Cazaly Resources’ Bungonia project in New South Wales is bearing fruit with the company reporting high-grade cobalt grades and extensions to known mineralisation at the project.
Second round of results from reconnaissance rock chip sampling included a peak value of 1.68% cobalt and average grade of 0.5% cobalt, highlighting the significant high-grade cobalt mineralisation within the project, Cazaly said.
Sampling and mapping was carried out on five of the prospects sampled in November as well as seven new areas not previously tested by the company.
At the Avanti prospect, mapping extended mineralisation to the west for over 700 meters and remains open.
It also identified significant extensions to known mineralisation and provided a better understanding of the geology.
Importantly, the work also saw the discovery at new targets of what appears to be primary bedrock manganese/cobalt mineralisation previously not identified. The mineralisation was discovered in two areas 5 kilometres apart grading up to 0.15% cobalt.
“The lack of modern systematic exploration to date leaves substantial upside for further discoveries of cobalt deposits in the area,” the company said.
Cazaly said exploration in 2018 would focus on the potential identified and quickly advance priority prospects to being drill ready. The company is currently negotiating access to the Avanti prospect for drilling.
The project covers 242 square kilometres and lies 130km north east of Canberra and 25km south east of Goulburn in New South Wales.
Meantime, initial analysis by Cazaly on the exploration database for the Tsumkwe project in Namibia indicates no significant cobalt mineralisation in historic drilling.
Cazaly announced last month that it was seeking to acquire an 85% equity interest in Tsumkwe subject to due diligence.
Previous drilling over a strong magnetic anomaly by Mount Burgess Mining NL identified highly anomalous cobalt results.
However, the results were only reported by portable XRF analysis and needed to be treated with caution, Cazaly said.
While the database continues to be analysed, Cazaly said it was unlikely to proceed with the acquisition.
Shares in Cazaly were trading 0.2c higher at 5.4c at 1pm AEDT.