THE BOURSE WHISPERER: Metalicity (ASX: MCT) has entered a farm-in agreement with Nex Metals Explorations (ASX: NME) for the Kookynie and Yundamindra projects in the Eastern Goldfields of Western Australia.
Metalicity said exploration to commence during May with drilling planned for June quarter.
Metalicity, as part of the Farm-In, is required to initially spend a minimum $500,000 within 12 months, moving to a total of $5 million spend within and up to five years to earn 51 per cent of the projects inclusive of the initial spend and time duration.
At that point, a Joint Venture is anticipated to be formed between the parties.
“This deal provides us with access to one of the Eastern Goldfields’ last remaining underexplored, significant production centres,” Metalicity CEO Mat Longworth said in the company’s announcement to the Australian Securities Exchange.
“The team at Metalicity have significant experience in this region with over 30 years of combined district experience in successful exploration including the Raleigh and Sunrise Dam mines.
“These projects provide Metalicity with the opportunity to define significant gold resources, building off historic exploration, by employing modern techniques and science.
“Exploration will commence during May, a fast start due to the experience of Metalicity’s team and the cooperative work undertaken with NEX’s on the ground team.
“Through a results-based exploration program across both projects our goal is to develop a significant resource and reserve base, from which to eventually commence a sustainable mining operation focusing on grade and margin.
“This is a very exciting development, Metalicity’s stated three-part strategy of near-term production assets, the very large Admiral Bay zinc asset through our holding in Kimberley Mining and the extensive early stage land holding the Paterson Province and Fraser Range is coming together.”