EX-99.E 6 d28173exv99we.htm MATERIAL CHANGE REPORT DATED AUGUST 22, 2005 exv99we
 

Exhibit E
METALLICA RESOURCES INC.
MATERIAL CHANGE REPORT UNDER SECTION 75(2) OF THE ONTARIO
SECURITIES ACT
     
Item 1.
  Reporting Issuer:
 
    
 
  Metallica Resources Inc.
 
  36 Toronto Street, Suite 1000
 
  Toronto, Ontario M5C 2C5
 
    
Item 2.
  Date of Material Change
 
    
 
  August 16, 2005
 
    
Item 3.
  Press Release
 
    
 
  The press release attached as Attachment “A” was released on CCN Matthews in Canada and on Business Wire in the United States on August 16, 2005 pursuant to section 75(1) of the Act.
 
    
Item 4.
  Summary of Material Change
 
    
 
  Metallica Resources Inc. reports an update of exploration activities and drilling results for its Rio Figueroa copper-gold project located approximately 85 kilometers southeast of Copiapó, Chile. The Rio Figueroa Project totals 74 square kilometers and encompasses a cluster of porphyry copper-gold and epithermal gold occurrences. Drilling in the Cerro Matta area has intercepted 348 meters grading 0.30% copper and 0.30 g/t gold, which included 70 meters grading 0.59% copper and 0.31 g/t gold in one hole and 30 meters grading 0.36% copper and 0.17 g/t gold in another. Further drilling is planned during the coming field season.
 
    
Item 5.
  Full Description of Material Change
 
    
 
  The material change is described in the press release attached as Attachment “A”.
 
    
Item 6.
  Reliance on Section 75(3) of the Act
 
    
 
  not applicable
 
    
Item 7.
  Omitted Information
 
    
 
  not applicable

 

 

     
Item 8.
  Senior Officers
 
    
 
  The following senior officer of Metallica Resources Inc. may be contacted for additional information:
 
    
 
  Mr. Richard J. Hall
Metallica Resources Inc.
c/o Metallica Management Inc.
12200 East Briarwood Avenue, Suite 165
Centennial, Colorado 80112
 
    
Item 9.
  Statement of Senior Officer
 
    
 
  The foregoing accurately discloses the material change referred to herein.
 
    
 
  Dated as of August 22, 2005.
     
 
  /s/ “Richard J. Hall”
 
   
 
  Richard J. Hall
 
  President & Chief Executive Officer

 

 

(PRESS RELEASE LOGO)
ATTACHMENT “A”   Press Release No. 05-10
METALLICA RESOURCES DRILLS SIGNIFICANT PORPHYRY
COPPER-GOLD MINERALIZATION AT ITS RIO FIGUEROA PROJECT,
REGION III, CHILE
Toronto, Ontario — August 16, 2005 — Metallica Resources Inc. (TSX: MR, AMEX: MRB) is pleased to provide an update of exploration activities and results for its Rio Figueroa copper-gold project located approximately 85 kilometers southeast of Copiapó, Chile. The Rio Figueroa Project totals 74 square kilometers and encompasses a cluster of porphyry copper-gold and epithermal gold occurrences. Drilling in the Cerro Matta area has intercepted 348 meters grading 0.30% copper and 0.30 g/t gold, which included 70 meters grading 0.59% copper and 0.31 g/t gold in one hole and 30 meters grading 0.36% copper and 0.17 g/t gold in another. Further drilling is planned during the coming field season.
Metallica first identified the Rio Figueroa property during a regional reconnaissance program to explore for analogs to its El Morro copper-gold project where Falconbridge, formerly Noranda, has delineated an inferred mineral resource of approximately 6.3 billion pounds of copper and 7.5 million ounces of gold contained within 465 million tones of material averaging 0.61% copper and 0.50 grams per tonne gold at a cutoff grade of 0.4% copper. Falconbridge is Metallica’s joint venture partner and has an option to earn a 70% interest in the El Morro project.
At Rio Figueroa, Metallica has completed a systematic evaluation of the property through geological mapping, geochemical sampling and geophysical surveys to identify those areas with the greatest potential for discovery of an economic copper-gold and/or epithermal gold deposit. Based on the results of this work, Metallica has drilled 40 reverse circulation rotary holes totaling 7,475 meters in four different porphyry and epithermal targets. The drilling focused on the Quebrada Contrabando porphyry cluster targeting the Cerro Matta, Quebradas, Rodriguez and Cerro Isla areas. A summary of results from the 2004 -2005 field season is provided below.
Porphyry Copper-Gold Targets
Six porphyry copper-gold targets have been identified to date on the property. Three of these targets, Cerro Matta, Rodriguez and Cerro Isla, were drill tested with 16 holes totaling 5,474 meters. The best results were returned from Cerro Matta. Nine holes totaling 2,884 meters were drilled, with five of these holes intercepting what is considered to be anomalous copper-gold mineralization (>0.10% copper and >0.10 g/t gold) over intervals in excess of 100 meters. Highlights of these results include:
Ø   Hole MRC-09 intercepted 70 meters averaging 0.59% copper and 0.31 g/t gold from 80 to 150 meters in depth and 94 meters averaging 0.37% copper and 0.51 g/t gold from 278 to 372 meters. The hole averaged 0.30% copper, 0.30 g/t gold over 348 meters at a down-hole depth of 52 to 400 meters.

 

 

Ø   Hole MRC-07 intercepted 30 meters averaging 0.36% copper, 0.17 g/t gold within a 432 meter interval that averaged 0.21% copper, 0.21 g/t gold from 12 to 454 meters down-hole.
The mineralization in these holes consists of secondary copper oxides and chalcocite intermixed with primary chalcopyrite and bornite hosted in granodiorite porphyry, quartz-tourmaline breccias and andesite country rock. The mineralized porphyry is exposed over an area of approximately 300 by 900 meters and lies within a larger altered and mineralized zone that is open to the southwest. Exploration during the 2005 — 2006 field season will involve offset drilling to test the continuity of mineralization encountered in holes MRC-07 and MRC-09, and step out drilling to test for potential extensions to the southwest.
Epithermal Gold Targets
Epithermal, or near surface, gold mineralization is hosted in a shallow zone of oxidized sedimentary rocks in the Quebradas area. Mineralization occurs along a major northeast-trending fault system. Twenty-five holes totaling 2,001 meters have been drilled to date, with 12 of these holes intercepting anomalous gold mineralization over intervals ranging from 1 to 17 meters with grades ranging from 0.50 to 3.70 g/t gold. These holes were drilled within a 300 by 250 meter area that remains open to the northeast and southwest. The best hole, QG-02, intercepted 17 meters averaging 1.98 g/t gold and included 8 meters averaging 3.70 g/t gold. Further geochemical and geological work is planned to determine if the Quebradas area merits additional drilling.
“We are encouraged by the results of our initial exploration campaign at Rio Figueroa”, stated Metallica’s President and CEO Richard Hall. “The results of this work indicate the potential for a large porphyry copper-gold system with similarities to that at El Morro and therefore merits continued exploration in the coming field season”.
Metallica holds an option to purchase a 100% interest in the Rio Figueroa property from a private company controlled by the Chilean National Mining Company (ENAMI). Terms of the option include a series of cash payments totaling US$3,500,000 payable over a five-year period and US$1,500,000 exploration expenditure over the first three years of the option term. A 1.5% NSR royalty against any future production from the property will be retained by the vendor. Metallica made the first cash payment to in the amount of US$100,000 in September 2004. The company intends to make a $200,000 option payment in September 2005 and will conduct follow up drilling on the property beginning in late 2005.
A complete listing of drill hole location coordinates and summarized assay results will be provided in Metallica’s Material Change report, which will be available on SEDAR within 10 days of the date of this release. Actlabs Chile S.A. of Coquimbo, Chile has completed all of Metallica’s analytical work for this drilling campaign. The analytical method used is geochemical analysis for the copper and fire assay with atomic absorption finish for the gold analyses. The Qualified Person, as defined by Canadian NI 43-101, responsible for the design and conduct of the work performed is Mark Petersen, Certified Professional Geologist and Exploration Manager for Metallica Resources Inc.
Metallica Resources is a Canadian precious and base metal exploration and development company focused on the Americas. It currently has 82.9 million shares outstanding, approximately US$37 million in cash and cash equivalents and no debt. For further details on Metallica Resources, please visit the Company’s website at www.metal-res.com
ON BEHALF OF THE BOARD OF DIRECTORS
Richard J. Hall
President and CEO, (303) 796-0229, Ext. 304

 

 

THE STATEMENTS IN THIS PRESS RELEASE THAT ARE NOT HISTORICAL FACTS CONTAIN FORWARD LOOKING INFORMATION. THESE STATEMENTS ADDRESS FUTURE EVENTS INVOLVING KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO VARY MATERIALLY FROM PROJECTED RESULTS. THESE RISKS AND UNCERTAINTIES INCLUDE THOSE DESCRIBED IN METALLICA’S FORM 20-F.
The Rio Figueroa drill hole locations and assay summaries from the 7,475 meter 2004-2005 drilling season are summarized below:
                                         
RIO FIGUEROA PROJECT DRILL ASSAY SUMMARY
                            COPPER   GOLD
DRILL HOLE   FROM   TO   INTERVAL   (%)   g/t
 
Cerro Matta Area
                                        
MRC-01
     0       13       13       0.05       0.03  
MRC-01
     13       20       7       0.15       0.04  
MRC-01
     20       32       12       0.07       0.05  
MRC-01
     32       42       10       0.14       0.10  
MRC-01
     42       70       28       0.05       0.05  
MRC-01
     70       82       12       0.12       0.04  
MRC-01
     82       100       18       0.07       0.04  
 
MRC-02
     0       40       40       0.04       0.03  
MRC-02
     40       156       116       0.13       0.06  
MRC-02
     156       216       60       0.12       0.05  
MRC-02
     216       314       98       0.20       0.07  
MRC-02
     314       384       70       0.12       0.06  
 
MRC-03
     0       6       6       0.08       0.12  
MRC-03
     6       56       50       0.14       0.13  
MRC-03
     56       68       12       0.34       0.17  
MRC-03
     68       92       24       0.13       0.10  
MRC-03
     92       104       12       0.32       0.22  
MRC-03
     104       250       146       0.13       0.09  
 
MRC-04
     0       150       150       0.05       0.04  
MRC-04
     150       154       4       0.18       0.35  
MRC-04
     154       250       96       0.02       0.03  
 
MRC-05
     0       106       106       0.06       0.05  
MRC-05
     106       120       14       0.13       0.17  
MRC-05
     120       138       18       0.06       0.08  
MRC-05
     138       178       40       0.13       0.10  
MRC-05
     178       200       22       0.29       0.20  
MRC-05
     200       236       36       0.16       0.07  
MRC-05
     236       300       64       0.25       0.10  
 
MRC-06
     0       200       200       0.02       0.02  
 
MRC-07
     0       58       58       0.23       0.22  
MRC-07
     58       80       22       0.26       0.37  
MRC-07
     80       110       30       0.13       0.12  
MRC-07
     110       140       30       0.32       0.16  
MRC-07
     140       180       40       0.10       0.11  
MRC-07
     180       196       16       0.18       0.29  
MRC-07
     196       240       44       0.23       0.13  
MRC-07
     240       276       36       0.16       0.16  
MRC-07
     276       324       48       0.10       0.12  

 

 

                                         
RIO FIGUEROA PROJECT DRILL ASSAY SUMMARY
                            COPPER   GOLD
DRILL HOLE   FROM   TO   INTERVAL   (%)   g/t
 
MRC-07
     324       350       26       0.22       0.26  
MRC-07
     350       388       38       0.30       0.36  
MRC-07
     388       404       16       0.40       0.37  
MRC-07
     404       442       38       0.26       0.33  
MRC-07
     442       500       58       0.18       0.20  
 
MRC-08
     0       30       30       0.12       0.04  
MRC-08
     30       92       62       0.05       0.04  
MRC-08
     92       106       14       0.13       0.12  
MRC-08
     106       388       282       0.06       0.05  
MRC-08
     388       500       112       0.12       0.04  
 
MRC-09
     0       6       6       0.03       0.18  
MRC-09
     6       18       12       0.04       1.37  
MRC-09
     18       54       36       0.09       0.20  
MRC-09
     54       80       26       0.21       0.09  
MRC-09
     80       136       56       0.64       0.34  
MRC-09
     136       150       14       0.37       0.22  
MRC-09
     150       176       26       0.24       0.29  
MRC-09
     176       206       30       0.10       0.11  
MRC-09
     206       278       72       0.15       0.19  
MRC-09
     278       376       98       0.36       0.50  
MRC-09
     376       400       24       0.14       0.21  
 
Quebradas Area
                                        
QG-01
     0       5       5       0.01       0.70  
QG-01
     5       75       70       0.01       0.02  
 
QG-02
     0       3       3       0.01       0.16  
QG-02
     3       17       14       0.01       2.37  
QG-02
     7       15       8       0.01       3.70  
QG-02
     17       75       58       0.00       0.02  
 
QG-03
     1       3       2       0.04       0.60  
QG-03
     3       75       72       0.01       0.02  
 
QG-04
     0       3       3       0.01       0.13  
QG-04
     3       7       4       0.01       0.71  
QG-04
     5       7       2       0.01       1.09  
QG-04
     7       75       68       0.01       0.03  
 
QG-05
     1       38       37       0.01       0.04  
QG-05
     38       39       1       0.50       0.02  
QG-05
     39       75       36       0.01       0.01  
QG-06
     1       4       3       0.01       0.23  
QG-06
     4       12       8       0.01       0.05  
 
QG-06Bis
     1       4       3       0.01       0.54  
QG-06Bis
     4       24       20       0.01       0.05  
QG-06Bis
     24       26       2       0.58       0.07  
QG-06Bis
     26       75       49       0.02       0.03  
 
QG-07
     0       13       13       0.01       0.05  
QG-07
     13       17       4       0.01       0.19  

 

 

                                         
RIO FIGUEROA PROJECT DRILL ASSAY SUMMARY
                            COPPER   GOLD
DRILL HOLE   FROM   TO   INTERVAL   (%)   g/t
 
QG-07
     17       100       83       0.01       0.03  
 
QG-08
     0       100       100       0.01       0.02  
 
QG-09
     0       100       100       0.02       0.04  
 
QG-10
     0       5       5       0.02       0.06  
QG-10
     5       7       2       0.02       0.14  
QG-10
     7       26       19       0.01       0.06  
QG-10
     26       28       2       0.00       0.12  
QG-10
     28       100       72       0.00       0.04  
 
QG-11
     0       2       2       0.06       0.05  
QG-11
     2       24       22       0.10       0.10  
QG-11
     24       173       149       0.07       0.07  
QG-11
     173       229       56       0.17       0.08  
QG-11
     229       239       10       0.32       0.14  
QG-11
     239       250       11       0.19       0.11  
 
QG-12
     0       6       6       0.02       0.03  
QG-12
     6       9       3       0.01       0.16  
QG-12
     9       13       4       0.01       0.79  
QG-12
     13       75       62       0.01       0.02  
 
QG-13
     0       32       32       0.01       0.05  
QG-13
     32       34       2       0.01       0.51  
QG-13
     34       36       2       0.00       0.07  
QG-13
     36       41       5       0.01       0.14  
QG-13
     41       48       7       0.09       0.07  
QG-13
     48       54       6       0.03       0.25  
QG-13
     54       78       24       0.02       0.04  
 
QG-14
     0       7       7       0.09       0.04  
QG-14
     7       25       18       0.27       0.08  
QG-14
     25       66       41       0.07       0.06  
QG-14
     66       86       20       0.15       0.04  
QG-14
     86       100       14       0.06       0.04  
 
QG-15
     0       18       18       0.04       0.04  
 
QG-16
     0       120       120       0.01       0.02  
 
QG-17
     0       7       7       0.01       1.51  
QG-17
     7       18       11       0.01       0.07  
QG-17
     18       19       1       0.01       0.59  
QG-17
     19       30       11       0.01       0.01  
 
QG-18
     0       3       3       0.01       0.19  
QG-18
     3       10       7       0.01       0.14  
QG-18
     10       14       4       0.01       0.44  
QG-18
     14       30       16       0.01       0.02  
 
QG-19
     0       7       7       0.01       0.06  
QG-19
     7       11       4       0.01       1.27  
QG-19
     11       39       28       0.01       0.02  
QG-19
     39       41       2       0.00       0.61  
QG-19
     41       50       9       0.01       0.03  
 

 

 

                                         
RIO FIGUEROA PROJECT DRILL ASSAY SUMMARY
                            COPPER   GOLD
DRILL HOLE   FROM   TO   INTERVAL   (%)   g/t
 
QG-20
     0       5       5       0.01       3.57  
QG-20
     5       50       45       0.01       0.04  
 
QG-21
     0       4       4       0.05       0.02  
QG-21
     4       6       2       0.01       0.18  
QG-21
     6       50       44       0.01       0.02  
 
QG-22
     0       50       50       0.01       0.00  
 
QG-23
     0       50       50       0.01       0.00  
 
QG-24
     0       42       42       0.01       0.05  
QG-24
     42       44       2       0.02       0.57  
QG-24
     44       100       56       0.01       0.03  
 
QG-25
     0       100       100       0.01       0.01  
 
Rodriguez Area
                                        
RRC-01
     0       14       14       0.12       0.07  
RRC-01
     14       20       6       0.11       0.41  
RRC-01
     20       68       48       0.07       0.09  
RRC-01
     68       112       44       0.11       0.11  
RRC-01
     112       120       8       0.44       0.12  
RRC-01
     120       234       114       0.07       0.07  
RRC-01
     234       238       4       0.13       1.54  
RRC-01
     238       552       314       0.10       0.05  
 
RRC-02
     0       192       192       0.05       0.05  
RRC-02
     192       196       4       0.05       1.24  
RRC-02
     196       310       114       0.05       0.07  
RRC-02
     310       328       18       0.19       0.10  
RRC-02
     328       348       20       0.03       0.07  
 
RRC-03
     0       250       250       0.02       0.04  
RRC-03
     250       256       6       0.08       0.40  
RRC-03
     256       386       130       0.02       0.05  
 
RRC-04
     0       16       16       0.08       0.03  
RRC-04
     16       76       60       0.12       0.03  
RRC-04
     76       80       4       0.06       0.49  
RRC-04
     80       182       102       0.01       0.01  
RRC-04
     182       208       26       0.23       0.01  
RRC-04
     208       222       14       0.07       0.00  
RRC-04
     222       252       30       0.13       0.02  
 
RRC-05
     0       80       80       0.03       0.05  
RRC-05
     80       106       26       0.02       0.15  
RRC-05
     106       246       140       0.05       0.05  
RRC-05
     246       254       8       0.24       0.04  
RRC-05
     254       400       146       0.06       0.06  
 
RRC-06
     0       52       52       0.02       0.06  
RRC-06
     52       68       16       0.05       0.11  
RRC-06
     68       148       80       0.05       0.05  
RRC-06
     148       174       26       0.01       0.16  
RRC-06
     174       252       78       0.01       0.06  
 

 

 

                                         
RIO FIGUEROA PROJECT DRILL ASSAY SUMMARY
                            COPPER   GOLD
DRILL HOLE   FROM   TO   INTERVAL   (%)   g/t
 
Cerro Isla Area
                                        
CIRC-01
     0       400       400       0.04       0.02  
                                                         
RIO FIGUEROA PROJECT DRILL HOLE LOCATIONS  
TARGET   DRILL                             TOTAL              
AREA   HOLE ID     DRILL COLLAR COORDINATES     DEPTH     AZIMUTH     DIP  
            UTM_N     UTM_E     ELEV                          
 
Cerro Matta
   MRC-01     6949642       450482       3443       100       150       -60  
 
   MRC-02     6949671       450461       3445       384       250       -60  
 
   MRC-03     6949968       449806       3653       250       75       -70  
 
   MRC-04     6950232       450403       3527       250       180       -70  
 
   MRC-05     6949874       450157       3462       300       220       -60  
 
   MRC-06     6950943       450403       3654       200       275       -65  
 
   MRC-07     6949410       450056       3741       500       40       -60  
 
   MRC-08     6949063       450320       3664       500       40       -60  
 
   MRC-09     6949375       450199       3660       400       340       -60  
 
Quebradas
   QG-01     6950260       451278       3681       75       20       -60  
 
   QG-02     6950167       451334       3714       75       20       -60  
 
   QG-03     6950259       451368       3714       75       20       -60  
 
   QG-04     6950333       451430       3714       75       20       -60  
 
   QG-05     6950148       451511       3757       75       30       -60  
 
   QG-06Bis     6950228       451537       3756       75       30       -60  
 
   QG-07     6950051       451593       3755       100       140       -60  
 
   QG-08     6950471       451691       3788       100       0       -60  
 
   QG-09     6950662       451446       3805       100       150       -60  
 
   QG-10     6950465       451302       3709       100       120       -60  
 
   QG-11     6950607       451099       3722       250       300       -60  
 
   QG-12     6950281       450907       3570       75       340       -60  
 
   QG-13     6950219       450685       3473       78       340       -60  
 
   QG-14     6949910       450458       3427       100       330       -60  
 
   QG-15     6950120       451315       3712       18       20       -60  
 
   QG-16     6950127       451307       3710       120       20       -60  
 
   QG-17     6950220       451355       3716       30       20       -60  
 
   QG-18     6950305       451400       3712       30       20       -60  
 
   QG-19     6950145       451275       3701       50       20       -60  
 
   QG-20     6950170       451285       3701       50       20       -60  
 
   QG-21     6950130       451215       3681       50       20       -60  
 
   QG-22     6950140       451365       3725       50       20       -60  
 
   QG-23     6950165       451395       3732       50       20       -60  
 
   QG-24     6949910       451325       3708       100       150       -60  
 
   QG-25     6949980       451160       3670       100       350       -60  
 
Rodriguez
   RRC-01     6951000       451100       3785       552       120       -70  
 

 

 

                                                         
RIO FIGUEROA PROJECT DRILL HOLE LOCATIONS  
TARGET   DRILL                             TOTAL              
AREA   HOLE ID     DRILL COLLAR COORDINATES     DEPTH     AZIMUTH     DIP  
            UTM_N     UTM_E     ELEV                          
 
 
   RRC-02     6950830       451185       3845       348       140       -60  
 
   RRC-03     6951035       451470       3944       386       140       -70  
 
   RRC-04     6950375       450835       3563       252       320       -70  
 
   RRC-05     6951165       451315       3890       400       220       -60  
 
   RRC-06     6950730       451310       3821       252       140       -60  
 
Cerro Isla
   CIRC-01     6951000       450665       3645       400       300       -60