Metalicity Limited (ASX: MCT) has announced an encouraging update on its Kookynie Gold Project in Western Australia, circa 60 kms south of Leonora.
The company reported that drilling has commenced at the high-grade Kookynie Gold Project in WA.
MCT said that within the Kookynie project, limited work was conducted in and around the Cosmopolitan Gold Mine and other prospects like Champion, McTavish, and Leipold.
Historical drilling had returned near surface intersections such as 3m @ 107.2 g/t Au from 32 metres, and 4m @ 104.8 g/t Au from 36 metres (Leipold); 3m @ 52.33 g/t Au from 23m (McTavish); and 3m @ 44.0 g/t Au from 18 metres (Cumberland).
Recent holes had also returned near surface intersections such as 5 metres @ 17.9 g/t Au from 48 metres inc. 1 metre @ 80.17 g/t Au from 51 metres (McTavish); and 6 metres @ 9.4 g/t Au from 26metres inc. 2metres @ 19g/t Au from 26metres (Leipold).
Metalicity reported that it has estimated a significant Exploration Target of between 294,000 ounces and 967,000 ounces based on the available data.
The company said that an initial drilling program up to 40 drill holes will be completed over the coming weeks at Leipold and McTavish which can be extended depending on results.
Kookynie project
The Kookynie gold project is located 60 kilometres south south-east from Leonora, Western Australia.
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 historic Cosmopolitan mine had produced 360,000oz at a very high average head grade of 15 grams per tonne (g/t).
High-grade intercepts
The Kookynie Gold Project is underexplored, but contains some high-grade intersections including Leipold – 3m @ 107.2 g/t Au from 32 metres in LQRC0026; Leipold – 4m @ 104.8 g/t Au from 36 metres in BLQ012; McTavish – 3m @ 52.33 g/t Au from 23m in hole CRC136; and Cumberland – 3m @ 44.0 g/t Au from 18 metres in KOYC106.
Exploration target
Metalicity had defined a significant “Exploration Target” of between 294,000 ounces and 967,000 ounces in March 2020. This is inclusive of historically stated mineral resource estimates and previously excluded areas of underground development.
Three drill programs completed
Metalicity reported that it had completed three drilling programmes to date. The company’s December 2019 drilling programme had returned significant intercepts. This had confirmed mineralisation extends past previously developed and drilled areas for the Kookynie Gold Project. MCT reported that a staged programme has begun to follow up on these results whose objective is to efficiently explore the large high grade mineralised systems that the Company’s initial work identified.
The first stage of this expanded exploration programme will be concentrated on the Leipold and McTavish Prospects.
New drill programmes at Kookynie
The company announced that the new drill programme at the Kookynie Gold Project has been designed to follow up on the drill hole results to date through step out and infill drilling. The company said that this new 40-hole drilling program would focus on the Leipold and McTavish prospects.
Leipold prospect
The Company reported that this initial programme of up to 30 drill holes will go into Leipold to infill the area shaded red.
The company said that this southern extent, up and down dip, and along strike area where previous drilling represents an incredible opportunity to not only confirm aspect of the JORC 2004 Mineral Resource Estimate of 555kt @ 1.9 g/t for 33koz, but also to expand and allow Metalicity to potentially re-estimate and significantly refine the mineralisation model to JORC 2012 guidelines.
Metalicity said that the shaded area in blue presents an opportunity to further expand the mineralisation at the Leipold Prospect in the months to come, while the green shaded area represents an opportunity to develop similar high-grade shoots that have already been identified in shallow, but less intensive, historical drilling.
McTavish prospect
Metalicity announced that the initial programme of up to 10 drill holes at McTavish is designed to infill the area shaded blue. MCT said that this zone between two historically worked areas at McTavish where previous drilling represents an incredible opportunity to not only confirm aspect of the JORC 2004 Mineral Resource Estimate of 79kt @ 2.2 g/t Au for 6koz but also to expand and allow Metalicity to potentially re-estimate and significantly refine the mineralisation model to JORC 2012 guidelines.
The company said that the green shaded area presents an opportunity to further expand the mineralisation at the McTavish Prospect in the months to come.
Champion Prospect and DCC Trend
The Company reported that it has completed two Reverse Circulation (RC) and two diamond core drill holes to date at the DCC Trend, and six Reverse Circulation (RC) drill holes to date at the Champion Prospect.
Drone magnetic survey
The company announced that concurrent to this drilling, a drone magnetic survey will be undertaken to assist in geological interpretations of the strike extents of the known mineralised areas of Leipold, McTavish, Champion, and the DCC Trend.
Next steps
MCT said that as results are received, and geological interpretations confirmed, the exploration programme will be further extended. The company said that this proposed staged approach will allow for results to be interpreted and incorporated into future plans, ensuring that all the follow-up exploratory stages will be carried out as efficiently and cost effective as possible.
Management comments
Metalicity Managing Director, Jason Livingstone said: “With the Company now funded post our recent capital raising, we now turn to continuing to develop the Kookynie Gold Project.
An initial 40-hole RC programme is designed and is currently being executed to follow up the phenomenal drill hole results we published at Leipold and McTavish.
This is part of a larger, staged programme to really start showing how big these Prospects are. I have every confidence that our success will be repeated, and I look forward to keeping our shareholders and the market in general, abreast as developments arise.”