Mt Isa Metals Limited (ASX:MET) Announces New Copper And Cobalt Assay Results From Leichardt Exploration Project

Brisbane, May 26, 2010 AEST (ABN Newswire) - Mt Isa Metals Limited (ASX:MET) is pleased to announce that assay results have been received for the initial three drill holes of the 2010 Leichardt Project drilling program. The results include significant copper and cobalt intersections recorded in previously untested structures.

The Leichardt Project comprises multiple tenements and tenement applications located approximately midway between Mount Isa and Cloncurry in north-west Queensland. The area is noted for a high concentration of historical copper workings and a number of recent major copper and copper-gold discoveries.

Drilling to date within the Leichardt Project has focussed on resource delineation of the Barbara copper deposit. The current drill program aims to provide a first pass assessment of multiple copper targets defined at other locations within the Barbara (EPM 16112) and Blockade (EPM 16197) tenements. Both tenements are held in joint venture between Mt Isa Metals Limited (49%) and Syndicated Metals Limited (ASX:SMD) (51% and manager).

Green Zone - Copper

The Green Zone target is defined at surface over a 400m strike length via a +200ppm copper in soil geochemical anomaly and coincident elevated surface channel sample results including 10m @ 1.0% Cu and 15m @ 0.63% Cu (approximate true width).

Visible copper oxide (malachite) has also been noted at surface associated with a major northtrending fault zone.

The first two drill holes into Green Zone have now been completed (GZRC001 and GZRC002) and have confirmed the presence of potentially mineable widths and grades of chalcopyrite (copper sulphide) mineralisation at shallow depths.

North Gossan - Cobalt

The North Gossan target is located at the mapped/projected intersection of the Green Zone and Barbara Faults. Significant copper mineralisation has been defined by drilling on both structures.

The initial drill hole completed at North Gossan (NGRC001) intercepted a zone of strong quartz sulphide alteration (mostly pyrite) from 18 metres depth with a six metre thick massive sulphide zone from 40 metres at the base of the intersection grading 0.18% Co at a 0.1% Co lower cut-off grade.

At current metal prices of approximately US$3/lb for copper and US$20/lb for cobalt, a cobalt grade of 0.18% equates to approximately 1.2% Cu equivalent grade2.

Although the copper values in NGRC001 were low (maximum 0.26% Cu) the intersection is considered very encouraging on the basis of comparison with drill holes recorded 900 metres to the south within the Barbara - North Lode deposit. Several drill holes at Barbara North Lode including BARC043 and BARC048 reported similar cobalt-rich (low copper) intersections adjacent to high grade copper mineralisation.

Follow-up drilling is currently underway at Green Zone and North Gossan. The current drilling program will also include:

- first pass drilling of copper targets on the Blockade tenement including the historical Blue Star and Trey Bit mine sites, and

- further down-plunge drill testing of the Barbara copper deposit

MET considers the Leichardt region to be highly prospective for discovery of additional copper deposits and is seeking to extend its tenement position in the area. MET is therefore pleased to advise that it recently lodged an application for the 80km2 Bulonga Permit (EPMA 18671, competitive with 3rd parties) located 40 kilometres to the south-east of the Blockade permit. The Bulonga application is held 100% by MET. Exploration drilling results for all target areas will be provided as they come to hand.

For the complete Mt Isa Metals Limited announcement including figures and tables, please view the following link:

http://www.abnnewswire.net/media/en/docs/62952-ASX-MET-220932.pdf

Contact

Mr Peter Spiers Managing Director Ph: +61-7-3303-0624 Mob: +61-0409-407-265 Mr Duncan Cornish Company Secretary Ph: +61-7-3303-0624 Mob: +61-0407-623-302 Email: info@mtisametals.com.au