MetalCORP Limited
TSX VENTURE : MTC

MetalCORP Limited

September 17, 2008 08:59 ET

MetalCORP Contracts SGS Lakefield to Process Mini-bulk Sample for Metallurgical Testing and Hires AMEC to Prepare a Resource Calculation on Playter Molybdenum-Rhenium Deposit

THUNDER BAY, ONTARIO--(Marketwire - Sept. 17, 2008) - MetalCORP Limited (TSX VENTURE:MTC) is pleased to announce that SGS Lakefield Research Limited ("Lakefield") has been contracted to carry out a scoping level metallurigical testing on a mini bulk sample (200kg) of the Playter Molybdenum - Rhenium deposit. The Lakefield testing will consist of chemical and mineralogical characterization, material hardness, grade and flotation to determine maximum recovery of Molybdenum (Mo), Rhenium (Re) and Silver (Ag) concentrate. The concentrate recovery and grade produced would be indicative of what could be expected from a commercial mining facility. The report from Lakefield is expected within the next 3-4 weeks.

MetalCORP is also pleased to announce the hiring of AMEC Americas Limited ("AMEC") to prepare a mineral resource technical report (43-101) to determine an inferred resource on the Playter Mo-Re-Ag deposit. Among other activities, AMEC staff will be required to visit the Playter site and review MetalCORP data to verify quality assurance / quality control protocol. A report from AMEC is also expected within the next 3-4 weeks.

"This is a very significant step in the evolution of the Playter deposit. It is important, at this point, to obtain metallurgical data and a resource size calculation in order to proceed to a feasibility stage. It is also worth noting that the Playter Mo-Re-Ag deposit still remains open at depth" commented Aubrey Eveleigh, Vice President, Exploration and Chief Operating Officer. "The Company is extremely excited with these latest developments and it shows that the Playter deposit has come a long way in the last twelve (12) months. Given the strong market demand for molybdenum and rhenium, the Playter Project has become the most important and valuable asset in MetalCORP's portfolio of properties."

The Playter deposit 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. The deposit, which remains open at depth, measures 700 metres in an east-west strike length and has been drilled to a depth of 650 metres. The Mo-Re-Ag bearing quartz vein, with a specific gravity of 2.72, averages 7.0 metres wide and plunges 60 degrees to the west.

A table of drill holes, cross section, plan map and longitudinal section showing all MetalCORP and historical drill holes can be viewed at the Company website under the Playter Mo-Re property. The Company has also posted a presentation on the Playter deposit at the home page of the Company website www.metalcorp.ca.

Exploration on the Playter deposit is carried out under the supervision of Aubrey Eveleigh, P.Geo. (QP - NI43-101). MetalCORP samples are sent to ALS Chemex Labs for analysis by ICP-AES.

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 $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 natural gas to liquid to transport Liquid Natural Gas (LNG) to markets around the world. Recently, the United States of America Department of Defense has deemed Rhenium to be 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 $6000/lb in the last couple of years due to short supply and strong demand.

Lakefield is recognized as a world leader in the development and demonstration of bankable flowsheet and pilot plant programs having practical metallurgical experience with all metals. Lakefield was founded half a century ago to meet the mining industry needs in Canada. It has since gone on to provide a full range of metallurigical services for mining projects around the world.

AMEC is a focused supplier of high-value consultancy, engineering and project management services to the metals or mineral mines, offshore oil and gas facilities and the world's energy, power and process industries. AMEC can provide complete design services for every aspect of mine and mineral plant development, including underground and open pit mines, material handling systems, mills, process plants, refineries, tailings facilities and backfill plants, plus ancillaries and infrastructure such as roads and airstrips, accommodation and office complexes, laboratories and utilities. In the last 50 years, from initial exploration to reclamation, AMEC has provided unsurpassed insight and experience in every facet of the mining industry on projects in 80 countries. With annual revenues of over Pounds Sterling 2.3 billion, AMEC employs over 23,000 people in more than 30 countries globally, with major offices in Canada, United Kingdom, United States of America, Peru and Chile.

MetalCORP is a mineral exploration company based in Thunder Bay, Ontario with mineral projects in the Canadian Shield of Northern Ontario, Canada, one of the most prolific mineral districts in the world. The projects covering more than 35,000 hectares (86,000 acres) include the Big Lake copper-zinc property, the North Rock diamond and copper-platinum property, the new Python nickel-copper-zinc property and the new Fearless zinc-copper-gold property, all of which are under active exploration. 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 46,291,636 common shares outstanding and approximately $3,500,000 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 Company assumes no obligation to update such forward-looking statements.

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