Kyarra lies within the Proterozoic Yerrida Basin on the northern margin of the Yilgarn Craton.
The company had compiled considerable historic work across the key “Kyarra West” target area, as well as indications of the potential source of base metal mineralisation in the district.
Metalicity identified six drill intersections grading more than 300 ppm cobalt, grading up to 6 metres at 492ppm, including 2 metres at 612 ppm cobalt.
The company also received nine surface sample results between 500 ppm cobalt to 6,400 ppm cobalt.
The widespread cobalt anomalism identified from the initial work at Kyarra over a 25-kilometre strike represents a compelling target area for field work and drill testing.
The key geological criteria identified at Kyarra support an exploration model with numerous similarities to the Central African Copper Belt, where new base metal discoveries continue to be made.
This review has enabled an initial targeting exercise to be undertaken, and refinements to be made to a proposed exploration model.
Metalicity is shortly commencing field work to verify the results and prioritise targets for drilling in the June quarter.
The company had a cash balance of circa $3.1 million as at 31 December 2016.