Special Report: Metalicity’s (ASX:MCT) phase-two drilling program continues to unearth outstanding near-surface, high-grade gold at the rapidly growing Kookynie project in WA.

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

But Metalicity knew that high-grade gold extended beyond these previously developed and drilled areas.

Phase-two drilling, currently underway, is designed to significantly ‘step out’ (extend) and confirm the gold hits from previous drilling programs.

This will be used to develop JORC 2012 resources in the future.

Assays for the first 16 holes received so far have confirmed significant and extensive high-grade, near-surface gold mineralisation at the Leipold prospect.

This gold not only continues to the southern strike extents, but down dip as well:

The Leipold prospect showing recent drilling.

Notably, drill holes LPRC0064 (6m at 4.54g/t gold from 24m) and LPRC0065 (7m at 3.31g/t gold from 27m, including 2m at 7.01 g/t gold from 32m) extended the mineralisation footprint ~250m to 700m long and counting.

The deepest hole so far – LPRC0049 – returned a spectacular 2m at 35.23g/t gold from 124m, confirming the mineralisation continues ‘down dip’.

“It is incredibly pleasing to have extended the mineralisation at Leipold along strike and down dip with the return of the initial holes,” Metalicity managing director Jason Livingstone says.

“It is apparent that the Leipold mineralisation extends a considerable distance, some 250m south, past our previous drilling, and I look forward to receiving the balance of the assays and the results from our current drilling which is underway.”

The next batch of assay results are due in late August, the company says.


The gold-rich Kookynie project

Kookynie, about 50km south of Leonora, is host to six historical mines: Champion, McTavish, Leipold, Diamantina, Cosmopolitan and Cumberland.

Metalicity’s initial focus has been the prolific Leipold-McTavish trend, about 3km west of Cosmopolitan.

The company already has a good initial feel for the amount of gold at Kookynie, recently releasing a JORC exploration target of between 294,000oz and 967,000oz.

To put that in perspective, Spectrum Metals had a resource of 355,000oz when it was taken over by miner Ramelius for $208m earlier this year.


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.