MetalCORP hits high-grade intersect but stocks fall

For the second time in less than a month MetalCORP (MTC-V) has released what it thought was positive, stock driving assays from its Big Lake project, only to watch its shares take a serious chop.

After announcing a highlight intersect of 5.1 metres assaying 4.2% copper, 1.2% zinc, 67.1 grams per tonne of silver and 2.1 grams per tonne of gold, MetalCORP shares fell over 11%.

In Toronto on Aug. 14 the company’s shares were off 18 to $1.41 on roughly 87,000 shares traded.

On July 27 the company announced intersections highlighted by 4.4 metres assaying 8.2% copper, 2.7% zinc, 140 grams per tonne of silver and 1 gram per tonne of gold news that sent shares down nearly 13%.

MetalCORP shares continued to slide after the late July news, and had just begun to resurface before the Aug. 14 news sent them back down.

The reason for the slide is a mystery both to investors posting on online discussion boards and to MetalCORP’s V.P. of exploration Aubrey Eveleigh.

“There’s people who’ve been in the industry for 30 to 40 years who can’t believe it,” Eveleigh says. “The stock is just sitting there. We thought it be over $3 by now.”

The latest reported highlight intersect was from one of three reported on holes in the Aug. 14 press release. It occurred from 91.3 to 96.4 metres in hole No. 34 from the BL14 zone and included a higher grade zone of 7.7% copper, 2.2% zinc, 123.8 grams silver and 3.9 grams gold over 2.6 metres.

The Big Lake project is wholly owned by MetalCORP and is situated 10km southeast of Marathon or 10km southwest of the Hemlo gold mines in northwestern Ontario.

So far MetalCORP has drilled 12 holes and all intersected the BL14 zone over a 250 metre strike length. The company says the mineralized zone has been intersected up to 100 metres, ranging in width from 1 to 7 metres, and is open in all directions.

And while the BL14 zone contains very high grade values, MetalCORP says it is still considered to be a stringer zone to a potential massive sulphide body. The company is planning further drilling delineate such massive sulphides.

Thunder Bay-based MetalCORP is also busy at its recently discovered platinum and copper project at North Rock.