Metalicity Ltd. exercised its option to acquire the Napier Range and Emanuel Range zinc projects in Western Australia.
The company said Oct. 12 that it will pay about A$2 million by Nov. 22, 2018, to Chinese state-owned Northwest Nonferrous International Investment Co. Ltd. subsidiary Meridian Minerals Pty. Ltd.
The Napier Range project contains the Wagon Pass deposit, which hosts JORC 2012-compliant inferred mineral resources of 750,000 tonnes at 13.6% zinc equivalent.
The project also contains an adjoining exploration target range of between 100,000 and 200,000 tonnes at 10% to 15% zinc equivalent and an additional exploration target range of 1 million to 4 million tonnes at 10% to 15% zinc equivalent across separate prospects within the mining leases that are priority targets for drilling.
The Emanuel Range project comprises a 30-kilometer strike of largely untested targets.
The projects will complement the development of the company's Admiral Bay zinc project, located in the adjoining Canning Basin of the Kimberley region, Metalicity said.
A joint venture between Glencore Plc and Teck Resources Ltd., Lennard Shelf Pty. Ltd., has an option to earn a 51% participating interest in the Wagon Pass tenements if a new JORC-compliant inferred resource is discovered.
Lennard can earn the interest either by sole funding a feasibility study or spending A$20 million on resources delineation.