Metalicity (ASX: MCT) has appointed CSA Global to carry out a geological review of its four Western Australian-based lithium projects to generate and prioritise exploration targets.
Despite the initial four-hole RC drilling program returning disappointing grades (>0.5% lithium), the company remains hopeful.
The company’s lithium projects encompass 1,350 square kilometres throughout the state including known lithium-producing districts: Greenbushes in WA’s south and Wodgina-Pilgangoora in the Pilbara.
“Given the size of the company’s lithium portfolio and interest from end-users in the sector, we believe this is a right time to appoint lithium experts from CSA Global to conduct a targeting review of our entire lithium portfolio and determine the best strategy to progress these assets,” Metalicity managing director Matt Gauci said
Metalicity has been actively exploring its Pilgangoora North project in the Pilbara due to its proximity to Pilbara Minerals’ lithium deposit which is the second largest hard rock lithium deposit in the world. It has returned intersections such as 21m grading 2.64% lithium oxide.
Metalicity acquired its Pilgangoora North project from Fortescue Metals Group in January this year for $250,000 and a mixture of shares and options in Metalicity, based on performance achievements.
Recent field work at the project confirmed pegmatites about 1km from Pilbara Minerals’ hard rock lithium deposit.
“The initial four-hole drill program at Pilgangoora North targeted the most accessible pegmatites which represent a small fraction of the mapped or interpreted pegmatites that have been identified at the project, some, of which, are confirmed from rock chip sampling as lithium bearing,” Metalicity managing director Matt Gauci said.
In addition to its lithium portfolio, Metalicity also has the Admirable Bay zinc project in WA’s Kimberley region, which has an inferred mineral resource of 170 million tonnes grading 7.5% zinc equivalent.
According to the company, Admirable Bay is the fourth largest undeveloped pure zinc project in the world.
Metallicity’s other projects include Lennard Shelf (zinc) and the Kyarra (cobalt).
Zinc market dynamics
Last month Small Caps published a report on the zinc market revealing it had slipped into a supply deficit.
Major zinc miner Teck Resources anticipates zinc production would not be able to keep up with consumption until at least 2020.
The company projects that more than 4.3 million tonnes of additional zinc output is required annually to meet zinc demand by 2025. According to Teck Resources, the current global zinc project pipeline is insufficient to meet this need.