Metalicity’s emergence as a zinc company has been boosted by the acquisition of two projects in the Kimberley region of Western Australia.
The explorer has exercised an option to acquire the Napier Range and Emanuel Range projects, which the company describes as high-grade, near-term development opportunities.
Both properties complement Metalicity’s flagship Admiral Bay zinc project, also in the Kimberley region. The company has released a pre-feasibility study for Admiral Bay, which confirmed economics for a direct shipping ore (DSO) operation and a net present value of $1.2 billion for the project.
Metalicity believes the acquisitions contain Mississippi Valley type zinc deposits, which typically require simple, low-cost, conventional processing to deliver high metal recoveries.
Managing director Matthew Gauci said the acquisitions provided immediate upside for Metalicity as it continued to improve a staple of zinc projects in WA.
“Admiral Bay is the fourth largest undeveloped zinc deposit in the world and the addition of high-grade zinc deposits within the region provides additional options and flexibility to generate cashflow,” Gauci said.
“The timing of these acquisitions is also important. Metalicity holds a unique position, developing a globally significant deposit of zinc, complemented with smaller nearby projects – with the International Lead and Zinc Study Group (ILZSG) as recently as this week further confirming a global zinc shortage unfolding.”
Zinc prices are at 10-year highs because of the tightening marketplace. The base metal advanced by 1.4 per cent overnight to finish the session at $US3341 a tonne.
The Napier Range project has an inferred mineral resource estimate of 750,000 tonnes at 13.6 per cent zinc equivalent (ZnEq) and an exploration target range of 100,000-200,000 tonnes at 10-15 per cent ZnEq.
Zinc hits have been at a shallow depth, according to Metalicity, further highlighting the strong exploration and development upside. Metalicity has already completed field work, exploration targeting and base case financial modelling for the project.
Emanuel Range is co-located in the Lennard Shelf geological belt and comprises a 30km strike of largely untested targets, proximate to the Pillara zinc mine.
Metalicity intends to continue development of the zinc projects and is planning further exploration campaigns to better understand the mineral deposits.