ASX-listed emerging zinc developer Metalicity Limited (ASX:MCT) continues to build on its portfolio of zinc projects after securing the high-grade Napier Range project in the Kimberley Region, Western Australia.
Napier Ranger lies in the world-class Lennard Shelf – a northwest trending belt between the Proterozoic Kimberley Block and the Fitzroy Trough.
According to Metalicity, the project provides the company with a low capital and near term producing zinc opportunity. It is also regarded as having excellent exploration potential with nine significant targets identified for drill testing along a 4km strike.
News of the acquisition has seen Metalicity’s share price gain over 4%, or 0.2c, to 4.7c in late morning trade.
Securing the Napier Range zinc project is a significant step forward for Metalicity’s zinc strategy by providing a potential high grade, low capital, near term zinc development project that complements the pathway for our 100% owned Admiral Bay Zinc Project,” Metalicity managing director Matt Gauci said.
“Metalicity has completed field work, exploration targeting and base case financial modelling and looks forward to commencing an aggressive exploration program to determine the projects capacity to provide a source of cashflow for the Company’s ongoing advancement of the long-life Admiral Bay Zinc project, while also seeking new discoveries at the Emanuel Range Zinc Project.”
Napier Range contains the Wagon Pass deposit which has a JORC 2012 Inferred Mineral Resource Estimate of 750,000 tonnes at 13.6% zinc equivalent and an Exploration Target Range of 100,000-200,000 tonnes at 10%-15% zinc equivalent.
Napier Range also contains an additional exploration target range of 1-4 million tonnes at 10-15% ZnEq across many separate prospects within the mining leases that are priority targets for drilling.
Resource and exploration drilling is planned for the current quarter within Wagon Pass as well as along the 4km strike extent at Napier Range, subject to approvals and once the wet season has ended.
Glencore and Teck will retain an option at Napier Range to earn a 51% participating interest in the Wagon Pass tenements if a new JORC Inferred Resource has been discovered, by either completing and sole funding a Feasibility Study, or spending $20 million on the assessment of the inferred resources.
Napier Range is classed as a Mississippi Valley Type deposit which typically demonstrate simple and conventional process flowsheet design, high metal recovery and excellent clean concentrate quality.
Admiral Bay project remains the company’s main focus where it is working towards financing and near-term development.
Today’s news comes after China Non-Ferrous Metals finished reviewing a pre-feasibility study for Admiral Bay, with its own engineering, procurement and construction costings to be incorporated into the study.