The results included 10m at 7.44 grams per tonne gold from 108m with 2m at 21.03gpt, and 9m at 3.96gpt gold from 35m, including 2m at 9.25gpt.

 

The deepest hole to date at Leipold also delivered 2m at 35.23gpt from 124m, confirming that the mineralisation continues down-dip.

 

The drilling involved some holes stepping out 250m to the south, while the rigs are now north of Leipold, with the junior hopeful of extending the strike to 1km.

 

Further assays are expected soon. 

 

Managing director Jason Livingstone said it was apparent that the Leipold mineralisation "extends a considerable distance" from the known deposit, where there is a legacy resource of 33,000 ounces.

 

He said the consistent widths and relatively consistent grades observed at Leipiold was noteworthy, and that Metalicity's structural interpretation has been validated by the drilling.

 

It has undertaken a detailed drone magnetic survey to allow for the interpretation of the 8km-long strike along from the half-dozen known prospects within the project. 

 

Metalicity farmed into Nex Metals Exploration's Kookynie and Yundamindra projects last May, agreeing to spend A$5 million.

 

The early focus has been on the McTavish and Leipold prospects along the Diamantina-Cosmopolitan-Cumberland Trend. 

 

The drone magnetic survey and ongoing drilling will feed into the phase three drilling, which will likely expand to evaluate the Champion and Altona prospects, and a return to the Cosmopolitan mine area, from which 360,000oz was recovered before 1922. It has been essentially overlooked by modern exploration. 

 

Metalicity raised about $1.3 million in May by issuing new shares priced at 0.2c each.

 

Shares in Metalicity were down 3.5% to 2.8c in morning trade, capitalising the company at $39 million.