Metalicity’s Altona prospect is a Cosmopolitan lookalike
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Special Report: High grade drill results have indicated that Metalicity’s Altona prospect in WA could be a “sister” of the prolific Cosmopolitan gold mine just 1.5km to the east.
Assays such as 1m at 14.82 grams per tonne (g/t) gold from 57m and 1m at 8.36/t gold from 89m confirm that high grade mineralisation continues along strike and at depth to the historical Altona Mining Centre that produced 88,700oz between 1900 to 1965 at an average head grade of 30g/t gold.
Metalicity (ASX:MCT) added that repeat assays on the top hit returned values of 60.34g/t, 5.56g/t and 3.52g/t gold that points to the nuggety nature of mineralisation at Altona.
Drilling at Leipold to confirm mineralisation and provide sample material for pilot metallurgical test work also intersected gold of up to 1m at 16.86g/t gold from 34m within a broader zone of 13m at 2.77g/t gold from 23m.
“The intercepts returned from Altona are very encouraging. The variability observed in our assays is not uncommon in such high-grade areas given the nuggety gold seen here,” managing director Jason Livingstone said.
“The historical production averaged 30g/t gold over the life of this mine and qualifying this grade in drilling is challenging as can be seen from the duplicate and sample analysis we have performed.
“Nevertheless, the tenure of the grades returned is incredibly encouraging and Altona looks to be a potential sister to the prolific Cosmopolitan Gold Mine some 1.5km west of Altona.”
He added that assays are pending for a further 87 holes drilled at the Orient West East, Leipold North, Altona and McTavish targets.
“As frustrating as it is having such a volume of assays pending, we expect to have this backlog cleared by the time we resume drilling in mid to late January 2021,” Livingston added.
Metalicity noted that the drill results demonstrate that previously identified mineralisation continues at depth and along strike with assays returning significant intersections that continue to validate and confirm the down plunge extensions of previously drilled areas.
It added that the variability of results indicate significant statistical variability within the mineralisation related to a term called the “nugget effect”.
This “nugget effect” is a principle that tries to explain that mineralisation, especially in a gold environment, is not homogeneous.
However, the company noted that given the reported production from Altona historically, the variability in assays is not uncommon and during mineral resource estimations, are dealt with via industry standard geostatistical measures.
Additionally, the initial target area represents a small part of the overall Altona anomaly that represents circa 2km of strike potential north and south of main Altona workings.
Information on hand is being evaluated to ensure that future drilling within this large area of anomalism is systematically tested to illustrate the high-grade tenure of this locality.
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.