Metalicity beefs up zinc project portfolio with WA acquisitions
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Metalicity is taking advantage of a sky-high zinc price, acquiring the high-grade Napier Range and Emanual Range zinc projects in the Kimberley region, Western Australia.
Zinc has had a stellar run recently, up 32 per cent since the start of January to last week’s high of $US3369.50 per tonne on strong global demand and tight supplies.
The metal is used to galvanise steel and is benefiting from Chinese infrastructure development and higher steel prices.
However investors didn’t show much love for Metalicity (ASX:MCT) in Thursday trade with the stock trading down 4 per cent to 4.7c, valuing the company at $24 million.
Metalicity shares have traded between 3c and 9c in the past year.
Napier Range is a big prize for Metalicity. It’s a low capital and near-term zinc production opportunity that will potentially add much-needed cashflow to the company.
The project includes the Wagon Pass deposit which has a resource of 750,000 tonnes at 13.6 per cent zinc equivalent and adjoining exploration target range of 100,000 to 200,000 tonnes at 10 to 15 per cent zinc equivalent.
Emmanuel Range is an early-stage but highly prospective zinc exploration project with a 30km strike of largely untested targets.
Metalicity has completed due diligence on the projects including fieldwork, rock chip sampling, exploration targeting and base case financial modelling to understand the potential economics.
The company is already developing the large-scale long-life Admiral Bay zinc project which lies in the Canning Basin, Kimberley region.
Metalicity managing director Matt Gauci said it would now begin an aggressive exploration program to determine the projects capacity to provide cashflow for its ongoing advancement of Admiral Bay.