Metalicity (ASX: MCT) - dual exposure to high-flying zinc and lithium

Gavin Wendt

Metalicity (ASX: MCT) is an emerging resource play that's seen its share price almost treble over the past 12 months since our initial coverage. The simple reason is its dual exposure to what are two of the resource sector's most important commodities right now - zinc and lithium. From a zinc perspective, it owns the very large and advanced Admiral Bay zinc project in Western Australia - one of the world's largest undeveloped zinc deposits. It's ownership of Admiral Bay and progress in terms of advancing it to Pre-Feasibility status has coincided with an almost 90% increase in the price of zinc during 2016. Resource upside is strong, given the current estimate encompasses just 2.1km of the currently-defined 18km mineralised corridor. From a lithium perspective, the company holds extensive acreage within the Pilbara region, which is host to some of the world's largest hard-rock lithium projects being pursued by high-flyers including Pilbara Minerals (ASX: PLS). In fact Metalicity's project lies just 5km SW of Pilbara Minerals' Pilgangoora project, where strong pre-production activity is underway.


Comments

Please sign in to comment on this wire.