METALS Australia's Mandini zinc project has shown promise for a...

METALS Australia's Mandini zinc project has shown promise for a potentially larger resource at both its Warabi and Mulgara deposits, with work at the Western Australian deposits indicating that mineralisation continues at depth.



The company said recently completed down hole electromagnetics (DHEM) and grade modelling at Warabi and Mulgara had shown the resources at the deposits had been extended by recent drilling. The work also confirmed the deposits had "strong potential" of continuing at depth.

Metals Australia said recent drilling at Warabi Zone A has increased the physical size of the deposit both to the north and at depth, and that the current JORC compliant resource has not yet been recalculated.

Meanwhile at Mulgara zone B recent drilling combined with the survey and grade modelling indicates the ore system has a northerly plunge and remains untested along strike and at depth.

The current resource estimates for both Warabi and Mulgara – using a 1% zinc cut-off grade – currently stands at 119,350 tonnes at 8.42% zinc and 218,240t at 7.77% zinc respectively.

Metals Australia is planning to kick off a diamond drilling campaign for both areas either late this year or early next year.

The company's interpretation of the DHEM survey and modelling for the Kultarr and Kowari zones is currently being finalised.

The global JORC resource for Mandini – using a 1% zinc cut-off grade – has a measured and indicated resource of 729,671t at 7.71% zinc.

Metals Australia formally changed its name from Australian United Gold in September this year.

Shares in Metal Australia gained 0.2c to close at 3.7c today.