July 13, 2010
MetalCorp Announces Company Changes and Updates Project Progress
TORONTO, ONTARIO--(Marketwire - July 13, 2010) - MetalCorp Limited (TSX VENTURE:MTC) is pleased to announce a change in the Company's direction, provide an update on progress on our focus properties and announce changes in personnel.
Chris Dougherty, P.Eng., President, and MetalCorp's Board of Directors are pleased to announce a strategic change in focus for the Company going forward, wherein MetalCorp will focus not only on exploration but also on development of mineral properties. To this end, the Company is actively pursuing projects that are at an advanced stage or include past-producing properties with identified resources that are considered to have high potential for development.
"The intention is to bring at least one new project into the Company that will provide MetalCorp with a cornerstone development project, allowing us to bring it to an advanced state, or even production, thereby enhancing our value as a company, and potentially providing us with a revenue stream to establish our financial self-sufficiency.", says Chris Dougherty, President and Director. "This additional facet to MetalCorp's strategic focus is intended to exploit the strengths, background and experience of MetalCorp's management and board of directors." To this end, MetalCorp is reviewing several potential projects that would offer this opportunity.
In addition, the Company is moving forward with a plan to focus on three of its current properties for the 2010/2011 work plan. These include the Pickle Lake property, near Pickle Lake, Ontario, the Black Bear property in Red Lake, Ontario and the North Rock property, near Fort Frances, Ontario. The results of previous exploration on the three properties has been compiled and reviewed under a process established by Charles Greig, P.Geo, V.P. Exploration, and systematic exploration, which includes high-resolution airborne magnetic, geophysical and geochemical surveys. The results of these efforts will be collated to formulate the plan for upcoming drilling campaigns on the properties.
This new approach has been implemented, and the following progress achieved to date:
MetalCorp holds more than 18,000 acres in the Pickle Lake area in a northeast-trending belt adjacent to the northern boundary of PC Gold's Pickle Crow property. The Company recently completed a systematic compilation and analysis of previous work on the property and in the past two weeks it completed a second phase of grid-controlled Induced Polarization (IP) and magnetometer (Mag) surveying on the southernmost part of the property. In addition, initial results of the first round of Mobile Metal Ion (MMI) soil geochemical surveys on the property are being received and will be compiled and interpreted by Dr. Mark Fedikow, Ph.D., a well-known and experienced geochemist who is very familiar with the technique. MetalCorp is confident that the combination of geochemical and geophysical surveys, along with the results of previous work (see News Release dated March 26, 2010), will outline some excellent drill targets along the length of the property, which is, in general, covered by thick overburden.
The Pickle Lake property exhibits good potential for shear zone hosted quartz-carbonate vein gold deposits, and for iron-formation-hosted gold deposits similar to those mined historically at the nearby Pickle-Crow and Central Patricia deposits.
Red Lake/Black Bear
MetalCorp has also begun geophysical (IP and Mag) and geochemical (MMI) surveys on a recently-completed cut grid on its Black Bear gold property, which lies 20 km northeast of Red Lake in northwestern Ontario. The property covers a key part of the northeast extension of the East Bay Deformation Zone in the historic Red Lake gold camp. The East Bay Deformation Zone hosts a number of known gold occurrences including three past producers, of which the Cochenour-Willans mine with 1.24 million ounces of historical gold production is the most significant. The East Bay trend also hosts a number of exciting exploration plays, including the F2 Zone (Phoenix gold project) of Rubicon Minerals Corp., the GAZ Gold zone (East Bay property) of Premier Gold Mines Ltd. and Goldcorp Inc., and the Sidace Lake property of Planet Exploration Inc. and Goldcorp Inc. The grid-controlled ground IP survey will be the first of its kind on the property, which is similar to the Pickle Lake property, in that exposure is very limited.
The North Rock property encompasses nearly 15,000 acres approximately 25km east of Fort Frances in northwestern Ontario. The property is underlain by the 20km long Grassy Portage layered mafic intrusion, which hosts four known zones of magmatic Cu-Ni (±PGM and Au) sulphide mineralization near its base. The most significant zone (the Beaver Pond zone) was discovered by Noranda in the late 1950's, and it hosts a non-compliant Cu resource (i.e., a historical estimate not prepared in compliance with National Instrument 43-101) which appears to be open below the 90 meter depth of the base of the resource block. Beneath the resource, at a vertical depth of 175 meters, a drillhole intersected 2.21% Cu over more than ten meters in core length.
Further potential at North Rock lies in the exploration for nickel, cobalt, platinum group metals (PGM) and gold in the Cu-bearing magmatic sulphides. Recent sampling by MetalCorp has shown that mineralization from Noranda's underground development work may yield significant assays for these elements.
Between 2005 and 2007, MetalCorp undertook surface exploration, an airborne MAG/EM survey and drilled 56 drillholes for a total of over 15,000 meters of drilling in three drill campaigns on the property. The first drill campaign was designed to test the depth extension of the known copper mineralization at the Beaver Pond Zone. All drillholes intersected widespread net textured copper--nickel sulphide mineralization similar to that reported in previous drillholes by Noranda, and a number of significant PGM values were intersected. In subsequent campaigns, the drilling targeted other parts of the property, where several other holes also intersected PGM-bearing Cu-Ni mineralization.
Work initiated by MetalCorp in the late Spring of 2010 was aimed at reevaluating the results of previous exploration on the property. In the forefront of this work is a digital compilation of all the available geochemical, geophysical, and geological data for the property, including both underground and drill data. The ultimate aim of the work will be to target the areas of greatest potential for Cu-Ni-PGM (Au) mineralization, and to understand the geological controls for it. Once that work is complete, the company looks forward to prioritizing targets for a late-fall or winter drill campaign.
"Progress to date with the new exploration plan has been excellent, and we are very pleased with the initial results; we look forward to releasing results from the combined surveys in the near future", Chris Dougherty said in this regard.
Along with these operational changes, the Company is very pleased to announce that Mr. Sam Garofalo, H.B. Comm., CA, CMA, will be joining MetalCorp as the Chief Financial Officer, to replace Michael Thompson who has tendered his resignation from the Company to take effect after a reasonable transition period.
Mr. Garofalo has over 25 years of accounting experience as a professional accountant, having obtained both the CA (Chartered Accountant) and CMA (Certified Management Accountant) designations. Mr. Garofalo is also currently the CFO for Rockex Limited, a privately-owned developing mining company, and is a Professor of Accounting at Confederation College in Thunder Bay. He has worked as an auditor with Ernst & Young, Chartered Accountants, and served as CFO for several private companies.
Chris Dougherty summarized, "I firmly believe that the changes we have made to our strategic vision, refocusing our efforts on these three properties, and the addition of Sam to our management team collectively give MetalCorp a strong foundation moving forward."
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.
MetalCorp has 62,699,471 common shares outstanding and approximately $1,500,000 in cash and no long-term debt. To find out more about MetalCorp visit its website at www.metalcorp.ca.
For further information, please contact:
Donald A. Sheldon, Chief Executive Officer
© 2015 MetalCorp Inc.