MAJOR RESOURCE BOOST FOR QUEENSLAND NICKEL PROJECT 

�        First resource estimate for 3rd NORNICO deposit

�        Total combined total resource 30% higher

A maiden resource of 12.2 million tonnes has been announced by Metallica Minerals Limited (ASX coded: "MLM") for one of the key deposits within the Company's flagship nickel and cobalt project in north Queensland.

The JORC estimate is the first for the Kokomo nickel-cobalt deposit which lies centrally within Metallica's NORNICO project area, northwest of Townsville.

Combined with existing resource estimates for the project's nearby Bell Creek and Minnamoolka deposits, the new Kokomo contribution has lifted NORNICO's total resource estimate to 50.8 million tonnes.

The Kokomo resource estimate identified an Inferred and Indicated mineral resource of 12.2 Mt @ 0.67% Ni and 0.12% Co, (using a 0.70% Ni Eq � � cut-off grade). The resource is based on results from 607 drill holes, with the mineralised zone interpreted around the drill holes, digitized and a wire-frame model constructed. The wire-frame model was filled with 10m x 10m x 1m blocks, and values for the blocks estimated by Ordinary Kriging, (OK).

The Kokomo resource was completed independently by Golder Associates Pty Ltd of Brisbane and has been prepared using JORC guidelines. Within the resource are higher grade nickel - cobalt zones which are expected to be amenable to selective mining.  

 The full announcement can be viewed by clicking here.