Metal Bank Limited (ASX: MBK) ('Metal Bank', 'MBK' or the 'Company') is pleased to advise that it has completed the acquisition of Kingston Resources Limited's (Kingston) wholly owned subsidiary, Westernx Pty Ltd and its 75% interest in the advanced Livingstone gold project in Western Australia, with the issue to Kingston of 125,000,000 ordinary shares and 62,500,000 options exercisable at $0.016 and expiring 7 December 2023, and payment of initial cash consideration to Kingston of $2.5M million.
MBK will pay a further $1.5 million to Kingston no later than 12 calendar months from Completion, or earlier upon MBK identifying independently verified JORC Inferred Mineral Resources of 100,000 ounces Au or more calculated on an Au Equivalent basis and with a minimum cut-off grade of no less than 0.5 g/t Au.
Deferred consideration of a further $5 million may become payable in the event that MBK achieves certain milestones regarding identification of additional JORC Mineral Resources for the project.
A summary of the terms and conditions of the Share Purchase Agreement is set out in MBK's ASX Release of 26 October 2021 'Livingstone Acquisition and Entitlement Offer to raise $6.34M'.
Commenting on the Livingstone Acquisition, Metal Bank's Chair, Ines Scotland said: 'We are very excited to have finalised the acquisition of the Livingstone gold project, which provides MBK with an outstanding growth opportunity through its compelling series of advanced prospects and exploration targets across the area of the project. Work has already commenced: we have appointed a project manager, we are assessing drilling tenders and we have developed a work program for the next year aimed at substantially increasing JORC resources and testing the multiple additional targets across the project. We are looking forward to exploration success in 2022.'
The Livingstone Project
The Livingstone Project is an advanced gold exploration project located 140km northwest of Meekatharra in Western Australia. It includes 395 km2 of granted exploration licences, with the licences covering the entire western arm of the Proterozoic Bryah-Padbury Basin (host to the Fortnum, Horseshoe and Peak Hill gold deposits and >2Moz Au endowment)
It should be noted that the JORC 2004 Inferred Resource, originally report by Talisman Mining Ltd and by Kingston3, has not been reported in accordance with the JORC Code 2012 and a Competent Person has not done sufficient work to classify the estimates of Mineral Resources in accordance with the JORC Code 2012. It is possible that following evaluation and/or further exploration work the currently reported estimates may materially change and hence will need to be reported afresh under and in accordance with the JORC Code 2012.
Nothing has come to the attention of the Company that causes it to question the accuracy or reliability of the estimates but the Company has not independently validated the estimates and therefore the Company is not be regarded as reporting, adopting or endorsing those estimates. Although the Exploration Target for Kingsley is based on existing drilling data previously reported by Kingston5, it should be noted that the potential quantity and grade of the Exploration Target for the Kingsley deposit is conceptual in nature. There is insufficient information relating to the Reasonable Prospects of Eventual Economic Extraction of the Kingsley project to estimate a Mineral Resource over the Exploration Target area, and it is uncertain if further studies will result in the estimation of a Mineral Resource over this area.
Kingsley gold deposit and Exploration Target
The Kingsley gold deposit was discovered by Kingston in 2018 after completing aircore drilling over part of the deposit. A further 50-hole (4,390m) RC drilling program in 2020 defined zones of highgrade Au within broader zones of shallow mineralisation, showing continuity over 1km strike length, and correlation with the geological model7.
Gold mineralisation is related to a set of late quartz-carbonate-sericite-pyrite veinlets that have developed in reactivated older steeply dipping deformed quartz veins that strike 110-degree, within a mafic to ultramafic schist or 'talcose' schist.
The drilling completed to date8, continuity of mineralisation over 1km of strike, and positive metallurgical testwork9 provide the basis for an Exploration Target of 660 to 770 Kt grading 1.3 to 1.5g/t Au for a total of 30,000-34,000oz Au using a nominal 0.5 g/t Au cut-off.
It should be noted that there is insufficient information relating to the Reasonable Prospects of Eventual Economic Extraction (RPEEE) of the Kingsley project to estimate a Mineral Resource over the Exploration Target area, and it is uncertain if further study will result in the estimation of a Mineral Resource over this area. MBK's immediate priority work program at Kingsley will be to complete required work to convert the Exploration Target to a Resource and report a Maiden Mineral Resource estimate to JORC 2012 standard.
Livingstone North Prospect
The Livingstone North prospect located 600m north-east of the Kingsley deposit, is a 2km2 target area with a significant extensive Au-in-soil anomaly. The prospect includes historical mining activities, limited drilling in the 1980's with high-grade drilling intercepts which have never been followed up. There has been no drill testing at the Livingstone North prospect below 25m depth. The Livingstone North prospect presents MBK with a substantial walk-up drill target. MBK has developed a comprehensive drilling program planned aimed at defining the full extent of mineralisation both laterally and at depth.
Additional Livingstone prospects and targets
In addition to the Kingsley and Livingstone North prospects, the Livingstone Project includes multiple gold targets extending along 40km of strike. Building on Kingston's recent project-wide review of Livingstone10, MBK's first year work program for the Livingstone Project will include assessment, prioritisation and drill testing of other compelling gold targets, including Hilltop and VHF (along strike from the Homestead JORC Resource), and Stanley (north of Livingstone). In addition, Resource extension drilling at the Homestead deposit will test for continuity of mineralisation to the east
Contact:
Sue-Ann Higgins
Email: sue-ann@metalbank.com.au
About Metal Bank
Metal Bank Limited is an ASX-listed minerals exploration company (ASX: MBK). Metal Bank's core focus is creating value through a combination of exploration success and quality project acquisition. The Company's 100% owned South East Qld Gold Projects - 8 Mile, Wild Irishman and Eidsvold gold projects - are situated in the northern New England Fold Belt of central Queensland, which also hosts the Cracow (3 Moz Au), Mt Rawdon (2 Moz Au), Mt Morgan (8 Moz Au, 0.4Mt Cu) and Gympie (5 Moz Au) gold deposits. Each of these projects are associated with historical goldfields and represent intrusion related gold systems (IRGS) with multi-million-ounce upside. The Company is committed to a strategy of diversification and growth through identification of new exploration opportunities which complement its existing portfolio and pursuit of other opportunities to diversify the Company's assets through acquisition of advanced projects or cashflow generating assets to assist with funding of the exploration portfolio. In pursuit of this strategy, the Company has purchased a 75% interest in the advanced Livingstone gold project in Western Australia and has secured the right to earn up to an 80% interest in the Millennium copper-cobalt project near Mt Isa.
The Company is also actively reviewing other new opportunities within Australia and is continuing to work with government and stakeholders in the MENA region with a view to securing an advanced copper exploration project.
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