Metalicity (ASX: MCT) is the latest explorer to peg up land in the Pilbara’s Paterson Province, with several companies actively snapping up ground after rumours began circulating 12 months ago that Rio Tinto’s (ASX: RIO) had stumbled upon a massive copper discovery in the area.
Metalicity has now jumped on the copper-gold bandwagon after announcing this morning it had applied for 2,166sq km of exploration licences in the province.
The news pushed its share price up more than 56% to hit $0.025 during morning trade.
According to Metalicity, the tenements adjoin Rio Tinto’s land and lie within a copper corridor that hosts “numerous underexplored copper occurrences”.
“The Paterson ranks highly on our list of prospective geological terrains for discovery of copper mineralisation in the Pilbara and we are encouraged by activity of major companies nearby, which supports our prospectivity models,” Metalicity managing director Matt Gauci said.
“Metalicity retains significant experience exploring the Paterson over the last 20 years and is currently compiling all available geological, geochemical, geophysical datasets to assist guiding future exploration activities,” Mr Gauci added.
The licence applications include the Desert Queen project which covers 679sq km in the province. The project is along strike from Rio Tinto’s tenements and is within an “interpreted copper corridor”.
Meanwhile, the 1,487sq km Mandora Beach project is also within the copper corridor and adjoins both Rio and Fortescue Metals Group (ASX: FMG) projects.
Both of Metalicity’s new projects have not been subjected to modern exploration, with the company claiming it considers them prospective for “major copper discoveries”.
As part of its revised focus on nickel and copper, Metalicity is in the process of divesting its WA-based zinc and lithium assets.
The company is looking to dispose the assets and bring in about $35 million in cash and shares.
Metalicity is spinning out its zinc tenements by listing Kimberley Mining on Canada’s TSX-V exchange. Once Kimberley lists on the TSX-V, Metalicity will hold a 40% stake.
The company is progressing the sale of its lithium assets.
By mid-afternoon trade, shares in Metalicity were up 37.50% at $0.022.