A maiden resource of 12.2 million tonnes has been announced by Metallica Minerals Limited 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.

Metallica completed a 540 hole drilling program at the Kokomo deposit in October 2008, the data from this drilling and previous drilling by Metallica was used in a maiden resource study for the deposit. The resource study used data from 607 drill holes comprising approximately 18,000 meters of drilling and predominantly sampled at 1m intervals. The drilling was completed on a nominal 40 meters east west by 100 meters north south grid with infill drilling to 20 meters by 50 meters completed over some parts of the deposit. Where infill drilling has been completed, the resource has been classified as indicated.

Metallica also plans to complete further infill drilling in the zones of higher grade nickel cobalt mineralization to improve Kokomo's resource categories from the current Inferred and Indicated to Indicated and Measured. Drilling is also planned for the central and western part of the Kokomo Plateau where zones of high grade mineralization remain open. This work is planned for July or August 2009.

(Sourced from www.miningnews.net)