Metalicity pegs new ground over zinc targets in WA
A bit of clever technical detective work might well have changed the fairway of Metalicity’s large Admiral Bay zinc project, south of Broome in the West Kimberley region of WA.
The company has reinterpreted open file Government data from the 2017 Canning Basin Structurally Enhanced view of Economic Basement or “SEEBASE” model, that whilst primarily developed for the oil and gas industry, has now found favour in the exploration for hard rock metalliferous deposits at depth.
According to Metalicity, it recently used the same data set extensively to go on a pegging spree in the nearby Paterson Province, which fortuitously covered an area over which the company was targeting gold, copper and base metal mineralisation.
Near Admiral Bay, interpretation of the SEEBASE data appears to show that the region directly to the southeast could potentially host a structurally modified geological domed sequence suitable for trapping mineralised fluids and hence, enhance the prospectivity for base metal mineralisation.
These same interpreted trap sites seem to coincide with a zone of high-grade base metal mineralisation within the existing Admiral Bay resource and so they represent valid exploratory drilling targets outside the defined deposit.
The data also show that the host Nita Formation sequence may well come nearer to surface in this area, implying that any mineralisation present might exist at shallower levels than Admiral Bay, which commences at a depth of 1,250m.
Based on this, the company has pegged a new exploration licence covering the interpreted region of interest.
Metalicity management indicates that these geological advancements could improve the future prospectivity of the district and increase value for its 82.5%-owned subsidiary Kimberley Mining Limited.
The latter company is proceeding with an IPO on the TSX-V for Admiral Bay and other Kimberley-focussed base metal projects it has agreed to purchase from Metalicity and then develop further on full listing, as and when market conditions permit.
Metalicity has now also acquired historical seismic data for the southeast extension to Admiral Bay, with stratigraphic interpretation and reprocessing of the data already underway.
The company’s geophysical consultants have suggested follow-up airborne gravity surveying over the new regions of interest could potentially locate areas of prospective mineralisation at depth, although the work would be subject to funding within Kimberley Mining.
Commenting on the additional interpretation at Admiral Bay, Metalicity CEO Mat Longworth said: “We are very pleased with the technical developments at Admiral Bay, which suggest the project may also host additional quality zinc targets.”
“The work completed to date has provided robust geological interpretation which we believe has the potential to significantly improve attractiveness of our zinc assets – which already represents one of the world’s major undeveloped zinc deposits.”
“It may even be possible, with the completion of a Falcon Plus Airborne survey, to screen and rank traps sites based on the gravity signature and thus target any future drilling more effectively.”
Metalicity acquired the Admiral Bay zinc deposit from a wounded Kagara Ltd for just over A$3m in late 2015 and proved up an impressive resource, which now boasts 170 million tonnes grading 4.1% zinc, 2.7% lead and 25g/t silver, which is double the mineral resource inventory it inherited.
The company has never been able to extract what it considers fair value for the project on the Australian bourse and the proposed Canadian listing through Kimberley Mining looks set to provide enough cash to get the massive project reinvigorated and on a pathway to future production.
This week’s announcement of potentially increased prospectivity directly adjacent to Admiral Bay may well be the impetus needed to ball rolling again on the proposed spin out of Metalicity’s Kimberley-based assets.
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