Metalicity Limited (previously PLD Corporation) is now commencing the Scoping Study following completion of the acquisition of the Admiral Bay Zinc deposit, located in the Canning Basin of Western Australia. This is one of the world’s largest undeveloped zinc projects, and there is significant scope for a resource upgrade and expansion given that mineralisation has been intersected along a mineralised trend with a strike length of 18km. The acquisition and proposed initial 6 month work programme through to the completion of a Scoping Study (“the Study”) are fully funded, with agreements in place to the tune of US$5.0 million with Resource Capital Funds (RCF). The RCF funding includes a completed $0.68m share subscription and a US$5m royalty purchase. The acquisition of the Rocky Gully Nickel-Copper Project has also been finalised, which was previously held under option agreements. Exploration work to date on this project, located near Albany in southern WA has returned encouraging results for sulphide nickel-copper and VMS style mineralisation. We rate MCT as a SPECULATIVE BUY, with price movers including positive results from the Scoping Study at Admiral Bay and exploration at Rocky Gully.
Company
- MetalicityASX: MCT