Hidden Treasure: Metalicity is about to uncover the secrets of a historical, high-grade gold camp
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Metalicity will ramp up exploration at its Kookynie JV near Leonora, WA in the hunt for high grade gold deposits.
The company had flagged that it will step up the pace of development of the project earlier this month after executing a terms sheet with Nex Metals (ASX:NME) to increase its stake in Kookynie from 65.6% to 80% and settle their disputes.
Kookynie, about 180km north of Kalgoorlie, is a historical high grade gold mining camp with the Cosmopolitan mine producing 360,000oz at an ore grade of 15g/t between 1895 and 1922.
Other deposits such as McTavish, Leipold, Champion and Altona were also highly lucrative back in the day.
Kookynie represents a real opportunity for Metalicity (ASX:MCT) to replicate the success of Spectrum Metals and Bellevue Gold (ASX:BGL), which have made new, exciting discoveries near historical mines.
Exploration carried out by the Metalicity-led JV over the past four years have enhanced the prospectivity of the Kookynie project with drilling confirming that the McTavish and Leipold deposits remain open in one or more directions.
Drilling returned top assays such as 5m grading 25.9 grams per tonne (g/t) gold from a down-hole depth of 28m at McTavish and 2m at 4.7g/t gold from 65m at Leipold.
Metalicity is now looking to recommence more expansive exploration activities at several highly prospective greenfields and brownfields targets, with an initial focus on the underexplored, but highly prospective Mulga Plum and Wandin tenements.
Targets within these two prospects never been drilled by the JV, which is hoping to discover a new mineralised gold complex similar to the historical Niagara mining centre to the south.
Many gold deposits within the Niagara mining centre, as well as the greater Kookynie project area, are strongly associated with brittle structures such as faults or shears, whose orientation varies across the district.
This is particularly relevant for Metalicity as many of the structures are visible in the magnetic data undertaken by the JV and appear in known mineralised areas such as Niagara and the Leipold and McTavish deposits.
Exploration activities will include a combination of ultrafine low detection soil sampling, possible auger drilling and aircore or RC drilling where applicable.
Programme of Work applications have been developed and are to be submitted to DMIRS in the near future.
The company also aims to expand upon extents of recorded mineralisation from field mapping rock chip results and drilling – including 2m at 8.84gt gold from 14m – at Mulga Plum and nearby targets.
Metalicity’s planned expanded drill program will test for structurally controlled, near surface mineralisation anomalies and potential unexposed extensions where the orientation of host structures and areas of associated mineralisation can be confidently extrapolated under alluvial cover.
Planning will also start on follow-up exploration activities for Leipold, McTavish and Champion.
Additionally, preliminary work will also commence on proposed exploration activities for the historical mining centres of Diamantina-Cosmopolitan-Cumberland, known as the DCC trend, and the Cosmopolitan gold mine.
“We are excited to be recommencing more expansive JV activities at our highly prospective Kookynie project, whilst we continue to await the Wardens court ruling on our Yundamindra tenure,” managing director Justin Barton said.
“The Kookynie project has delivered some great exploration results over the last 4 years and we are excited to begin following up these targets and exploring new prospects at Mulga Plum and Wandin.
“We look forward to working with our JV partner to accelerate the development of this project.”
This article was developed in collaboration with Metalicity, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.