Metalicity Limited (ASX: MCT) announced that a compelling 1.3 kilometre anomaly has been revealed from the drone magnetic geophysical interpretation for the DCC and Altona Trends from the Kookynie Gold Project in the Eastern Goldfields, Western Australia.
The company reported that the compelling 1.3-kilometre-long geophysical anomaly is along strike and 2.5 kilometres to the north of the very high-grade Cosmopolitan Gold Mine.
MCT reported that the 1.3-kilometre anomaly is very similar with regards to geophysical signatures and structural settings to the DCC Trend which hosts the Cosmopolitan mine, and to the known mineralised areas like Leipold, McTavish, Champion, and Altona Trends.
The company said that the Altona Trend appears to be a “mirror image” of the DCC Trend displaying the same geophysical anomalism and structural disruption.
Metalicity said that the balance of the drone survey results of remaining Leipold-McTavish, Champion, and E40/289 are pending and are expected to be announced shortly.
The company reported that the drilling at Kookynie Gold Project continues with a further 24 holes in the laboratory pending assay results from the current drilling activities due imminently.
Kookynie project
The Kookynie gold project is located in the Eastern Goldfields, Western Australia, approximately 60 kilometres south southwest of Leonora.
The project is host to six significant prospects; Champion, McTavish, Leipold, Diamantina, Cosmopolitan, and Cumberland. Diamantina, Cosmopolitan, and Cumberland are known collectively as the DCC Trend.
The Altona area is 1.5 kilometres east of the DCC Trend and between 1900 and 1965, had produced some 88.7koz from approximately 90,000 tonnes at an average grade of approximately 30 g/t Au.
The historic Cosmopolitan mine had produced 360,000 ounces at 15 g/t Au from surface to a depth of 320 metres.
Drone magnetic survey
In June and July 2020, the Company flew a drone magnetic survey over all major trends within live tenure subject to the farm-in agreement.
The ultra-high-resolution geophysical survey was designed to map out lithological and structural complexities of the Kookynie Gold Project with the aim of developing targets along the untested 8 kilometres of strike potential and to gain a better understanding of the influencing structures that control mineralisation at the known prospects of Leipold, McTavish, Champion, the DCC and Altona trends.
East west orientation
The company said that the orientation of the drone survey flight lines was east west to ensure coverage of what we interpreted to be the main generally north south-south trending structures that host known mineralisation, with what appears to be influencing north east-south west trending structures that influence high grade pods as observed at the Cosmopolitan Gold Mine and Leipold for example.
The company said that the drone survey was localised over trends identified when the Company acquired and re-processed all publicly available geophysical data from the DMIRS website – GeoView.
21 high-priority targets
The company announced that from the re-processed geophysical data, 8 kilometres of strike potential was delineated outside of the known areas of mineralisation.
Metalicity said that it is now armed with ultra-high-resolution magnetic data that further refines the regional data and has produced 21 high priority targets that are of a similar signature to the known prospects with “known” mineralisation.
MCT noted that the DCC and Altona Trends have very prominent geophysical signatures with clear contrast between magnetic intensities and structural disruption that indicates the controlling structures to mineralisation observed.
Encouraging initial results from Drone Magnetic Survey
Metalicty reported that the initial results from the Drone Magnetic Survey of the DCC and Altona Trends areas revealed that the northern extents of the Cosmopolitan Gold Mine presents an incredible opportunity where two distinct zones have been identified.
Five targets identified
MCT said that the initial results have identified 5 targets that have similar geophysical and structural settings to known mineralised areas within the Cosmopolitan Gold Mine area. Metalicity said that it plans to secure a second rig to test these high priority targets shortly.
Collectively, these two mining centres (The DCC & Altona Trend) within 1.5 kilometres of each other have produced nearly 450,000 ounces.
The company said that the targets represent an incredible opportunity for exploration success in potentially defining repeats of the prolific and high-grade Cosmopolitan Gold Mine, let alone potentially defining remnant mineralisation with previously developed areas.
The drill target summary is as shown below.
1.3-kilometre anomaly
The company reported that the Drone Magnetic Survey of the DCC and Altona Trend areas have revealed a prominent 1.3-kilometre anomaly approximately 2.5 kilometres north of the historically prolific Cosmopolitan Gold Mine wholly within Mining License 40/61.
MCT said that this anomaly has a very similar geophysical signature that also has cross cutting, influencing structures present that are also observed at the Cosmopolitan Gold Mine, indicating that the chance of exploration success is high.
800 metre anomaly
The company said that there is also an 800-metre anomaly that remains relatively untested immediately north of the historical Cumberland Pit, on the northern extremity of the historical Cosmopolitan Mine.
Pending survey results
The company reported that the Leipold-McTavish, Champion, and Fortuna-Orient Well East (E40/289) surveys are still undergoing final interpretation and checks and results are expected in the near future.
Drilling update
The company reported that the drilling underway at Kookynie continues to advance well with 68 holes drilled to date. The company said that there are also samples from 24 drill holes at the laboratory pending analysis, the results of which are expected in the very near future.
Next steps
Metalicity said that it intends to drill the known and extend the mineralised occurrences within the Kookynie and Yundramindra Projects.
The Yundramindra Project is currently under the plaint process, however Metalicity believes that Nex Metals is well advanced in defending those claims. The company said that the drilling will be designed to validate historical drilling with a view to making maiden JORC 2012 Mineral Resource Estimate statements.
Metalicity had made the aspirational statement of developing “significant resource and reserve base on which to commence a sustainable mining operation focusing on grade and margin.
Management comments
Metalicity Managing Director, Jason Livingstone said: “This is an incredibly exciting time for the Kookynie Gold project with such high tenure targets near the prolific Cosmopolitan Gold Mine wholly within granted tenure being generated from this exercise.
The very similar settings of these targets bode very well for the prospectivity of the identified targets, especially uncovering a 1.3 kilometre anomaly some 2.5 kilometres north of the Cosmopolitan Gold Mine that has an incredibly similar signature with not a single drill hole into it. This is a fantastic result and confirms our interpretation of the area, let alone the incredible prospectivity.”