Metals Creek Resources Corp. Provides an Update on Its Newfoundland Properties, Including Discovery of High Grade Gold Float on Its Staghorn Property and Completion of Three Airborne Surveys
Metals Creek Resources Corp. (TSX-V: MEK) (the “Corporation”) is pleased to provide the following update on its Newfoundland properties.
Staghorn Option: Assay results were received from recent prospecting on the Corporation’s optioned Staghorn Property located in the Wood Lake area in west central Newfoundland. As previously disclosed, the property consists of 294 claim units (73 sq. km) covering a number of gold showings including a porphyry zone (open intersection of 1.47 g/t Au over 22.5 meters). Results from the property wide prospecting program include gold assays up to 213.8 g/t from angular quartz vein float containing pyrite and arsenopyrite mineralization. The float is located 7 km to the southwest of the porphyry zone and is a good indication of additional gold potential on the claim group. A total of 63 samples were collected with assays ranging from 5 ppb (parts per billion) to 213,800 ppb (parts per billion). As part of the Corporation’s quality and controls and protocols, the high grade sample was re-assayed using the coarse reject from the original sample. This sample re-assayed at 197.7 g/t (grams per tonne). All samples were sent to Eastern Analytical Ltd., an accredited laboratory in Springdale, Newfoundland. The precious metals were analyzed using a standard fire assay with atomic absorption finish. The current prospecting program is following up on regional lake sediment arsenic anomalies serving as path finders for gold mineralization. A second phase of prospecting has been initiated to determine the source of the mineralized high grade float. Results will be made available as they are received and compiled. Work has also been initiated on the Porphyry Zone. Linecutting of a 15 km grid is complete and soil sampling and geophysical surveying will commence shortly.
Tilt Cove Project: The Corporation has entered into a second option agreement for additional claims in the Tilt Cove area of the Baie Verte Penninsula, Newfoundland. As previously disclosed, the Corporation recently acquired rights to a land package totalling 56 claim units in four separate blocks in this area. The new option agreement with a local prospector allows the Corporation to earn a 100% interest in a group of 5 additional claims comprising 22 claims units, covering the south portion of the Betts Cove Ophiolite Suite. Terms of the option agreement include making a series of staged option payments totaling $82,000 and issuing 265,000 shares to the optionors over three years. The optionors will retain a 2% Net Smelter Royalty, 50% of which can be purchased for $1,250,000. This agreement is subject to TSX Venture Exchange approval.
The new claims include the past producing Betts Cove Mine, which had historic production of 132,682 tonnes of Copper Ore at an average grade of approximately 10% Copper. Sampling in 1984 has returned gold assays ranging from 1.6 to 10 g/t Au (Source: Government of Newfoundland and Labrador, Mineral Occurrence Data System, File 002E/13/Au 011). Mineralization consists of massive and stock work style chalcopyrite/pyrite mineralization hosted within the Betts Cove volcanic sequence.
Subsequent to signing the second option agreement, the Corporation completed an airborne geophysical survey (Geotech’s VTEM Survey) over the Tilt Cove Project area which includes both past producers at Betts Cove and Tilt Cove. Results will be available shortly.
Sheffield-Sops Project: An airborne radiometric and magnetic survey has now been completed over the Sheffield Lake/Sops Arm area, located in north-central Newfoundland. This project consists of 1586 claim units in two packages and is a joint venture with Uranium City Resources (TSX-V: UCR), who can earn a 50% interest in the property for expenditures of $1.4 million over 3 years. The claims cover a portion of an extensive felsic volcanic unit interpreted as a collapse caldera complex. This area has seen a high level of exploration over the past two years driven by the discovery of new uranium showings and extensive land acquisition by a number of exploration companies including Bayswater Uranium, Altius Resources and Spruce Ridge Resources. Preliminary results from the Sops Arm portion of the airborne survey have been received and over 50 priority Uranium targets have been identified. Ground follow-up prospecting and sampling has commenced on these targets.
Taylor Brook North: The Corporation recently acquired claims in north central Newfoundland by staking an area called the Taylor Brook North Project. This property, consisting of 200 claim units, is located adjacent to and immediately north of claims owned by Northern Abitibi Mining Corp. Abitibi recently announced (Source: NR (TSX-V: NAI), May 20, 2008) the intersection of high grade nickel consisting of 1.71% Nickel and 0.17% Copper over 4.15 meters. An airborne survey, utilizing Geotech Ltd’s VTEM airborne system, has been completed, and a prospecting program will be initiated once the airborne results are received and priority targets generated.
Wayne Reid, PGeo, Vice President of Corporate Development for the Corporation and a qualified person as defined in National Instrument 43-101, “Standards of Disclosure for Minerals Projects,” is responsible for this release, and supervised the preparation of the information forming the basis for this release.
About Metals Creek Resources Corp.
Metals Creek Resources Corp. is incorporated under the laws of the Province of Ontario, is a reporting issuer in Alberta, British Columbia and Ontario, and has its common shares listed for trading on the Exchange under the symbol “MEK.” The Corporation is engaged in the identification, acquisition, exploration and development of mineral resource properties, and presently has mining interests in Ontario and Newfoundland and Labrador. Additional information concerning the Corporation is contained in documents filed by the Corporation with securities regulators, available under the company’s profile at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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For further information, please contact: Alexander (Sandy) Stares President and CEO Metals Creek Resources Corp Telephone: (709) 256-6060 Fax: (709) 256-6061 Email: Email Contact
SOURCE: Metals Creek Resources Corp.