Metalicity Ltd (ASX:MCT) – a company mainly focused on development of the Kookynie and Yundamindra gold projects in Western Australia – has announced its proposal to sell off its Admiral Bay zinc project, one of the largest zinc resources in the world, which is located in the same state.
Metalicity holds a majority – that is to say, 80.3% – interest in the project through subsidiary Kimberley Mining, and on Friday it told the market that stockbroker Argonaut PCF Ltd had been appointed to seek all indicative offers for the play.
Located in the Kimberley region’s Canning Basin, Admiral Bay holds an existing mineral resource of 170 million tonnes at 7.5% zinc equivalent, with mineralisation defined as being of the Mississippi Valley Type (MVT), containing zinc, lead, silver and barite.
Comprised of two granted mining licences and one granted exploration licence over 25 kilometres of mineralisation, the project was explored between 1986 and 1992 by CRA Exploration Pty Ltd, and between 2004 and 2009 by Kagara Ltd, before it was acquired by Metalicity in late 2015.
The market responded warmly to the news, and at 11:45 AEDT, Metalicity’s shares were trading at 0.3 cents, a rise of 50% since the market opened.