Metalicity, Nex Metals reveal ‘spectacular’ results from drilling at Kookynie gold project

Assays from a phase one drilling program at the historic Kookynie gold project in WA’s eastern goldfields region have yielded “spectacular” first assays for Perth-based explorer Metalicity (ASX: MCT) and joint venture partner Nex Metals Explorations (ASX: NME).

The first 11 holes of the initial 44-hole program confirmed extensive high-grade, near-surface gold mineralisation at the Leipold prospect, with 10 holes returning a significant intercept.

Liepold is one of seven primary prospects within Kookynie.

The others are Champion, McTavish, the Altona Trend and Diamantina, Cosmopolitan and Cumberland (collectively known as the DCC Trend).

Best results

Among the best results were 4m at 16.3 grams per tonne gold from 42m, including 3m at 20.7g/t from 42m; and 9m at 5.7g/t gold from 35m, including 2m at 17.9g/t from 40m.

Also recorded were assays of 4m at 13g/t gold from 33m; 3m at 9.92g/t from 18m; 4m at 7.08g/t from 18m; and 3m at 6.81g/t from 9m.

Results from the remaining 33 holes are expected within coming weeks.

Mineralised structure

Metalicity managing director Jason Livingstone said the company had managed to intersect the Kookynie mineralised structure at all prospects to date and especially at Leipold.

“With every drill hole completed, we continue to illustrate that Kookynie has the potential to be a prolific gold area,” he said.

“The results are very shallow, which if converted to resources and reserves, could potentially be [viable to] an open pit development.”

Step-out work

The Kookynie phase one program was designed to confirm the mineralisation observed in the project’s earlier programs, and continue the step out from historical drilling at the Leipold and McTavish prospects.

Metalicity completed 34 reverse circulation holes at Leipold for a total of 1,721m in an area below known historical workings.

“We are pleased that each of the drill holes intersected the structure, with 10 of the 11 available results returning a significant intercept, demonstrating the up 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.”

Results from the entire program will be coupled with a yet-to-be-completed drone magnetic survey, to continue evaluation of Kookynie’s known prospects.

Target generation on 8km of untested strike potential will also be evaluated and drill targets defined.

Mr Livingstone said the company would expand the next program of work to evaluate the Champion and Altona prospects.

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

At midday, shares in Metalicity were trading 71.43% higher at $0.024, while Nex Metals was up 75% to $0.14.