MetalBank entered into an agreement to sell a 50% interest in the Company’s Killi Killi South Rare Earths-Gold Project (E80/4212) to Orion Metals (ASX: ORM). The project is located just south of ORM’s Killi Killi Hills project area, in the Kimberley region of Western Australia.
ORM’s regional studies have shown that the project area hosts a concealed granite intrusion surrounded by an extensive alteration halo, (see Figure 1, attached) that could be the hydrothermal engine driving REE/U/gold mineralisation in the Killi Killi district.
This location is considered to be highly prospective for significant REE/gold occurrences due to:
- unconformity is a conduit for hydrothermal fluids
- these fluids were most likely expelled from a crystallizing igneous complex
- the regional faults may have provided a pathway for fluids
The area is also a proven gold region, with Tanami Gold’s (ASX: TAM) 350,000 tonnes per annum capacity Coyote Gold Mine located immediately south of the Killi Killi project area.
The Killi Killi prospects and the granite lie in the major north- west trending structural zone, known as the Trans-Tanami Structural Corridor and appear to be at the intersection of a north-north-east fracture system.
