Could this Gold Find Shift the Momentum of the Metalicity Share Price?
The Metalicity Ltd [ASX:MCT] share price is up today on intersecting visible gold in the first hole of its drilling program at the Kookynie Gold Project.
At time of writing the MCT share price is up 11.11% to trade at 2 cents per share.
The MCT share price has plateaued in recent months, finding its floor around the 1.8-cent mark.
Though this is a far cry from its high in June 2020, MCT looks like it could springboard off its newly found floor.
Visible gold demonstrates high-grade potential
In a market update released this morning, MCT said it had discovered visible gold in the first drill hole at the Cosmopolitan Prospect at its Kookynie Gold Project in WA.
The find is located about 100 metres to the north of the historic high-grade Cosmopolitan mine workings.
The Cosmopolitan mine has historically produced 360,000 ounces at a very high average head grade of 15 grams per tonne (g/t).
MCT say they believe this indicates possible extensions to the known mineralisation.
The visible gold was observed in drill samples over a three-metre interval from 228 metres depth and is interpreted to be consistent with the overall Cosmopolitan Gold Mine mineralisation.
So, what does this mean for the Kookynie Gold Project?
In my book, this doesn’t really mean a lot.
Don’t get me wrong; it’s great to see visible gold because it can indicate some seriously high-grade mineralisation.
However, this is just one hole and MCT has not yet completed testing that would indicate the grading of these samples.
The speculators have reacted positively to this news because historic sampling done in 1905 returned results of:
- 2m at 428.6 g/t
- 2m at 433.2 g/t
- 0m at 330.6 g/t
I would remain cautious however; the market hasn’t reacted very positively to results from Kookynie recently.
When we last visited the MCT share price, result from the gold project had pushed the share price down — and this was around the time of the gold price highs.
Could we see a return this year?
The backlog of assays from the current drill program are scheduled to be returned to MCT next week, meaning we could know a bit more of what’s happening at Cosmopolitan then.
MCT have returned to work with two drill rigs targeting their Leipold Prospect and Cosmopolitan Gold Mine.
The explorer noted that the balance of the 2020 drilling programme is still pending, though initial drilling observations are favourable.
Which means we cold see MCT shares continue to gather momentum through the year.
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For The Daily Reckoning Australia