Metalicity receives positive results from Admiral Bay Scoping Study

THE DRILL SERGEANT: Metalicity (ASX: MCT) announced positive results from a recently completed Scoping Study on the company’s 100 per cent-owned Admiral Bay zinc project in the Kimberley region of Western Australia.

Metalicity said the Scoping Study confirmed the view of the company Board that the Admiral Bay deposit has the potential to support a long life and low cost zinc/lead/silver operation of world class scale.

Key outcomes from the Study include:

A new geological model and Inferred Mineral Resource Estimate – approximate 30 increase in zinc equivalent (ZnEq) grade and 100 per cent increase in ZnEq contained metal;

Open stoping (with backfill) to be used as the base case mining method with recommended PFS option to evaluate longwall mining given rock properties, latest deposit geometry and further automation/cost benefits;

The ore does not currently demonstrate deleterious metallurgical behaviour and high projected metal recoveries (90 to 95%) through a conventional flotation processing route, PFS underway to optimise; and

Sealed container trucking and shipping through existing Port Hedland facilities have emerged as the preferred export path.

As a measure of viability, Metalicity explained it requires Admiral Bay to have a aspirational potential mine life in excess of 20 years at a targeted ore throughput rate of 3 to 5 million tonnes per annum.

The company believes the Scoping Study has demonstrated the Admiral Bay project is potentially viable and could achieve this hurdle rate/

Metallicity indicated it will commence of a PreFeasibility Study (PFS) on the Admiral Bay zinc project with its initial focus being to refine the preferred PFS pathway, including more detailed evaluation of specific development options and mining techniques.

While this is happening, Metalicity will be undertaking a process to seek a Joint Venture partner to participate in the PFS process and allow acceleration of the targeted Admiral Bay development timeline.

“We are excited that the Scoping Study has confirmed Admiral Bay as capable of delivering a large, long life and potentially low cost zinc and lead operation of world class scale,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

“The Study has demonstrated that the project has the clear potential to achieve Metalicity’s required hurdle rate.

“The strategic nature of Admiral Bay needs to be understood in the context of the long-term fundamentals for zinc and lead markets.

“The recent and imminent closures of world-class, large scale zinc mines are expected to create a significant supply shortage in the global zinc market.

“There are very few large, long-life and potentially low cost zinc projects located in stable, first world mining jurisdictions that can be brought into production to address this supply shortage.

“Most industry analysts are forecasting strong zinc price fundamentals in the near future and the company is now focussed intently on progressing the Pre-Feasibility Study at Admiral Bay in conjunction with seeking a joint venture partner for the project.”

Website: www.metalicity.com.au