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| May 27, 2008 |
| MetalCORP; Molybdenum (Mo)-Rhenium (Re) Bearing Quartz Vein Continues to Grow in Size; New Drill Holes Extend Mo-Re Mineralization to Depths Beyond 500m Level |
THUNDER BAY, ONTARIO--(Marketwire - May 27, 2008) - MetalCORP Limited (TSX VENTURE:MTC) is pleased to announce the latest results of drilling on its 100% owned Molybdenum (Mo) - Rhenium (Re) bearing quartz vein called the Playter Project. The project is located in Northern Ontario, Canada, approximately 20km southwest of the Hemlo gold deposit, on the western end of the Company's Big Lake property. This drill program was designed to test this large Mo-Re bearing quartz vein along strike (to the east and to the west) and at a depth beyond the 300 metre (m) level. To date, in excess of 8,000m of drilling by MetalCORP has shown the Mo-Re deposit to be 750m in strike length, 550m deep with an average true width of approximately 7.0m. The deposit remains open at depth, with a possible plunge to the west.
W. David Sinclair, a geologist with the Geological Survey of Canada recently stated "Based on the reported Mo and Re assays - averaging about 0.1% Mo and 1.0 g/t Re - the rhenium content of the molybdenite should be about 600.0 g/t Re. This would make it potentially the largest vein-type deposit in Canada ... ... ... and possibly one of the largest in the world of this type. It is a remarkable deposit."
The latest drilling shows the Mo-Re-Ag bearing quartz vein growing in size with the deepest drill hole to date, #109, intersecting high grade mineralization yielding 0.15% Mo, 1.2 g/t Re and 3.8 g/t Ag over 3.7m at approximately the 550m level. Hole #108, drilled on the same section but at the 450m level also intersected a high grade section assaying 0.09% Mo, 1.4 g/t Re and 2.8 g/t Ag over 6.0m. On a section located 300m west of holes 108 and 109, drill hole #91 intersected 0.13% Mo, 0.4 g/t Re and 9.2 g/t Ag over 3.6 metres at the 400m level. On a section located 300m east of holes 108 and 109, drill hole #107 yielded 0.11% Mo, 1.3 g/t Re and 4.6 g/t Ag over 2.0m. On this same section but at the 200m level, drill hole #102 intersected 0.08% Mo, 1.1 g/t Re and 2.9 g/t Ag over 1.3m.
"Hitting this high grade Mo-Re bearing quartz vein at greater depths clearly demonstrates the considerable size of this mineralized system. We are very encouraged with the latest drill results and excited with the continued drilling on the Playter Project" commented Aubrey Eveleigh, Vice President, Exploration and Chief Operating Officer. "Given the strong market demand for molybdenum and rhenium, the Playter Project has become one of the most valuable assets in MetalCORP's portfolio of properties."
Holes 93, 94 and 95 were drilled on the extreme western end of the Mo-Re bearing quartz vein. These holes intersected mineralization which yielded 0.02% Mo & 0.2 g/t Re over 1.2m, 0.09% Mo & 1.1 g/t Re over 0.4m and 0.05% Mo & 0.4 g/t Re over 1.2m respectively. Although they all intersected Mo-Re mineralization, the drill holes encountered parallel zones hosted in quartz-feldpsar porphyry and chlorite schist unlike the traditional quartz vein previously reported. More interpretation and drilling is needed in this area to fully understand the geological setting to determine if the Mo-Re bearing zone can be extended at the western end of the project. The same can be said for hole #103 drilled on the eastern extremity which yielded 0.04% Mo & 0.3 g/t Re over 1.1m in a siltstone unit. Hole 104 failed to intersect any significant values of Mo or Re with assays pending for holes 106, 110, 111 and 113.
A table, plan map and longitudinal section showing all MetalCORP and historical drill holes can be viewed at the Company website www.metalcorp.ca under the Playter Moly property. The Company has also posted a presentation on the Playter project at the home page of the Company website. The Playter drill program is continuing to outline the full extent of the Mo-Re-Ag mineralization. Also, the Company is in the planning stages of a bulk sampling program to eventually examine various characteristics of the Molybdenite concentrate, including flotation.
MetalCORP is considering seeking technical and financial assistance from a strategic partner with a keen interest in developing this very important Mo-Re asset. The Company has been in preliminary discussions with several interested parties in the last few weeks and plans to continue to aggressively pursue the right strategic partner to bring the Playter project to the feasibility stage.
Molybdenum is used as an alloying agent in steel to enhance strength and resistance to wear and corrosion. It is also used in lubricants developed for high temperature and pressure applications. There are no known substitutes for molybdenum's unique properties, which is used in most of the present day super-alloys. The price of molybdenum oxide has increased from $3/lb to over $35/lb over the last couple of years due to the strong demand and short supply.
Rhenium is a rare metal with unique characteristics, including an ultra-high melting point (3,186 degrees C), and is becoming a vital part of the aerospace industry. Demand for Rhenium continues to grow as environmentally friendly airplane engines become more popular. The metal is mainly used in high temperature super-alloy turbine blades in jet engines, land based gas powered turbines and petroleum-reforming Platinum-Rhenium catalysts. Demand as a catalyst is also expected to increase over the next few years in areas such as technology that converts gas to liquid to transport Liquid Natural Gas (LNG) to markets around the world. Recently, the United States of America Department of Defense as deemed Rhenium a strategic and critical mineral because of its use in the high temperature jet engines used in the stealth aircraft. The price of the rhenium has increased from approximately $500/lb to approximately $5200/lb in the last couple of years due to short supply and strong demand.
Exploration on the Playter Project is carried out under the supervision of Aubrey Eveleigh, P.Geo. (QP - NI43101). MetalCORP samples are sent to ALS Chemex Labs for analysis by ICP-AES.
MetalCORP is a mineral exploration company based in Thunder Bay, Ontario with base metal and gold projects in the Canadian Shield of Northern Ontario, Canada, one of the most prolific mineral districts in the world. The projects, with an area of more than 35,000 Ha (86,000 acres), include the Big Lake copper-zinc-silver-gold property, the North Rock diamond and copper-nickel-platinum property, the new Python nickel-copper-zinc property and the new Fearless zinc-copper-gold property, all of which are under active exploration. MetalCORP's four gold projects, with a claim area of more than 20,000 acres, include the Dorset, Pickle Lake, Black Bear and Keezhik Lake properties. By identifying early stage properties that may be enhanced by exploration, MetalCORP's experienced management team has assembled a great portfolio of projects.
MetalCORP has 44,216,636 common shares outstanding and approximately $4,000,000 in cash and no debt. To find out more about MetalCORP Limited (TSX VENTURE:MTC), visit our website at www.metalcorp.ca. The statements used in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's forward-looking statements and expectations.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. | |
| CONTACT INFORMATION:
MetalCORP Limited
Mr. Aubrey Eveleigh, P.Geo
COO & VP Exploration
(807) 346-2760
Website: www.metalcorp.ca
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| INDUSTRY: Manufacturing and Production - Mining and Metals | |
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