Metalicity Limited (ASX: MCT) has celebrated a strong start to 2020 with the receipt of promising drill results and the acquisition of a large land parcel near its Kookynie Gold Project in the Eastern Goldfields of Western Australia.
Managing Director, Jason Livingstone said the results from the company’s December 2019 drilling programme have confirmed that mineralisation extends past previously developed and drilled areas at the Kookynie Gold Project.
At the same time the company has moved quickly to acquire the significant land parcel through pegging approximately 3,300 hectares of available ground within the prolific Kookynie-Niagara Trend.
“I am extremely pleased to start 2020 with such spectacular drill hole results, especially receiving assays up to 80 g/t gold,” Mr Livingstone said.
“With our three drilling programmes to date, we have managed to intersect the mineralised structure at all prospects, with every drill hole and continue to illustrate that the Kookynie Gold Project has the potential to be a prolific gold Project. These results are also very shallow, which if converted to resources and reserves, could be potentially open pittable.
“Furthermore, we are very active on the consolidation front at the Kookynie Gold Project. Since entering into the farm-in agreement with our partners, Nex Metals Exploration Ltd, we have increased our land holding through further strategic farm in agreements and tenement pegging exercises.
“Originally, the deal with Nex encompassed just over 2,400 hectares. We acknowledged that one aspect of the Kookynie area that has hampered historical exploration is the fractured ownership of tenure in the region. Since then, we have tripled our land holding with our recent tenement acquisition through tenement pegging to just over 7,000 hectares of exceptionally prospective ground.”
We, Metalicity and Nex Metals, are making great headway in our land consolidation efforts and coupled with our exploration and development programmes which are well poised to deliver value for our shareholders.
“We are clearly demonstrating that the Kookynie Gold Project could well be considered a gold province within the Eastern Goldfields of Western Australia,” he said.
Mr Livingstone said that through monitoring of competitor activity within the Kookynie area, it was identified that this area was due for renewal.
“This ground was not renewed and therefore we subsequently used the Department of Mines, Industry Regulation and Safety tenement application process to acquire this ground. “
The exploration license is host to a historical production site named “Wandin”, that during 1903, produced 40 tonnes at an average head grade of 12 g/t Au.
The setting of this tenement application highlights that it hosts the strike extents of Ardea Resources Mulga Plum Prospect coupled with the structural complexity illustrated by the regional geophysics in the area.
“With the acquisition of this strategic and highly prospective tenure, the company has significantly increased its presence within the region and now commands a prominent land holding.”
Mr Livingstone said the regional geophysics illustrate similar signatures to the prolific and well-endowed Niagara Trend which is host to significant gold mineralisation.
To date, all of Metalicity’s acquisitions and tenement pegging activities contribute towards the $5 million required to earn 51% of a May 2019 farm-in agreement with Nex Metals.