New Look at Kookynie Sends Metalicity Share Price Down
The Metalicity Ltd [ASX:MCT] share price was on the move upwards today, as investors are given a better glimpse at the scope of the Kookynie Gold Project.
But the upwards momentum was reversed in the first hour of trade.
Shares had started moving higher after we were teased with phase two drilling results.
That momentum looked set to continue today, but the cooling of the gold price appears to have weighed down MCT’s share price.
At the time of writing MCT shares are trading 0.1 cents lower or 3.45% to trade at 2.8 cents per share.
First assays hint at high potential
Today MCT released its first round of results from phase two of its drilling program at Kookynie.
Things appear to be taking shape at the Leipold Prospect with shallow, high-grade mineralisation.
- 10 metres at 7.44 grams of gold per tonne (g/t) from 108 metres, including 2 metres at 21.03 g/t from 111 metres
- 2 metres at 35.23 g/t from 124 metres
- 9 metres at 3.96 g/t from 35 metres, including 2 metres at 9.25 g/t from 42 metres
- 7 metres at 3.31 g/t from 27 metres, including 2 metres at 7.01 g/t from 32 metres
The phase two program was designed to significantly step out and continue to confirm the mineralisation observed in phase one.
And from the first set of results it appears to have achieved its purpose.
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The first 16 holes of the 40-hole program have confirmed significant and extensive high-grade, near-surface gold mineralisation at the Leipold Prospect.
According to MCT, the mineralisation continues to the southern strike extents and down dip as well.
As is illustrated in the figure above.
The below is for comparison.
Basically, today’s results extend the known mineralisation at Leipold.
Noteworthy is the consistent widths and relatively consistent grades observed.
With that, MCT appear confident with their interpretation of the geology at Kookynie.
The latest results are the first to validate the company’s structural interpretation of the area.
MCT said it will apply this learning to other targets within the project, and this will ensure that targets are evaluated efficiently.
More to come
With the lion’s share of the assays still pending, the picture at Leipold is yet to be completed.
MCT said we can expect the next round of results in the coming days or weeks.
These holes will test the areas under the open pit and the newly identified mineralisation to the south.
Commenting on the latest results, Managing Director Jason Livingstone said:
‘It is apparent that the Leipold mineralisation extends a considerable distance, some 250 metres south, past our previous drilling, and I look forward to receiving the balance of the assays and the results from our current drilling which is underway.’
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For The Daily Reckoning Australia