Metalicity Limited (ASX: MCT) has announced the return of significant intercepts from the September drilling programme at the Kookynie Project in the Eastern Goldfields, Western Australia.
The company reported that the three-hole follow-up drilling programme confirms that mineralisation extensions past previously developed and drilled areas at the Kookynie Project, as well as reaffirms the excellent exploration potential of the project.
MCT announced that drilling confirms significant mineralisation at Leipold, with intercepts of 9 metres @ 7.31 g/t Au from 34 metres including 3m @ 7.91 g/t Au from 34 metres and 4m @ 10.4 g/t Au from 39 metres including 1 metre returning 31.2 g/t Au from 40 metres.
Significant results from McTavish includes 3 metres @ 1.41 g/t Au from 73 metres, while important intercepts from Champion includes 1 metre @ 1.35 g/t Au from 127 metres.
The company reported that all holes returned structural continuation of mineralisation and significant intersections.
Kookynie Gold Project
The Kookynie Gold Project is located near Leonora in Western Australia. The project is host to six, significant prospects: Champion, McTavish, Leipold, Diamantina, Cosmopolitan, and Cumberland.
Drilling at Kookynie
The company had recently commenced a drilling programme at the historic mine sites of Leipold, McTavish, and Champion. This programme tested the prospects with a single hole each.
The company said that the drilling was designed to also test mineralised cross cutting (east-west) structures that control the main north-south mineralised trends that host the historical workings and historical drill hole intercepts.
The Reverse Circulation (RC) hole LPRC0001 was drilled at Leipold prospect, RC hole McTRC0002 was drilled at McTavish prospect, and the RC hole CPRC0002 was drilled at Champion prospect.
MCT said that every hole to date has intersected the mineralised structure.
Hole LPRC0001 at Leipold
The company reported that the RC hole LPRC0001 was designed to test the up dip extensions of the mineralised plunges of the Leipold Mineralisation to date and was completed at a depth of 48 metres.
MCT said that LPRC0001 was successful in not only intersecting the structure but confirmed the historical high-grade nature of the prospect with a broad intercept of 9 metres @ 7.31 g/t Au from 34 metres, including a very high-grade metre at 31.2 g/t Au from 40 metres down hole.
The company said that the very shallow nature of these results also highlights the possibility of open pit mining options.
Hole McTRC0002 at McTavish
The Company announced that it has completed a single RC drill hole McTRC0002 at the McTavish Prospect to a depth of 84 metres in an area that is below the known historical workings.
The hole is significantly down dip from historical drilling and along strike from the company’s recent drill hole intercept of 4 metres @ 6.4 g/t Au from 67 metres.
The company reported that the drill hole intersected the structure, demonstrating the down dip continuance of mineralisation beyond the previously defined limits of drilling.
MCT reported that hole McTRC0002 returned an intercept of 3 metres @ 1.41 g/t Au from 73 metres, demonstrating the potential for grade to continue.
Hole CPRC0002 at Champion
The Company announced that it has completed a single 138-metre-deep RC hole CPRC0002 and endeavoured to intersect the down plunge mineralisation that is observed at the Champion Prospect.
MCT reported that hole CPRC0002 returned an intercept of 1 metres @ 1.35 g/t Au from 127m.
The company said that the structure was intersected with quartz veining with significant pyrite, chalcopyrite and pyrrhotite sulphide mineralogy observed. However, the tenure of grade reflects the poddy nature typically observed in Eastern Goldfields lode gold deposits.
Next steps
Metalicity announced that based on the results to date with nine drill holes completed, gold mineralisation exists beyond what the historical data had illustrated.
The company 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 has 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 statements
Metalicity Managing Director, Jason Livingstone said: “While the short programme encompassed three drill holes, each was successful in again extending the known mineralisation. The intercept at Leipold illustrates the high-grade nature that is possible within these structures.
I am very excited to see the completion of the current rights issue on offer and continue to develop the Kookynie Gold Project, which represents a significant opportunity for Metalicity.”
