December 23, 2009

MetalCorp Reports Encouraging Results of Drilling on the Tarp Lake Zone, Pickle Lake Gold Property, Northwestern Ontario

  • Broad widths of mineralized and altered tarp lake zone rocks intersected in all holes
  • Zone extended to depth of at least 250 metres and along strike to 550 metres
  • Intersections range up to 1.12 g/t gold over 17.3 metres, including 2.6 g/t gold over 4.5 metres

Toronto, Canada (December 23, 2009) - MetalCorp Limited (TSX-V:MTC) is pleased to announce the results of its drilling program at the Tarp Lake Zone on the northern part of its 100%-owned Pickle Lake property. A total of seven drill holes were completed for a total of 2264 metres of drilling, and all holes intersected broad zones of highly anomalous precious and/or base metals (see Table 1 below). Mineralization occurs mainly as disseminations of pyrite and stringers of pyrrhotite, but local semimassive to massive pyrite also occurs locally. The sulphides are typically hosted by well foliated chlorite-carbonate-(sericite) altered and locally silicified mafic and local felsic metavolcanic rocks.

Table 1 - Select drill results - Tarp Lake Zone, north Pickle Lake Property

Hole No. Grade Width (m) Depth (m)
PL09-31 1.12 g/t Au 17.25 108.5
  0.36 g/t Au 11.9 195.5
PL09-32 0.409 g/t Au 6.55 52.5
  633 ppm Cu 22.5 222.5
PL09-33 0.222 g/t Au 17.95 254
  0.139 g/t Au 8.65 232
PL09-34 0.2% Zn 13 109
  2.26 g/t Ag 13 109
PL09-35 0.391 g/t Au 8.5 126.5
  10.53 g/t Ag 1.5 298.9
PL09-36 0.759 g/t Au 3.5 111.4
  619 ppm Cu 18.3 160.7
PL09-37 6.7 g/t Ag 8.4 160

Sulphide content generally increases southerly in the holes drilled in this program, and this heavier sulphide mineralization is typically pyrrhotite-dominant and more base metals- and silver-rich, as opposed to pyrite-dominated disseminated styles that are more gold-rich in the north.

In previous work at the Tarp Lake Zone in the mid-1990s by Inmet, values of up to 7.2 g/t Au over 4.6 metres and 1.4 g/t Au over 36 metres were returned. The present program followed-up and extended the zones intersected by Inmet, which mainly targeted Induced Polarization (IP) geophysical anomalies.

"Our findings suggest that a mineralizing system of significant extent exists on the property and its full extent remains to be tested," commented Charlie Greig, VP Exploration. "Our geologists are encouraged by the width of the intersections and the overall size of the mineralizing and accompanying alteration system." Geophysical surveys are planned for early 2010, and diamond drilling may be undertaken if the results of the survey results are encouraging.

In addition, other parts of the property show good potential for shear zone hosted vein gold deposits, and perhaps at depth for iron formation-hosted gold deposits similar to those mined at the nearby Pickle-Crow deposit. The Tarp Lake area of MetalCorp's Pickle Lake property is located beside an all-weather road, approximately 15 km north of the past-producing Pickle Crow Mine near Pickle Lake, Ontario.

MetalCorp's geological team worked in cooperation with the Mishkeegogamang First Nation on the diamond drilling program and the Company looks forward to continuing its relationship in the future.

Charles Greig, P. Geo., is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101. Assay results are from core samples sent to ALS-Chemex Laboratories, an accredited mineral analysis laboratory, for preparation and analysis.

MetalCorp is a mineral exploration company based in Thunder Bay, Ontario with gold and base metal projects in the Canadian Shield of Northern Ontario, Canada, one of the most prolific mineral districts in the world. The projects, with a total area of more than 85,000 acres, include the Hemlo East property, the Big Lake copper-zinc-silver-gold property, the North Rock copper-nickel-platinum property, and the Dorset, Pickle Lake, Black Bear and Keezhik Lake gold properties.

MetalCorp has 56,349,471 common shares outstanding and approximately $2,000,000 in cash and no long-term debt.  

For further information, please contact:
Naomi Nemeth, President and CEO
T: +1 416-903-0811
E: naomi(dot)nemeth(at)metalcorp(dot)ca

Note: Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Except for statements of historical fact contained herein, the information in this press release may constitute "forward-looking information" within the meaning of Canadian securities law. Other than statements of historical fact, all statements are "Forward- Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise. While historical results mentioned in this press release are not 43-101 compliant and should not be relied upon, they have been filed in government offices with assessment reports.