Metalicity advancing world class zinc and lithium projects

THE INSIDE STORY: Metalicity Limited (ASX: MCT) is commence a Pre-Feasiblity Study on its large scale, long life zinc-lead deposit at Admiral Bay, and set to commence drilling in the world class emerging lithium district in the Pilbara.

Metalicity is progressing talks to introduce a Joint Venture partner to its 100 per cent-owned Admiral Bay zinc project, located in the Kimberley region of WA.

The introduction of a partner is intended to support the PFS that will build on the successful outcomes of a Scoping Study completed in mid-2016.

The Scoping Study was carried out by leading technical consultant SRK Consulting and confirmed the Admiral Bay deposit is capable of delivering a large scale, long life, zinc/lead/silver operation with low operating costs.

Admiral Bay is Australia’s largest undeveloped zinc deposit – the fourth largest in the world – and contains 7 million tonnes of zinc, 4.6 million tonnes of lead and 137 million ounces of silver over a strike length of 15 kilometres within a 130 kilometre mineralised corridor controlled by Metalicity.

The project is located 140km south of Broome and favourably placed in terms of existing power, port and transport infrastructure.

“Our initial evaluation of the mineralisation at Admiral Bay leads us to believe it will be amenable to low cost, automated mining techniques so that will be a key focus of the early stages of a Pre-Feasibility Study underway,” Metalicity managing director Matt Gauci told The Resources Roadhouse.

“In parallel, we’re in discussions with potential Joint Venture partners to participate in the PFS and allow acceleration of the targeted Admiral Bay development timeline.

“We are confident there will be strong interest in securing exposure to what is one of the only truly significant zinc deposits in a first-world jurisdiction at a time when the zinc market is forecast to be moving into deficit.”

In conjunction with progressing Admiral Bay, Metalicity is poised to capitalise on its first mover status in the world-class Pilgangoora/Wodgina lithium district in Western Australia’s Pilbara where it commands one of the largest lithium-focussed landholdings.

Earlier this year the company completed detailed mapping and sampling across several of its project areas as part of a systematic program to prioritise drill targets areas with potential for major pegmatite-hosted lithium deposits.

This work represented the first phase of Metalicity’s accelerated $1 million exploration program across its WA lithium projects, which also includes ground adjacent to the Ball Hill and Greenbushes Lithium Operations.

“The team has made great strides in our lithium strategy in the past 12 months and we’re champing at the bit to have a drill rig turning at Pilgangoora South by the end of November,” Gauci said.

The Pilgangoora South project comprises more than 143 square kilometres of tenure in the Wodgina/Pilgangoora lithium region, home to Pilbara Minerals’ (ASX: PLS) Pilgangoora lithium project (128.6 million tonnes at 1.22 per cent lithium oxide), Altura Mining’s (ASX: AJM) Pilgangoora lithium project (39.2 million tonnes at 1.02 per cent lithium oxide) and Mineral Resources’ Wodgina lithium/tantalum operation.

Two prospective targets were prioritised by Metalicity after initial field work at Pilgangoora South, the Stannum and Turner River North prospects.

Stannum will be the first target drilled by Metalicity, following on from an analysis of hyperspectral data and detailed mapping.

This work identified five key pegmatites with the potential to host rare metal mineralisation and three will be drilled in Metalicity’s initial program.

“The program will consist of vertically oriented RC drill holes that will allow investigation of the subsurface expression of the ‘stacked’ flat-lying pegmatite bodies we had previously observed in mapping,” Gauci said.

“The targets are ideally located close to existing infrastructure and proposed downstream lithium processing facilities so we believe there is the potential for considerable value creation for our shareholders.”

As well as a lot of activity happening on its tenements in the north of WA, Metalicity is also busy in the Goldfields region of the state at its Lake Cowan lithium project.

Metalicity has just kicked off a raft of exploration activities at Lake Cowan having executed Heritage Agreements with the Ngadju Traditional Owners and receiving a subsequent grant of Exploration Licences E15/1502 and E15/1503 by the Department of Mines and Petroleum.

The Lake Cowan lithium project is located immediately south and east of the Bald Hill lithium operations owned and operated by Alliance Mineral Assets.

As is happening in the Pilgangoora region in the north, there is also a lot of lithium interest in the south of WA.

Tawana Resources (ASX: TAW) recently acquired Options over the right to earn up a 50% interest in the lithium rights at Bald Hill and 50 per cent of mineral rights, processing plant and infrastructure at the Bald Hill operation.

Metalicity is prospective geology of the area is dominated by Archaean Mt Belches Formation metasedimentary units, intruded by granites and pegmatites. The main structure of interest is the Mt Belches-Bald Hill pegmatite belt, which strikes southwest into Metalicity’s Lake Cowan project.

“The continuation of this belt gives us a target area approximately 10 kilometres long and four kilometres wide which gives us a big opportunity to define lithium mineralisation in this rapidly emerging lithium district,” Gauci said.

As with its Pilbara projects, Metalicity is undertaking a program of field work and a detailed review of historical results while the tenements are in the process of being granted.

This will be quickly followed by a new program of comprehensive grid of surface and auger geochemical sampling to further refine target areas for subsequent reverse-circulation drilling.

At its Greenbushes lithium project, Metalicity controls 870sqkm within 35km of the world’s highest grade spodumene deposit, the Greenbushes mine.

The company’s project area covers a similar geological setting to the world-class mine and outcropping pegmatites have been identified in recent fieldwork.

Data analysis is continuing ahead of a maiden drill program following granting of the tenements.

To complement its lithium portfolio, Metalicity has continued its opportunistic and value-driven business development strategy through a low cost acquisition of a cobalt project.

The Kyarra cobalt project lies within the Proterozoic Yerrida Basin on the northern margin of the Yilgarn Craton, again in WA.
 
Like the company’s lithium projects, the Kyarra project is in a hot neighbourhood for the commodity it is chasing.

The project adjoins Dragon Energy’s (ASX: DLE) Tabac cobalt-gold project where substantial intersections of cobalt have been reported including: 80m at 0.77 per cent cobalt.

The location and stratigraphic position of the observed cobalt anomalism at Kyarra has been previously interpreted to have numerous similarities to the mineralisation model of the significant copper-cobalt deposits of the Zambian Copper Belt.

The three Exploration Licence Areas give Metalicity a dominant land holding in the Yerrida Basin district.

“The sovereign risk associated with sources of cobalt supply and the lithium-ion battery demand drivers meant the opportunity to acquire an opportunity like Kyarra earlier this year was compelling,” Gauci said.

“Field exploration work and a detailed review of historical exploration and geophysical data is well advanced and we are developing priority areas for drilling once the Kyarra tenements are granted, expected in the first half of 2017.”

Metalicity Limited (ASX: MCT)
…The Short Story

HEAD OFFICE
6 Outram Street
West Perth WA 6005

Ph: + 61 8 9324 1053

Email: info@metalicity.com.au
Website: www.metalicity.com.au

DIRECTORS
Andrew Daley, Matthew Gauci, Chris Bain, Mathew Longworth