Base metals explorer Metalicity Limited has now secured Exploration License Applications in the copper prospective province of the Pilbara Region, Western Australia.
In an announcement to Australian Securities Exchange, Metalicity today reported that the company has generated 2,166 km2 of Exploration License Applications (ELA’s) in the Paterson Province of the Pilbara Region, adjoining Rio Tinto’s Exploration Licenses. The region is within an interpreted copper corridor, which is host to numerous underexplored copper occurrences and geophysical anomalies.
In line with the company’s strategy to focus on Nickel and Copper exploration, the company considers Fraser Range and Paterson Province as its preferred geological terrains. With this purpose, Metalicity completed a regional copper prospectivity study covering the Pilbara Region, including the ranking of 30 stratigraphic districts within the Pilbara.
Further, the company has commenced data compilation and project evaluation to ascertain areas of interest within the Desert Queen and Mandora Beach ELA’s for possible future exploration. The Desert Queen project covers a total area of 679km2 in the Paterson, 20km along strike from exploration conducted by Rio Tinto and within an interpreted copper corridor. Whereas, the Mandora Beach project covers a total area of 1,487km2 in the Paterson, adjoining tenements held by Rio Tinto and Fotescue and is also located within an interpreted copper corridor. Both these projects have not been the subject of modern systematic exploration techniques and are considered prospective for major copper discoveries.
Commenting on the new projects, Metalicity Managing Director Matt Gauci stated that the Paterson ranks high in the company’s priority list of geological terrains for the discovery of copper mineralisation in the Pilbara. He added Metalicity retains significant experience exploring the Paterson over the last 20 years and is currently compiling all available geological, geochemical, geophysical datasets to assist guiding future exploration activities.
Moreover, Metalicity reported that the company is in process of selling its zinc and lithium interests in Western Australia, with completion of these transactions and receipt of staged payments of up to approximately $35 million in cash/shares, potentially commencing in the March Quarter 2019.
In a separate release to ASX, Metalicity also announced that the company has signed a Deed of Release with Fortescue Metals Group (ASX: FMG) regarding a milestone payment in respect of the acquisition of certain tenements considered prospective for lithium in the Pilbara. As a result, Metalicity issued 10 million of its shares to FMG at an issue price of 1.17 cents per share. And with this Fortescue Metals Group has become the second largest shareholder in Metalicity, holding approximately 4% of MCT’s issued capital and 5 million unlisted Options at an exercise price of 5 cents.
On the good news of securing copper projects in Pilbara, Metalicity stock jumped as high as 12.5% to last trade at $0.018 with market capitalization of $9.48 million as on 13 November 2018. But over the past one year the stock of Metalicity Limited (ASX: MCT) has witnessed a negative performance change of 56.76%.
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