Excitement continues to build for Metalicity with its second diamond hole confirming that Leipold mineralisation extends even further down-dip than previously thought.
The hole, which was drilled 100m down-dip of the first diamond hole and is the deepest hole drilled to date at the prospect, intersected 8.92m of Leipold mineralisation from a depth of 270.33m.
Metalicity (ASX:MCT) says its belief that this is an extension of the Leipold Lode was supported by the laminated quartz veining, intense alteration and a wide suite of sulphide mineralogy observed.
Diamond drilling is continuing with a further five holes at Leipold and two holes at the McTavish prospect planned within the anticipated mineral resource zone for density and metallurgical test work.
Managing director Justin Barton said the diamond drilling program is starting to show exciting potential for depth extensions with the second core hole demonstrating that Leipold can extend further, which could result in a material change for its pending resource estimate.
“We have shown that the down dip extension for Leipold continues for approximately 370 metres down dip from surface,” he added.
“This is an incredible achievement, and we are continuing to work expeditiously, to continue to generate value from the project.”
Assays are pending from the two diamond holes drilled to date and from recent reverse circulation drilling.
Nex Metals acquisition bid
Barton also took the opportunity to fire a shot across the bow of Nex Metals Exploration (ASX:NME) saying that the company’s activity highlighted its ability to effectively manage the Kookynie project that is shared by the two companies.
Metalicity had in September made a $12.8m all-share takeover bid for Nex in an attempt to merge ownership of the project under one banner, improving the companies’ access to capital, generating cost savings and enhancing their overall balance sheet position to accelerate their timeline towards developing the future mining operations.
“This is a demonstration of the drive to actually progress and move towards development the Kookynie gold project that Metalicity intends to pursue, in contrast to the path taken by Nex Metals,” he added.
“There are a number of matters before the Takeovers Panel regarding Nex Metals and Metalicity and these matters will be responded to by the company in due course and in the appropriate forum, once the panel has made a ruling, alongside related Supreme Court matters.
“In the meantime, Metalicity will continue to focus on creating value for our shareholders and implore Nex Metals shareholders to seriously consider the offer from Metalicity.”
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.