Metallica Resources Increases Gold Production

TORONTO, ON - Metallica Resources Inc. reported that gold and silver production at its Cerro San Pedro mine in Mexico increased 56% and 35%, respectively, relative to the third quarter 2007. For the year, the Cerro San Pedro mine produced 26,799 ounces of gold and 406,592 ounces of silver. Approximately 53% of the gold and 48% of the silver were produced in the fourth quarter demonstrating that the mine is on track to achieve full and steady-state production during 2008.
The Cerro San Pedro processing plant operated at 100% capacity in the fourth quarter. The plant is currently producing approximately 200 ounces of gold per day. Roughly 150,000 tonnes of ore are being placed under leach each week.
The mine is expected to produce 80,000 ounces of gold and 1.35 million ounces of silver during 2008 at a cash operating cost, net of silver, of $263/ounce of gold, based on the December 31, 2007 closing price for silver of $14.80 per ounce.
The company's address is Suite 165, 12200 E. Briarwood Ave., Centennial, CO 80112, (303) 796-0229, fax: (303) 796-0265.