Metallica Minerals Limited (ASX: ?MML?) is pleased to announce a further increase in its NORNICO nickel resource base to 38.63 million tonnes and early results from the Company?s current drilling programme within the 100% owned tenements in the Mount Garnet ? Greenvale area in north Queensland.

Also, the first nickel resource estimate is expected later this year for the Kokomo deposit within the NORNICO project where extensive exploration continues.

Highlights

• Increased Bell Creek South and The Neck Resource estimates have taken the combined NORNICO Resource up to 38.63 million tonnes (Mt) at 0.73% nickel (Ni) and 0.04% Cobalt (Co) containing approximately 282,000 tonnes of nickel (previously 262,000t Ni). Approximately 92% is in the Measured and Indicated Resource categories, suitable for mining studies. Details of the new resource and relevant JORC categories are tabled below.

• The Bell Creek South nickel Resource has increased by 22% from 9.1Mt @ 0.91% Ni (containing 82,420 tonnes nickel) to 11.42 Mt @ 0.88% Ni (containing 100,580 tonnes nickel) using the same 0.45% Ni cut-off grade. Over 95% of this resource is now within the Measured Resource category. All of this resource is near surface with a maximum depth extent of 45m below surface.
•  The Bell Creek South Measured Resource includes a higher grade core of 7.36 Mt at 1.04% Ni (0.7% Ni cut-off, see Table 1) which will form the foundation of the first 7 years for the proposed 1 Mt per annum heap leach nickel operation. A statement of mining reserves based on the higher grade portions of the five Bell Creek deposits and the Minnamoolka resource is expected to be completed in September.  
• Maiden Ordinary Kriging (OK) block model resource estimate for The Neck deposit is 1.39 Mt @ 0.73% Ni as an Indicated Resource.
•  At the Kokomo deposit, a combined total of approximately 475 holes are scheduled to be completed by end of September and a maiden resource estimate is expected to be released towards the end of the year. To date, approximately 8,500m of RC drilling (250 holes) and 4 PQ Diamond core holes (KKDDH-005 to KKDDH-008) have been completed. The core holes have been drilled to obtain additional geological and bulk density information for the deposit and to provide material for metallurgical testwork.