Metallica consolidated their position at Cerro San Pedro by acquiring the piece controlled by Glamis and are now ready to rock-and-roll.

Metallica Resources Inc.   MR   (TSX) and METLF (NASDAQ OTC Bulletin Board)

Cerro San Pedro Project, SLP a 340 ha advanced Au-Ag property is primary asset in Mexico. Teamed up with Cambior Inc. in late 1997 for the development the Cerro San Pedro Mine in 1999 through their jointly-owned (50/50 participating interest) company Minera San Xavier S.A. de C.V. Cambior subsequently sold its 100 % interest in Cambior de Mexico, S.A. de C.V., Cambior's Mexican holding company, to Glamis Gold Ltd. in May, 2000. Glamis has also purchased from Cambior a crusher system originally acquired by Cambior for use at Cerro San Pedro. Cambior received cash proceeds of $9.5 million from Glamis of which $7 million is attributed to the shares of Cambior de Mexico and $2.5 million to the crushing plant. Cambior de Mexico's assets include 50 % of Minera San Xavier, S.A. de C.V., which owns Cerro San Pedro and all other assets of Cambior Mexico (i.e. Metates etc.). Proceeds from the sale will be used to reduce Cambior's obligations to its financial creditors.

Press Release 9May00

Glamis Gold's purchase of Cambior de Mexico resulted in Glamis being the operator and also owning 50 percent of the project. At a gold price of $275 per ounce and a silver price of $5.00 per ounce, the project has a 14.4 percent rate of return before financing costs. The following table summarizes the results of the feasibility study:

Cerro San Pedro Project -- Revised Feasibility Model

Price of gold per ounce                                      $275
Price of silver per ounce                                     $5.00
Life of mine 8 years
Average ounces Au equivalent (AuEq) / year     108,800
Average tonnes ore per year                              6,156,000
Waste:Ore strip ratio                                         1.45:1
Initial capital requirements                                  $44.5 million
Total cash cost per AuEq ounce                         $169
Total cash cost per ounce (Ag credit)                 $129
IRR (without financing charges)                          14.4%
NPV at 5% (without financing charges)               $18.6 million

Metallica and Glamis have agreed to continue limited development of the project pending commodity price improvements. During 2001, total spending on Cerro San Pedro is budgeted at $1.77 million. The major 2001 activities will include completing the relocation of the village of La Zapatilla, structural stabilization of the San Pedro Apostle Church, establishment of the mine site office for future operations, andcontinued compliance with existing permits and regulations. At year end, Glamis will be required to invest approximately $1.85 million to maintain its 50 percent interest in Cerro San Pedro. The earn-in will fund the on-going budgets and work plans.

Press Release 12Dec00

Metallica picked up additional 9,047 hectares surrounding CSP property from Newmont (Sante Fe Pacific Gold) in August 1997. Bill Dodge was appointed manager of Cerro San Pedro Project. Final positive bankable feasibility received Feb. '97 from Kilborn-SNC Lavin of Denver defined possible open-pit mining of 10 MT/yr at stripping ratio of 1.47:1 and annual Au production of 150,000 oz along with 4 million oz Ag. Total drilling to date is 215 holes totaling over 49,000 m. Engineering pit design modified to accommodate preservation of village and two historic churches built in the XVII and XVII centuries. Proven and probable mining reserves as of 1Q00 stand at 60 M tonnes at 0.62 gpt Au and 24.5 gpt Ag representing 1.3 Moz Au and 50.1 Moz of Ag. Reserves were calculated using long-term price assumptions of $300 Au and %5.50 Ag. 

Permits and project financing were expected by year-end '98 with development and production during 1999. Manifestacion de Impacto Ambiantal (MIA or Environmental Impact Permit) was approved on 3/15/99. Received Land Use Permit in May, 2000.  Now only minor local permits are needed prior to the initiation of mine construction. Estimated capital cost of $70M dollars. Annual production target at 110,000 oz Au and 2.6 M oz Ag Pit design. 

Metallica purchased Minera San Xavier S.A. de C.V. on Apr. 6, 1995. Initial pre-feasibility proven & probable reserves calculated Feb 29, 1996. Mineable Reserves as of Jan. 1999 stood at 55.8 M tonnes of 0.57 gpt Au and 21.8 gpt Ag (or 0.95 gpt Au equivalent.) at a strip ratio of around 0.8-to-1.  Favorable economics strongly influenced by good leach characteristics of low-grade ore. 

Press Release 9May00
Press Release 8May00
Randol Conference Jan99
CMH 1998-1999
MBD December, 1997
NMN v83# 03/10/97
Corporate Profile Data: March 1, 1996
NMN v52#50 2/10/97
MBD February, 1997
Daily Mining News 19Dec96
LAMR December, 1996
Randol Mexico Mining '97 Exhibitor
NMN 11/18/96
PointCast 8Nov96