Metalicity (ASX: MCT) has reported a ‘significant’ extension at the Leipold lode within its Kookynie Gold Project, with an 8.92m hit 100m down-dip from the previous deepest intercept.
The result comes from the company’s second of two diamond holes, which have been tasked with testing extensions and generating further data leading up to a maiden MRE at the prospect.
The diamond holes, which have been the deepest to date at Leipold, are thought to have extended mineralisation by a ‘considerable distance’ to 370m down dip. The company reports that assay grades from these holes are pending and mineralisation remains open.
“there may now be, subject to assay results, a material change for the pending mineral resource estimate”
Speaking on this latest result, Metalicity CEO Justin Barton said: “Metalicity is getting on with the job at hand, that is systematically exploring and growing the Kookynie Gold Project, with diamond drilling to date starting to show the exciting potential for depth extension that this project may contain. This second core hole confirms that Leipold can extend further, with diamond drilling to date increasing the Leipold Lode by 150m down dip and there may now be, subject to assay results, a material change for the pending mineral resource estimate. We have shown that the down dip extension for Leipold continues for approximately 370 metres down dip from surface. This is an incredible achievement, and we are continuing to work expeditiously, to continue to generate value from the Project.”
The Kookynie Gold Project is situated 180 km north of Kalgoorlie in Western Australia’s Eastern Goldfields, within the Keith-Kilkenny Tectonic Zone. The project hosts a series of historical mining operations including McTavish, Leipold, Champion, Altona, and the ‘prolific’ Diamantina-Cosmopolitan-Cumberland trend.
The Cosmopolitan Gold mine accounted for 360,000 ounces of gold production between 1895 and 1922, and at one stage was considered one of the largest and most profitable gold mines in Western Australia.
Moving forward, Metalicity notes that a further five diamond holes are set to test Leipold, with an additional two within the anticipated mineral resource zone at the McTavish prospect. These holes will aim to provide density and metallurgical data leading up to the planned MRE.
Assay results from accompanying RC drilling are due to be reported before the end of 2021.
Images: Metalicity Limited
