THE DRILL SERGEANT: Metalicity (ASX: MCT) has commenced exploration activities on its recently-acquired Napier Range zinc project in Western Australia.
Metalicity said the activities, along a four-kilometre strike of zinc targets, follows the completion of an institutional placement.
The company is refining high-priority targets from recent field mapping, rock chip sampling, drill hole database review and resource block model review for an upcoming drilling program.
This will include a diamond and RC resource and exploration drilling program to commence in concert with an approved program of works (POW), targeting a June Quarter start.
Resource targets within the existing Mineral Resource Estimate (MRE) of 750,000 tonnes at 5.8 per cent zinc, 7.2 per cent lead, 54 grams per tonne silver (13.6% ZnEq) will be targeted with the intent to progress the existing Inferred MRE to the Indicated category.
Exploration targets outside of the resource along the 4km strike extent will be tested for new mineral discoveries including three of nine targets the company has defined to date.
“We are very excited to commence exploration including an aggressive drill program at the Napier Range zinc project which already contains a high-grade near surface resource as well as three of nine excellent high-grade exploration targets identified to be drill tested along a four-kilometre strike extent,” Metalicity managing director Matthew Gauci said in the company’s announcement to the Australian Securities Exchange.
“A POW has been approved by the Department of Mines and, weather permitting, we aim to be drilling during the June Quarter to increase the inferred resource category to indicated while, importantly, testing some high-grade exploration targets which have not been the subject of systematic exploration, and bodes well for new high-grade zinc discoveries.”
Metalicity Limited (ASX: MCT) recently increased the company’s zinc presence in the northwest of Western Australia with the purchase of two under-explored projects.
Metalicity strengthened its zinc project pipeline with the acquisition of the high-grade Napier Range zinc project and the Emanuel Range zinc project.
The combination of the two projects equals the Lennard Shelf zinc project, located in the Lennard Shelf of the Kimberley Region, WA.
Metalicity views Napier Range as a low capital and near term producing zinc production opportunity, while Emanuel Range represents an early stage but highly prospective zinc exploration project with an extensive 30 kilometres strike of largely untested targets.
The company believes these projects will complement the development of its large scale long life Admiral Bay zinc project, located in the adjoining Canning Basin of the Kimberley Region.
The Admiral Bay zinc project is one of the world’s largest undeveloped zinc projects and contains an extensive mineralized corridor over an 18 kilometre strike.
Metalicity has established a JORC Code 2012-compliant Inferred Mineral Resource at Admiral Bay measuring 170 million tonnes at 7.5 per cent zinc equivalent (ZnEq) (4.1 per cent zinc, 2.7 per cent lead, 25 grams per tonne silver) at a cut-off grade of 3 per cent zinc plus lead (Zn+Pb).
This includes a higher-grade zone of 20 million tonnes at 10 per cent ZnEq at 7.7 per cent ZnEq cut-off.
“The acquisition of the Lennard Shelf zinc project provides more than one focus for the company,” Metalicity managing director Matt Gauci told The Resources Roadhouse.
“It delivers one near-term zinc producing asset and one highly prospective zinc exploration asset that will be of significance in our future development.
“The Napier Range zinc project is a potential high-grade, low-capital, near-term zinc development project that complements the pathway for our 100 per cent-owned Admiral Bay zinc project.
“We have already had positive results from field work, exploration targeting and base case financial modelling at Napier Range and we are keen to commence an aggressive exploration program to determine the project’s capacity to provide a source of cashflow for our ongoing advancement of the long-life Admiral Bay zinc project.
“At the same time, we will be seeking new discoveries at the Emanuel Range zinc project.”
The Napier Range zinc project is the most advanced of the recent acquisitions consisting of two granted mining licenses, an exploration license application and a granted general purpose license.
It comes with an already established JORC 2012 compliant Inferred Mineral Resource Estimate (MRE) at the Wagon Pass deposit, measuring 750,000 tonnes at 5.8 per cent zinc, 7.2 per cent lead, 54g/t silver (13.6% ZnEq).
It also hosts an adjoining Exploration Target Range (ETR) of 100,000 to 200,000 tonnes at 10 to 15 per cent zinc equivalent.
At Napier Range, Glencore and Teck (via Lennard Shelf Pty Ltd (a 50:50 joint venture) retain an option to earn a 51 per cent participating interest in the Wagon Pass tenements if a new JORC Inferred Resource has been discovered, by either completing and sole funding a Feasibility Study, or spending $20 million on the assessment of the inferred resources.
A report by independent geological consultant CSA Global, determined that extensions to the Wagon Pass deposit, and additional deposits, are considered likely if the project were to be systematically explored.
The report outlined nine targets, one for resource extensions to the Wagon Pass deposit and eight further targets, adding that that the area is underexplored.
Metalicity has a program of resource and exploration drilling planned for the March Quarter within the Wagon Pass deposit.
The drilling will also test along the four-kilometre strike extent at Napier Range, subject to requisite approvals and completion of the wet season.
As the Wagon Pass mineralisation is still open to the west, part of the upcoming drilling will entail two holes designed to test the N1 target area for a potential western and north-western extension of the mineralisation.
The holes are vertical and have been designed to test the Lower Napier Dunr5 and 4 units hosting most of the Wagon Pass mineralisation.
“Wagon Pass is of particular interest in that the mineralisation indicates there could be potential to extend the current resource to west of the deposit,” Gauci said.
“Although the remaining eight targets are located further south, they are sitting mostly in analogous settings to Wagon Pass.
“The CSA report noted that the drilling had occurred in the project area, but many of those drill holes did not test the favourable Lower Napier stratigraphy.”
The remaining eight targets are located further south, and along strike of the Wagon Pass deposit, mostly in analogous litho-stratigraphic settings within that favourable Lower Napier stratigraphy.
Metalicity agrees with CSA in that the area has been under-explored for additional deposits of the 0.5 to one million tonnes size.
“The targets for the upcoming program were selected based on having similarities with the existing Wagon Pass deposit in terms of interpreted stratigraphic position, overall geological setting, geophysical character, and proximity to exploration drilling and rock ship sampling results,” Gauci explained.
“The 750,000 tonnes ‘footprint’ of the existing Wagon Pass Mineral Resource guided the anticipated range in size of the targeted mineralisation, of between around 0.5 to one million tonnes per target.”
The Emmanuel Range zinc project is less advanced, but by no means any less-important.
It consists of one exploration tenement and two tenement applications near the Pillara, Kapok, Cadjebut and Goongewa Mines, in the Emmanuel Range of the Kimberley Region.
All the Emmanuel Range tenements cover the prospective stratigraphy and structural positions, in very close proximity to existing deposits or mines.
For example, E04/2453 is located less than two kilometres from the Pillara deposit, the largest Lennard Shelf lead-zinc discovery.
Funding for the upcoming drilling has been secured through a recently completed private placement to Australian and international institutional and sophisticated investors.
The placement was co-lead by Echelon Wealth Partners Inc. and Paradigm Capital Inc to raise $2.61 million via the issue of 58.25 million shares at 4.5 cents per share, with a 1 for 2 free attaching option exercisable at eight cents with a five-year term.
Besides being used to undertake resource and exploration drilling at the Napier Range project, the cash will also be put towards progressing Pre-Feasibility Studies (PFS) at the Admiral Bay project.
It will also be of assistance as the company undertakes due diligence and evaluation of a dual listing on the TSX Venture Exchange.
“The placement resulted in a number of key North American institutional funds joining our register, which is encouraging as we complete due diligence and evaluation of a TSX Venture Exchange listing,” Gauci said.
“It also allows us to concentrate on drilling and feasibility studies on our 100 per cent-owned Napier Range and Admiral Bay projects, while considering a spin out of our cobalt and lithium projects.”
THE DRILL SERGEANT: Metalicity (ASX: MCT) has completed the acquisition of the Napier Range zinc project, located in the Lennard Shelf of the Kimberley Region in Western Australia.
Metalicity considers the high-grade Napier Range project to represent a low capital and near term producing zinc production opportunity with excellent exploration potential.
The project currently consists nine targets that have been identified for drill testing along a four-kilometre strike.
Metalicity has resource and exploration drilling planned for the March Quarter within the Wagon Pass deposit as well as along the 4km strike extent at Napier Range, subject to requisite approvals and completion of the wet season in the Lennard Shelf of the Kimberley Region.
At Napier Range, Glencore and Teck (via Lennard Shelf Pty Ltd (a 50:50 joint venture) retain an option to earn a 51 per cent participating interest in the Wagon Pass tenements if a new JORC Inferred Resource has been discovered, by either completing and sole funding a Feasibility Study, or spending $20 million on the assessment of the inferred resources.
“Securing the Napier Range zinc project is a significant step forward for Metalicity’s zinc strategy by providing a potential high-grade, low capital, near term zinc development project that complements the pathway for our 100 per cent-owned Admiral Bay zinc project,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.
“Metalicity has completed field work, exploration targeting and base case financial modelling and looks forward to commencing an aggressive exploration program to determine the projects capacity to provide a source of cashflow for the company’s ongoing advancement of the long-life Admiral Bay zinc project, while also seeking new discoveries at the Emanuel Range zinc project.”
