Metalicity and Nex Metals announce best intersections to date from Kookynie gold drilling

Metalicity Kookynie gold project Nex Metals Explorations ASX MCT NME
Drilling at the Leipold prospect has returned high-grade gold intercepts of up to 100 grams per tonne.

The second batch of assays from a Phase 2 drilling program at the Kookynie gold project in Western Australia’s eastern goldfields has returned some of the best intersections to date for joint venture owners Metalicity (ASX: MCT) and Nex Metals Exploration (ASX: NME).

Results from 23 drill holes for a total 1,728m at the project’s Leipold prospect have confirmed “significant and extensive” high-grade gold mineralisation with intercepts grading up to 100 grams per tonne.

Best assays were 4m at 26.91g/t gold from 65m, including 1m at 100.77g/t from 67m; and 8m at 9.33g/t gold from 97m, including 1m at 40.84g/t from 104m.

Also received were assays of 4m at 17.29g/t gold from 103m, including 2m at 28.79g/t from 104m; 6m at 6.82g/t gold from 49m; and 7m at 5.19g/t gold from 76m.

Metalicity managing director Jason Livingstone said the continued strong results bode well for the project’s future.

“These recent assays are some of the best intersections drilled to date, and the [near future] is shaping up to be an incredibly exciting time as we try to capitalise on these continued outstanding results,” he said.

Multiple prospects

Metalicity entered a farm-in agreement with Nex Metals in May 2019, committing to spend $5 million on exploration within five years to earn a 51% stake in the Kookynie project.

Kookynie is host to multiple prospects known as Champion, McTavish, Leipold, Altona Trend, and Diamantina, Cosmopolitan and Cumberland (collectively named the DCC Trend).

Metalicity’s Phase 2 program aimed to confirm the mineralisation observed in previous drilling and to define the shallow and down-dip mineralisation previously observed at Leipold.

“We are pleased the results have confirmed significant extensions, demonstrating the down dip and strike continuance of mineralisation beyond the previously defined limits,” Mr Livingstone said.

“This is incredibly exciting and continues to demonstrate very shallow mineralisation exists at Leipold and the down dip extensions are showing the continuation of high-grade plunges.”

Next steps

Assays are still pending from 38 drill holes at McTavish, Champion and Leipold, with the information to be used to move the prospects into the resource definition phase.

The results of a drone magnetic survey have demonstrated a further 21 greenfield targets in the region and Mr Livingstone said the company intends to expand its drilling program to evaluate these as well as the priority Champion, Fortuna and Altona prospects.

“With such spectacular results being returned from our work on a consistent basis, coupled with the targets defined from the drone survey, we are well-funded and poised to significantly accelerate our exploration and development efforts at Kookynie,” he said.

Metalicity will also endeavour to return to the Cosmopolitan gold mine area where 360,000 ounces were produced historically at a head grade of 15g/t gold over the life of that mine between 1896 to 1922.

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