MetalCORP Limited
TSX VENTURE : MTC

MetalCORP Limited

June 17, 2008 09:19 ET

MetalCORP & Kennecott (a Rio Tinto company) Sign Letter of Intent on GUP Diamond Project Located 300km West of Thunder Bay, ON, Diamond Bearing Rock Unit Extends for Several kms

THUNDER BAY, ONTARIO--(Marketwire - June 17, 2008) - MetalCORP Limited (TSX VENTURE:MTC) is pleased to announce a Letter of Intent 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.

Once a formal agreement has been signed, Kennecott has the right to earn a 51% interest in MetalCORP's GUP Diamond Project by making cash payments of $375,000 and incurring expenditures of $4,000,000 over four years. A cash payment of $55,000 is due on signing and a firm commitment of $350,000 is to be spent in the first fifteen months. Kennecott may earn an additional 24% by spending a minimum of $700,000 per year starting in year five and by making cash payments to MetalCORP of $50,000 starting in year five, increasing by 10% per year, until a feasibility study is delivered to MetalCORP. The agreement will give Kennecott the right to explore for, develop and mine diamonds and leave MetalCORP with the right to explore for, develop and mine all other base metals and precious metals on the Property.

"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 in the last few years" commented Aubrey Eveleigh, Vice President, Exploration and Chief Operating Officer. "The Rio Tinto group recognizes the importance of exploration has a contributor to their growth. Their financial and technical resources will be a significant asset to the exploration and development of the GUP diamond project."

On 5 February 2008, MetalCORP announced a significant new diamond discovery in an area not previously known to contain diamonds. The GUP diamond project is a part of MetalCORP's North Rock property which consists of approximately 15,000 acres, 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.

Exploration on the GUP diamond project was carried out under the supervision of 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 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 which hosts the BL14 copper-zinc-silver-gold property and the playter molybedium-rhenium 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 $3,000,000 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