Metalicity begins hunt for zinc at new Napier Range project
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Metalicity has started its quest to uncover high-grade zinc at its newly acquired Napier Range project in the Kimberley region, Western Australia.
Napier Range is a big prize for Metalicity (ASX:MCT). 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. Anything over 10 per cent is considered high-grade.
The outlook for zinc is bullish following the closure of a number of mines in Australia and Ireland and the cutting of production at others.
The metal, which is used to galvanise steel, is also benefiting from increased Chinese demand as the Asian powerhouse continues its crackdown on polluting operations.
Exploration is now underway along a 4km strike of zinc targets.
High priority targets are being refined for a 5000m drilling program due to start in the June quarter. Metalicity is aiming to upgrade the inferred resource to the higher confidence indicated category.
Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured. By moving resources into the indicated category, it means a company has sufficient information on geology and grade continuity to support mine planning.
Metalicity’s shares were up 2.7 per cent at 3.8c just after market open on Tuesday.