Special Report: Early exploration success has investor favourite Metalicity well on the path to a resource for its high grade Kookynie gold project in WA.

The historic Kookynie project hosts six historical prospects including the Cosmopolitan mine that produced 360,000 ounces of gold at an impressive head grade of 15 grams per tonne (g/t) between 1896 and 1922.

Hits above 5g/t gold are generally considered to be high-grade.

With such a storied background, and drilling success to date, it is not a stretch to believe that Metalicity (ASX:MCT) is well-positioned to uncover WA’s next high-grade success story.

Prior to this year’s more extensive drill campaign, Metalicity had already confirmed that that high-grade gold extended beyond previously developed and drilled areas at Kookynie.

Notable results included numerous shallow intersections such as:

  • 3m at 107.2g/t from 32m (Leipold)
  • 4m at 104.8g/t from 36m (Leipold)
  • 3m at 52.33g/t from 23m (McTavish), and
  • 3m at 44g/t from 18m (Cumberland).

Historical data collated by the company at Cosmopolitan also uncovered potential upside within areas previously thought to be exhausted and ‘mined out’ with samples returning up to 430g/t gold.

 

Extensive, shallow high-grade gold

The company has since completed its 2020 Phase One drilling program, which has proven to be a rousing success with 32 of the 44 drill holes returning significant drill intercepts confirming major gold endowment essentially within 50m from surface.

Notable results from Leipold and McTavish include:

  • 4m @ 16.3g/t Au from 42m (inc. 3m @ 20.7g/t Au from 42m) (Leipold)
  • 9m @ 5.7g/t Au from 35m (inc. 2m @ 17.9g/t Au from 40m) (Leipold)
  • 4m @ 13/g/t Au from 33m (Leipold)
  • 2m at 14.11g/t from 39m (McTavish)

Taken together, the drilling has confirmed that thick, continuous high-grade mineralisation at very shallow depths is present at the Leipold and McTavish prospects.

And there is potential for more to be found as the mineralisation remains ‘open’ in all directions.

Metalicity has noted that it is observing widths and grades that are well above the previous JORC 2004 resource estimate, which bodes well for its future resource inventory conducted to the more definitive JORC 2012 standard.

 

Phase Two drilling is imminent

Metalicity and its joint venture partner are poised to kick off a larger, more aggressive Phase Two drilling program totalling 5,000m next week.

The program will initially look to expand the gold zone around the Leipold prospect to just over 1km of strike.

Drilling at McTavish is aimed at potentially expanding the known mineralised strike from ~200m to between 400m and 500m.

The company also intends to test a further 8km of strike extensions to known mineralisation at Kookynie including extensions to the Cosmopolitan gold mine.

It is awaiting final results from a drone magnetic survey which will refine targets and allow the expansion of the Phase Two drilling program.

 

This story was developed in collaboration with Metalicity, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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