AusBN - Western Australian exploration company Metalicity (ASX:MCT) has signed an agreement with China Nonferrous Metals Company (CNFC) to further develop its Admiral Bay zinc project.
The Admiral Bay project, located in the Canning Basin, south of Broome, is the largest undeveloped zinc deposit in Australia, and the 4th largest in the world with a resource estimate of 170Mt at 7.5% zinc.
The deal is a non-binding memorandum covering feasibility, development, financing and construction of the project.
In a company statement Metalicity said: “These discussions are at an advanced stage and the company will inform the market should these discussions progress to a binding investment proposal in the near term.”
The firm also revealed it was pursuing a pre-feasibility study for Admiral Bay involving the refinement of preferred development pathways along with the compilation of a new mineral resource estimate for the high-grade zone.
More than AUS$50 million in drilling and feasibility studies has already been invested into the project thus far.
CNFC president Liu Tongsheng said: “CNFC has demonstrated its feasibility, development, financing and construction expertise globally on other zinc-lead projects of this order of magnitude and we look forward to working with Metalicity to advance Admiral Bay.”