- Metalicity (MCT) ended the September quarter with sturdy cash reserves in the bank and strong drilling results under its belt
- The company spent the quarter drilling its Kookynie Gold Project in WA, with a particular focus on the Leipold, McTavish, and Champion prospects in the area
- The company hit some major high-grade results from Leipold and worked to update the mineral resource estimates of McTavish and Champion
- While Metalicity burnt through just under $1 million over the quarter, a $5 million placement in early September helped stabilise its balance sheet
- Shares in Metalicity are down 5 per cent this afternoon and currently worth just under two cents each
Metalicity (MCT) ended the September quarter with sturdy cash reserves in the bank and strong drilling results under its belt.
The junior explorer released its quarterly financial report for the three months to the end of September today and in it highlighted some of the biggest achievements from the quarter.
The company’s share price hit a two-year high at the start of the quarter following high-grade drilling results from its flagship Kookynie Gold Project in WA.
MCT placed a particular focus on drilling at the Leipold, McTavish, and Champion prospects in the area, with encouraging assays returned from each.
Over the quarter, the best results from Leipold included a four-metre hit grading an average of 26.91 grams per tonne (g/t) of gold from 65 metres. This strike included a one-metre zone at a whopping 100.77 g/t of gold from 67 metres.
At the McTavish trend, Metalicity drilled 14 holes for 1020 metres over the quarter. The company said the drilling is designed to expand the known mineralisation strike for the prospect from roughly 200 metres to over 400 metres as it works to complete an updated mineral resource estimate (MRE) for McTavish.
Historically, best results from the prospect have included hits such as a two-metre intersection at 14.11 g/t of gold from 39 metres.
As for the Champion trend, Metalicity drilled 10 holes for 690 metres at the prospect over the quarter. Similar to McTavish, MCT is working to convert a JORC 2004 MRE to a JORC 2012 MRE at the prospect.
Bolstered balance sheet
Taking a look at Metalicity’s financial position, the company burnt through just under $1 million over the quarter — the bulk of which came from exploration work costs.
Still, a $5 million placement in early September helped stabilise the company’s balance sheet, and Metalicity had $5.1 million in the bank at the end of the quarter.
This means at current spending levels, the company has a cash runway that will last over five financial quarters.
Nevertheless, Metalicity was unable to escape a sell-off across the wider market today which was particularly tough on the materials sector.
Shares in MCT are down a flat 5 per cent at 2:11 pm AEDT, currently worth 1.9 cents each.