Metalicity, Nex continue gold search

Shares in both Metalicity and Nex Metals Explorations were up today after the joint venture recommenced drilling at the high-grade Kookynie gold project in Western Australia.

The project lies about 50 kilometres south of Leonora and is host to seven significant prospects, Metalicity says.

Kookynie includes the historic Cosmopolitan goldmine, which produced 360,000 ounces at a high average head grade of 15 grams per tonne of gold.

Metalicity said recent holes drilled had returned significant intercepts from phase one of the 2020 drill program, with near surface intersections including 4 metres at 16.3g/t of gold at the Leipold prospect.

Intercepts at the McTavish prospect included a hit of 2 metres at 14.11g/t of gold.

Metalicity said a reverse circulation drill program would be completed over the coming weeks at Leipold, McTavish and other prospects.

Managing director Jason Livingstone said the company was excited to follow up on the June drill campaign.

“The results we received were incredibly consistent and high grade,” he said.

“The company is well-funded to execute this program and I sincerely look forward to presenting the results over the coming period.”

Further drilling is expected after a review of recent drone magnetic observations, Metalicity said.

The company had signed a farm-in deal with Nex Metals in May 2019 to explore both the Kookynie and Yundamindra projects in the Eastern Goldfields.

Under the deal, Metalicity would spend a minimum of $500,000 to drill test the projects within one year and a total $5 million within five years to earn a 51 per cent operated-interest in both projects.

Shares in Metalicity closed up 4.2 per cent to trade at 2.5 cents, while Nex Metals shares closed up 11 per cent to trade at 7 cents.