Metallica chooses 2006 drilling targets

Toronto-based Metallica Resources Inc. has identified targets for its 2006 exploratory drilling program on the Alaska Peninsula, according to Mark Petersen, Metallica geologist and exploration manager. Petersen said Metallica is moving forward under a joint venture agreement with Full Metal Minerals Ltd. regarding Aleutian Islands and Alaska Peninsula properties covering a 150 mile section of the Alaskan Peninsula, which are held by Full Metal under an exclusive option agreement with Bristol Bay Native Corp. and Aleut Corp.

For now, Metallica is focusing on numerous lightly explored porphyry copper-gold-molybdenum and epithermal gold-silver prospects known to be on the 2000 square mile land package.

"Our focus is on known occurrences in the coming years on the front end, but as we move forward on this in the coming years we will be getting out and trying to identify new areas," Petersen said in remarks to the Alaska Miners Association 2005 convention in Anchorage.

Metallica's 2005 Alaska Peninsula exploration program consisted of reconnaissance level geologic mapping, geochemical and geophysical surveys, and mechanical trenching. The primary targets were the Unga/Popof epithermal system in the Shumagin Islands; the Pyramid porphyry - last explored by Quintana Minerals Corp. and Duvall Corp. in 1975 and 1976; Deep Creek - last explored by Bear Creek Mining Corp. in the mid to late 1970s; Kawisgag; and two very large porphyry-related alteration zone anomalies at San Diego Bay and Mallard Duck Bay.

Indications promising

The 2005 work has led Metallica to zero in on a handful of targets for drilling that would begin in 2006, including the Shumagin trend and the Apollo header trend, along strike from Apollo-Sitka mines on Unga Island, Petersen said.

"The Shumagin vein has resource calculated on it of about a quarter million tons at a pretty healthy grade - around 17 grams gold," Petersen said. "The Apollo Sitka mine yielded about the same tonnage at a slightly lower grade."

All indications point to a high grade vein potential in the system, Petersen said, adding that Shumagin and Apollo are held by a third party and are not part of the Native land package, but they do demonstrate what might be out there to be discovered.

The Pyramid prospect is a six million year old quartz diorite stock with a 2 square mile phyllic halo and a half square mile potassic core. Drilling in the mid-1970s found gold in the system but it hasn't been thoroughly assessed, Petersen said, adding that while prior drilling focused around the phyllic edges, Metallica's experience at its Chile properties leads it to think most of the gold values will be located in Pyramid's potassic core.

Kawisgag is a seven million-year-old quartz diorite porphyry in a five square mile quartz sulfate stock work system, appearing as a large iron oxide color anomaly, Petersen said. The prospect has never been drilled, he said, adding that the last group in there was Teck Cominco Ltd.

Notable gold, copper signatures at Kawisgag

This season's reconnaissance sampling at Kawisgag showed a notable copper signature with a strong gold signature in the northern area of the system, he said.

Deep Creek will also get a new look by Metallica. Deep Creek is a quartz diorite stock that was drilled by Bear Creek in its 1970s work. Metallica plans to drill Kawisgag soon, Petersen said.

The gold geochemistry essentially clusters on the porphyry at Deep Creek, however gold values from surface sampling are not as high as those seen at Pyramid, Petersen said.

The first of the giants is the Mallard Duck Porphyry cluster, a very large five square mile alteration color anomaly that is also very old, with roof rocks in 20 million to 27 million year-old range, Petersen said.

Likewise, San Diego Bay, north of Sand Point, is a large alteration iron oxide anomaly, he said. Miocene volcanics there are intruded by quartz diorite dikes and plugs.

"Only two drill holes put into it," Petersen said. "It's a very large area that deserves a lot more follow-up."

Alaska attractive

Alaska is a mining friendly state, one of the best in the nation to operate in, Petersen said.

Metallica is finding reason to put some of its ample cash to work in Alaska, although at this time much of the company's spare cash is committed to the Cerro San Pedro gold and silver project located in the State of San Luis Potosi, Mexico, he said.

"The state shows a keen interest and concerted organization to develop the business, and Native owners are motivated to develop their lands," Petersen said.

Metallica is just beginning to grasp the enormity of the Alaska Peninsula property, which Petersen said contains even more prospects, beyond those the company is exploring now.

"There is certainly a lot more regional work - regional geology - to go into pulling this picture together," Petersen said. "It's a very large under-explored part of the Pacific Rim."