MetalCORP Limited
TSX VENTURE : MTC

MetalCORP Limited

December 22, 2008 08:22 ET

MetalCORP and Kennecott (a Rio Tinto company) Sign Agreement on the GUP Project Located 300km West of Thunder Bay, Ontario, CANADA

THUNDER BAY, ONTARIO--(Marketwire - Dec. 22, 2008) - MetalCORP Limited (TSX VENTURE:MTC) is pleased to announce the signing of an option agreement with Kennecott Canada Exploration Inc. ("Kennecott"), an indirect wholly-owned subsidiary of Rio Tinto plc (LSE:RIO), a leading international mining group headquartered in London, UK.

Kennecott has the right to earn 51% interest in MetalCORP's GUP project by making cash payments of $500,000 and incurring exploration expenditures of $6,500,000 over five (5) years. A cash payment of $55,000 is due on signing and a firm commitment of $350,000 is to be spent on exploration before September 30, 2009. Kennecott may earn an additional 24% by spending a minimum of $700,000 per year on exploration or feasibility study costs starting in year six (6) until a feasibility study is delivered to MetalCORP. Kennecott must also make cash payments of $50,000 starting in year six (6), increasing by 10% per year, until the feasibility study is complete. The GUP project agreement includes the North Rock and Cousineau mining claims and rights to all commodities (diamonds and base or precious metals).

"MetalCORP is excited about partnering with such an important and well respected world leader in the mining industry. With their technical expertise, Rio Tinto has shown an exceptional track record of exploration success" commented Aubrey Eveleigh, Vice President, Exploration and Chief Operating Officer. "The Rio Tinto group recognizes the importance of exploration as a contributor to their growth. Their financial and technical resources will be a significant asset to the exploration and development of the GUP project."

On 5 February 2008, MetalCORP announced a significant new diamond discovery on the North Rock and Cousineau claims in an area not previously known to contain diamonds. The GUP project, which consists of 15,000 acres (6,000 hectares), is located 300km west of Thunder Bay or 25km east of Fort Frances, Ontario. Significantly, the diamonds are hosted in a large rock unit known as the Grassy Ultramafic Pyroclastic (GUP) which extends for several kilometers across the property.

A 100kg sample recovered by MetalCORP was processed by Kennecott Canada Exploration Inc. in their Mineral Processing Laboratory, located in Thunder Bay, Ontario by using the caustic fusion procedure. A total of six diamonds were recovered with one (1) sitting on the 0.212mm sieve. Three (3) other diamonds were on the 0.106mm sieve, while two (2) more were less than the 0.106mm sieve size. A powerpoint presentation on the GUP diamond discovery can be viewed at the Company website www.metalcorp.ca.

These initial results are from a single 100kg grab sample of an outcrop from a large prospective diamond bearing rock unit. The ultramafic rock (pyroclastic & flow) unit has been mapped for approximately 16km in length and up to 1km wide with a distinctive magnetic high anomaly. In order to fully assess the potential of this rock unit a more thorough and rigorous sampling program is needed.

The GUP project is also host to a small copper deposit called the Beaver Pond and several new platinum and copper discoveries. One drill hole intersected a 3.7 metre zone grading 12.2 g/t platinum. Another drill hole intersected 46.0 metres of 0.9% copper.

Exploration on the GUP project was carried out under the supervision of Aubrey Eveleigh, P.Geo. and Kevin Kivi, P.Geo. of KIVI Geoscience Inc. (QP - NI43-101). MetalCORP samples were sent to Kennecott's Mineral Processing Laboratory (ISO 9001:2000 Certified) in Thunder Bay for caustic fusion analysis.

MetalCORP has 46,306,636 common shares outstanding and approximately $1,500,000 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 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