Metalicity is cashed up to fast-track Kookynie gold drilling

Special Report: Metalicity has raised $5m through a strongly supported placement to accelerate exploration at its high-grade Kookynie gold project in Western Australia.

And it is not hard to see why it is keen to do so given recent drilling successes that include multiple near-surface, high-grade intersections at the Leipold area with top hits such as 10m at 7.44 grams per tonne (g/t) gold from 108m and 2m at 35.23g/t gold from 124m.

Metalicity (ASX:MCT) says the placement of 208.3 million shares priced at 2.4c each, or a 15 per cent discount to the 15-day volume weighted average price, was underpinned by existing and new professional and sophisticated investors.

Managing director Jason Livingstone said the strong support for the placement allowed the company to continue developing and exploring the Kookynie gold project at an accelerated rate.

“We are continuing field work with a very strong balance sheet, and I look forward to following up on the fantastic, high-grade drill hole hits we have achieved so far this year,” he said.

Accelerating gold exploration

The additional funds will allow Metalicity to add a second drill rig to accelerate drilling and expand the existing program to include the 21 recently identified high priority targets located outside the known mineralised areas of the Leipold, McTavish, Champion, The DCC and Altona Trends.

A key focus will be the compelling 1.3km anomaly identified along strike and 2.5km to the north of the high-grade Cosmopolitan mine that produced 360,000oz of gold at an average grade of 15g/t.

This anomaly appears to be an exact geophysical replica of the Cosmopolitan gold mine.

Metalicity has drilled about 78 holes to date at Kookynie, with results from 24 holes expected to be received and released shortly.

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.