Metalicity completes Kookynie gold farm-in three years early
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Metalicity (ASX:MCT) has earned into a majority stake in the Kookynie gold project, just two years into a five-year farm-in agreement.
Under the farm-in agreement signed with Nex Metals (ASX:NME) back in May 2019, the company had committed to spending $5m on exploration over five-years to earn a 51 per cent stake in the Kookynie and Yundamindra gold projects.
Fast forward two years and the string of drilling successes, such as a recent 1m intersection grading 118.4 grams per tonne (g/t) gold, have led Metalicity to accelerate exploration to the point that it has met the earn-in requirement three years ahead of schedule.
“This is an incredible achievement and only possible through the backing of our shareholder base. We had five years to complete this task, but we effectively completed the earn in within two,” managing director Jason Livingstone said.
“We are strong believers that the Kookynie gold project has the best tenure of the region with an emerging and historically prolific goldfield.
“However, the task at hand continues. We have a back log of assays due and peripheral work to continue to highlight the potential of both of the gold projects.”
With the company now holding a 51 per cent stake in the two projects, the farm-in agreement will convert into a joint venture with Nex.
Kookynie includes the Cosmopolitan mine that historically produced 360,000oz of gold between 1895 and 1922 and the Altona gold mining centre that produced 88,700oz between 1900 to 1965.
Other prospects include Leipold, which is currently defined over 800m of strike and McTavish, which is defined over 300m of strike.
Meanwhile, the Yundamindra gold project hosts high-grade historical production of 45,000oz at an average grade of 19.3g/t gold.
Looking ahead, Metalicity expects to receive a backlog of assay results from the Kookynie by late June.
The company has received assays for just 19 of the 89 holes that it has drilled on Kookynie this year.
It will also compile an initial maiden JORC 2012 resource estimate for the Leipold, McTavish and Champion Prospects, along with an updated exploration target to illustrate the pathway forward.
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.