MetalCORP Discovers Second High Grade Molybdenum (Mo)-Rhenium (Re) Zone in a Porphyry Rock Unit at Depth; Playter Mo-Re Quartz Vein Also Intersected
THUNDER BAY, ONTARIO–(Marketwire – June 24, 2008) – MetalCORP Limited (TSX VENTURE:MTC) is pleased to announce the discovery of a new, second zone of Molybdenum (Mo) – Rhenium (Re) in a porphyry rock unit at depth. From drill hole 113, the new zone yielded a high grade section of 0.10% Mo, 0.9 g/t Re and 1.0 g/t Silver (Ag) over 11.9 metres (m). This was followed by a barren sheared rock unit (chlorite schist) over 3.5m and then the Playter quartz vein was intersected and assayed 0.09% Mo, 0.8 g/t Re and 2.1 g/t Ag over 10.6m. The entire intersection from 763.6m to 789.6m yielded a high grade of 0.08% Mo, 0.7 g/t Re and 1.3 g/t Ag over a significant width of 26.0m. This hole tested the Mo-Re zones at the deepest point to date of 650m vertical. The true width is approximately 75% of quoted core intersection.
“Hitting this second zone of high grade Mo-Re has significant implications for size and therefore contained Mo-Re on the Playter project” commented Aubrey Eveleigh, Vice President, Exploration and Chief Operating Officer. “The Company is extremely excited with this new development. 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.”
Drill hole 114, located 200m west and designed to intersect the Mo-Re mineralization at a depth of approximately 750m vertical has been recently completed. Assays are pending and are expected to be received from the lab in the next 2-3 weeks.
The Playter 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 500 metre (m) level. To date, in excess of 9,000m of drilling by MetalCORP has shown the Mo-Re deposit to be approximately 750m in strike length, 650m deep with an average true width of approximately 10.0m. The deposit remains open at depth, with a possible 60 degree 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.”
A cross section, 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.
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 degreesC), 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 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 $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 – NI43-101). 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. 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.
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