Metalicity Limited (ASX: MCT) has announced high-grade first assays from the drilling programme at its Kookynie Gold Project in the Eastern Goldfields, Western Australia.
The company reported that the first assays delivered spectacular, near surface, high grade drilling results at the Kookynie project.
Highlights include 4m @ 16.3g/t Au from 42 metres, inc. 3m @ 20.7g/t Au from 42 metres; 9m @ 5.7g/t Au from 35 metres, inc. 2m @ 17.9g/t Au from 40 metres; 4m @ 13/g/t Au from 33 metres; 3m @ 9.92g/t Au from 18 metres; 4m @ 7.08g/t Au from 18 metres; 3m @ 6.81g/t Au from 9 metres; and 12m @ 2.34g/t Au from 52 metres.
MCT said that all but one drill hole of the 11 received to date has returned a significant intercept. The company said that assays are pending for the remaining 33 drill holes which are due in the coming weeks.
Metalicity noted that the drilling continues to highlight the high-grade and shallow nature of mineralisation at the Kookynie Gold Project.
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).
Drilling at Kookynie
The company had commenced a 44-hole, 2,255 metres initial program at Kookynie.
The June 2020 Phase One drilling programme was designed to step out and continue to confirm the mineralisation observed in the company’s previous drilling programmes, and also to confirm and continue the step out from historical drilling at both the Leipold and McTavish Prospects.
The Company completed 34 Reverse Circulation (RC) drill holes at the Leipold Prospect for a total of 1,721 metres in an area that is below the known historical workings and significantly up and down dip and along strike from historical drilling; while a further 10 holes were drilled at McTavish for 534 metres.
Metalicity said that each of the drill holes intersected the structure, although 10 of the 11 available drill hole results returned significant and extensive high-grade, near surface intercepts, demonstrating the up dip and strike continuance of mineralisation beyond the previously defined limits.
The company said that 33 drill holes are pending results which are due for release in the coming weeks.
Significant intercepts
Metalicity announced that the first assays delivered spectacular, near surface, high grade drilling results at the Kookynie Gold project.
Highlights include LPRC0012 – 4m @ 16.3g/t Au from 42 metres, inc. 3m @ 20.7g/t Au from 42 metres; LPRC0015 – 9m @ 5.7g/t Au from 35 metres inc. 2m @ 17.9g/t Au from 40 metres; LPRC0013 – 4m @ 13/g/t Au from 33 metres; LPRC0006 – 3m @ 9.92g/t Au from 18 metres; LPRC0010 – 4m @ 7.08g/t Au from 18 metres; LPRC0005 – 3m @ 6.81g/t Au from 9 metres; and LPRC0016 – 12m @ 2.34g/t Au from 52 metres.
Metalicity said that the results continue to demonstrate that very shallow mineralisation exists at the Leipold Prospect.
Next steps
Metalicity said that as the drill hole assay results become available, the Company will fold those results into its interpretations and refine further work plans. This methodical approach is expected ensure that future work is efficient and as effective as possible.
The company said that a drone magnetic survey will soon to be finalized. MCT said that the continued evaluation of the known Prospects will continue, but target generation exercises on the 8 kilometres of untested strike potential (from the known Prospects) will be evaluated with drill targets defined. The company said that applying this learning to other targets within the Project will ensure that targets are evaluated efficiently, and work performed will be as effective as possible.
Metalicity said that the results from the drone magnetics survey and the pending assays would be used to finalise the next stage. The company said that it intends to expand the next programme of work to continue to evaluate Champion, Altona and to return to the Cosmopolitan Gold Mine area where 360,000 ounces was produced historically at a head grade of 15 g/t over the life of that mine between 1896 to 1922
MCT reported that it plans to drill the known and extend the mineralised occurrences within the Kookynie and Yundramindra Projects. The Yundramindra Project is currently under the plaint process. Metalicity said that it 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 comments
Metalicity Managing Director, Jason Livingstone said: “We started 2020 with some great intersections and the spectacular results are continuing. With all our drilling programmes to date, we have managed to intersect the mineralised structure at all prospects especially at the Leipold Prospect.
With every drill hole completed we continue to illustrate that the Kookynie Gold Project has the potential to be a prolific gold area. Again, these results are very shallow, which if converted to resources and reserves, could be potentially open pittable.
Of the 11 drill holes that we have received our assays results for, 10 out of 11 returned a significant intercept. We still have 33 holes remaining where we have not received the assays for yet.
This is the remaining Leipold and all the McTavish drilling completed in June 2020. Given the tenure of the intercepts returned so far, I eagerly await the balance of the results and duly look forward to presenting those to our shareholders and the market in general.”