Metalicity Limited (ASX: MCT)

With a bold new exploration strategy and a voracious appetite for acquiring patches of dirt in some of Western Australia’s most prolific mining regions, Metalicity is fast emerging as a junior exploration player with some serious upside.

The WA-focused base metal minnow has been running the ruler over the red-hot Paterson Province copper belt and the prolific Fraser Range, acquiring exploration license applications in both regions.

In the Paterson Province, Metalicity has generated more than 5,000 square kilometres of new Project Area Applications in close proximity to some of the names which dominate the region.

Such as the Nifty mine that has produced more than 40,000 tonnes of contained copper concentrate per annum, the Telfer mine, which hit over 425,000 ounces of gold and 16,000 tonnes of copper last financial year, as well as Rio Tinto’s new darling deposit, Winu.

Metalicity’s Desert Queen project, which consists of 679sqkm lies right amongst these giants, adjoining ground held by Rio Tinto.

Its Mandora project is even larger, containing 1,487sqkm of prime Paterson land to the north-west of Winu and adjoins tenements held by Rio Tinto and Fortescue Metals Group.

The projects are yet to be drilled; however, the company believes its odds of a major find are enhanced by a clever piece of geological interpretation conducted by the renowned geo-consultants Corporate Geoscience Group (CGSG) on behalf of Metalicity.

The Group has used artificial intelligence and machine learning to analyse the findings of the Geological Survey of Western Australia’s 2017 SEEBASE project – a recently published project analysing the Canning Basin and adjacent Paterson Province.

While SEEBASE was primarily developed for the oil and gas industry, the consultants have used advanced technology to manipulate the data and gain a new understanding of the Province for metals prospecting.

The results have been extremely encouraging, allowing Metalicity to identify targets that are most likely to yield results with shallower cover.

Additionally, this scientific edge has influenced further project acquisitions.

In February this year the company acquired three new projects in the Paterson that have all shown promise based on data interpretation from SEEBASE.

In the Fraser Range the company has also shown a preference for data-driven project acquisitions, adding two areas of interest to its books.

The areas have received 635 metres of drilling by Kennecott Explorations during 1980, with the work searching for Olympic Dam-style mineralisation.

While the exploration failed to find an Olympic Dam deposit it did intersect a mafic-intrusive anomaly – a rock type now known to be prospective for Fraser Range style nickel-copper sulphides, found at the Nova-Bollinger Mine and the Silver Knight deposit.

Metalicity has since conducted a deep dive into the historical work, even inspecting the core from Kennecott’s drilling, which was still available at the Kalgoorlie Core Library, concluding the project areas offer a unique opportunity to target large-scale and economic deposits of nickel-copper mineralisation.

“It is very pleasing to see Metalicity build its asset base in Western Australia with some very interesting copper project additions further strengthening our portfolio of base metal assets,” Metalicity CEO and executive director Mat Longworth told The Resources Roadhouse.

“The company has been through a period of transition and is now emerging as a highly attractive prospector with a clear value proposition.”

While Metalicity has amassed a large project base it has also been inching closer to a major cash generating event through the divestment of its zinc assets.

The market junior has spent the past few years inspecting the Admiral Bay zinc project, which is one of the world’s largest undeveloped deposits of zinc.

The company is currently in the process of spinning out the asset to the Canadian TSX Venture Exchange, where it aims to attract North American investors with a risk appetite for large projects.

The IPO is set to progress as soon as the global zinc market improves, providing shareholders with the tantalising prospect of investing in a market junior on the verge of a major cash windfall with a host of prospective projects.



Directors: Andrew Daley, Mathew Longworth, Justin Barton