Metalicity reports high-grade gold at Kookynie, scoops up more ground nearby
Metalicity revealed 1m at 80.17g/t gold had been intercepted at Kookynie.
Metalicity (ASX: MCT) has reported high-grade gold intercepts at its Kookynie project in Western Australia’s eastern goldfields, while also scooping up more nearby ground and effectively doubling the project.
Drilling at the McTavish prospect uncovered 5m at 17.9 grams per tonne gold from 48m, including 1m at 80.17g/t gold from 51m.
Meanwhile, Leipold returned 6m at 9.4g/t gold from 26m, including 2m at 19g/t gold from 26m.
Over at Champion, 2m was intersected grading 25.2g/t gold from 28m to end of hole, including 1m at 42g/t gold from 28m.
Metalicity managing director Jason Livingstone said he was “extremely pleased” to start the year with “spectacular” drill results – particularly receiving the 80.17g/t gold assay.
“With our three drilling programs to date, we have managed to intersect the mineralised structure at all prospects with every drill hole, and continue to illustrate that the Kookynie gold project has the potential to be a prolific gold project.”
“These results are also very shallow, which if converted to resources and reserves, could be potentially open pittable,” he added.
Boosting Kookynie gold project
Metalicity agreed to farm-into Kookynie and the Yundamindra gold projects spanning an initial 2,400 hectares from Nex Metals Exploration (ASX: NME) in May last year.
Since the agreement was made official, Metalicity has observed tenement activity in the region and pegged up more land and recently moved to acquire a further 3,300ha of tenements across the Kookynie-Niagara trend.
The new tenements now boost the Kookynie project to more than 7,000ha in the region.
According to Metalicity, the new tenements host similar geophysical signatures to the Niagara trend and, with mineralisation believe to lie under a think alluvial cover.
The tenements also host a historic operation that produced 40 tonnes at 12g/t gold at the turn of the century.
Additionally, the new ground has had little to no historical exploration.
“Since entering into the farm-in agreement with our partners Nex Metals, we have increased our land holding through further strategic farm-in agreements and tenement pegging exercises,” Mr Livingstone noted.
“We acknowledge that one aspect of the Kookynie area that has hampered historical exploration is the fractured ownership in the region.”
Metalicity is earning a 51% stake in the projects by spending $5 million on exploration and development over five years.
The company noted its acquisitions and tenement pegging activities contribute towards that $5 million.