Metalicity’s Announcement Pushes Share Price Higher (ASX:MCT)
Metalicity Ltd’s [ASX:MCT] share price nearly reversed all losses made this week, thanks to an announcement regarding drilling at its Kookynie Gold Project.
Drilling results at Kookynie have varied.
Of the 44 holes drilled, 12 never intersected any significant gold.
Though the second phase of drilling promised to reveal more about the size of the resource.
At the time of writing shares are up 0.2 cents, or 8.7%, to 2.5 cents per share.
The share price appears to have stabilised after hitting 4.5 cents back in June.
Shares now seem to be getting resistance at the 2.5-cent level, as the first round of drill results from phase 2 are expected in the next week or so.
An announcement for an announcement
MCT appear to be masters of suspense.
The announcement today is in much the same vein.
MCT announced that the phase two drilling programme is progressing well and is on schedule.
And all samples derived from the drilling to date have been submitted for analysis.
Though the crux of the announcement was to inform investors MCT will be releasing assay results as and when they are ready over the coming weeks.
With the first results due next week.
Potential for a good resource estimate
But onto news you can use.
There are significant portions of mineralisation zones at Kookynie still open.
With phase two focused on testing those areas.
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MCT said, depending on the results they get back, that the current drill program may be significantly expanded.
The figure below shows some of the target zones.
At this stage MCT is working hard towards potentially converting the exploration targets to JORC 2012 compliant mineral resource estimates.
Meaning we could soon get an idea of the size of the gold resource.
If we see similar results in phase one, then the share price could build some solid upward momentum on the way to getting that maiden resource estimate.
Varied drilling results may be holding it back for now.
However, the absence of gold in those samples doesn’t necessarily mean an absence of gold below the surface.
Of course, we’ll be sure to keep you updated with the latest developments from MCT. In the meantime, make sure you subscribe to The Daily Reckoning Australia. It’s a great way to stay ahead of the curve when it comes to Australian gold stocks. It’s free too. Subscribe here.
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