Co (2.97% NiEq) from 2m

The Phase 2 drilling is concentrated on the two main zones of high grade Ni - Co mineralisation (The Power Line and The Edge) identified by the Phase 1 drilling completed in July this year. Holes are also being drilled at the Moonscape and Powder Magazine areas where initial drilling has intersected high grade Ni-Co mineralisation close to the surface.

Scandium values for the holes drilled at Greenvale in the Phase 2 drilling program have returned values of between 20-50 g/t Sc and average approximately 35 g/t.

A complete list of drill hole results for holes GVM-418 to 517 is provided in Table 3 (see link at the bottom of the release) at the back of this report and the location of the holes at Greenvale to date are included.

The current Greenvale Indicated and Inferred resource stands at 4.5Mt @ 1.12% Ni and 0.08% Co (1.28% NiEq) with a higher grade zone of 1.43Mt at 1.39% Ni and 0.11% Co (1.61 % NiEq), see Tables 1 and 2 (see link at the bottom of the release) for the breakdown of the resource categories. The Phase two drilling is targeted at potentially increasing the current resource by between 1Mt to 1.5Mt at comparable grades.

In addition to the RC drilling at Greenvale, Metallica has also completed six PQ diamond drill holes for 189m at the Greenvale and Lucknow deposits. The diamond holes were drilled to obtain samples for bulk density determinations, metallurgical testwork and XRD and petrological studies. It is likely that with the additional bulk density data received from the diamond drilling, the resources which were previously classified as Indicated may be reclassified as Measured in the updated resource estimate due out in mid December.

Future Work

Work planned for Greenvale to the end of 2010 includes:

- Drilling an additional 150 holes for 4,000m

- Survey pick up of all Phase-2 drill holes

- Survey of existing pit outlines

- Greenvale and Lucknow resource update

For the complete announcement including figures, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/64129-ASX-MLM-226003.pdf

Contact

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