Metalicity (ASX: MCT) has begun an “aggressive” drilling campaign at its recently acquired Napier Range zinc project in Western Australia.
The campaign is focussing on 4km strike, with targets identified from early field mapping, data reviews and rock chip sampling.
About 5,000m of diamond core and reverse circulation drilling will be carried out to upgrade the current inferred resource estimate for the Wagon Pass deposit of 750,000 tonnes grading 13.6% zinc equivalent, comprising 5.8% zinc, 7.2% lead and 54 grams per tonne silver.
“We are very excited to commence exploration including an aggressive drill program at the Napier Range zinc project, which already contains a high-grade, near-surface resource as well as three of nine excellent high-grade exploration targets identified to be drill tested along a 4km strike,” Metalicity managing director Matthew Gauci said.
He added the WA Department of Mines had approved a program of works which is scheduled for the June quarter to drill new areas within the project with the hope of making new zinc discoveries.
According to Metalicity, Napier Range is underexplored due to previous ineffective and shallow drilling.
The company believes the project’s flagship Wagon Pass deposit could extend down dip and to the west.
Additionally, the company has set an exploration target range for the entire Napier Range project which predicts resources could amount to 4mt grading 15% zinc equivalent.
This range was based on characteristics identified within the Wagon Pass deposit. However, it is entirely conceptual at this stage.
Metalicity is acquiring 100% own Napier Range and Emmanuel Range project from vendors Teck and Glencore for an initial A$450,00 cash payment and a further A$1.5 million in staggered payments until February 2019.
The vendors retain an option to earn 51% in Wagon Pass if a new JORC-compliant resource is discovered by completing and sole funding a feasibility study or by spending A$20 million on assessing the current inferred resource.
Napier Range comprises two granted mining licences, one exploration licence application and a general-purpose licence.
The company’s rationale for acquiring Napier Range was its potential to complement its flagship Admiral Bay zinc project in the area.
Admiral Bay has an inferred resource of 170mt grading 4.1% zinc, 2.7% lead and 25g/t silver.
By mid-day, Metalicity’s share price had lifted almost 3% to A$0.038.