Metallica Minerals Limited (ASX:MLM) Initiates Environmental Impact Study For The Proposed Development Of Urquhart Point Zircon-Rutile Sands Project

Sydney, Mar 21, 2011 AEST (ABN Newswire) - Metallica Minerals Limited's (ASX:MLM) wholly-owned subsidiary, Oresome Australia Pty Ltd, advises that it has commenced the permitting and statutory approval process for its Urquhart Point Heavy Mineral Sands (HMS) Project in Cape York, Queensland, with the release of the Draft Terms of Reference (TOR) for the project's Environmental Impact Study (EIS), together with its Initial Advice Statement (IAS).

The Urquhart Point HMS Project, with its zircon-rutile rich sands exposed to shallow depths (<3m depth), will comprise the development of the zircon and rutile sand resource to produce a zircon and rutile concentrate for export and possibly domestic markets.

The Urquhart Point deposit, which is covered by Mining Lease Application (MLA) 20699, is located in Far North Queensland, approximately 5 kilometres southwest of the Weipa Township, 75 km north of Aurukun. The Urquhart Point zircon and rutile resource within the MLA is an Indicated Resource of 2.8 million tonnes @ 7% Heavy Mineral Sands (HMS) to a maximum depth of three metres.

The HMS deposit (which has very low slimes ~2%) typically contains approximately 20% zircon and 27% titanium-bearing minerals, predominantly rutile.

Oresome's General Manager, Stewart Hagan said: "This is an exciting stage for the company as it is the start of the formal process moving towards the grant of a mining lease, followed by proposed development and production."

"We are working closely with Traditional Owners and the Aurukun Shire Council to ensure this project delivers positive outcomes for all concerned," he said.

The draft TOR and an initial advice statement describing the project are available on the Department of Environment and Resource Management website http://www.derm.qld.gov.au.

Copies can also be obtained from Oresome Australia by calling (07) 3249 3000 or emailing admin@metallicaminerals.com.au.

Contact

Andrew Gillies Managing Director Metallica Minerals Limited Tel: +61-07-3249-3000 Mr Stewart Hagan General Manager Oresome Australia Pty Ltd Fax: +61-7-3249-3001 Email: admin@metallicaminerals.com.au http://www.metallicaminerals.com.au