Riva Resources (ASX:RIR) is set to increase news flow as drilling prepares to establish confidence around the potential existence of a large cobalt gold system within the wholly-owned Tabac Cobalt–Gold Project located in Western Australia.
Historical drilling results from the 1980's highlight the existence of cobalt, and included: 80 metres at 0.77% cobalt from 170 metres; and 30 metres at 0.3% cobalt from 358 metres.
Drilling is expected to commence in the week beginning April 10, 2017.
Importance of cobalt
Cobalt is a specialty metal used in rechargeable batteries, specifically in the cathode – its properties allow it to store power for longer.
Due to its potential widespread use in smartphones and the lithium-ion batteries used in Tesla Inc (NASDAQ:TSLA) vehicles, prices have been rapidly rising.
The cobalt price has more than doubled since the end of August 2016 to trade over $US50,000 per tonne recently.
With demand for the metal surging due to major car makers moving into electric and hybrid vehicles, analysts are questioning where the supply will come from.
Analysis
Should the historical results be repeated or confirmed during the drilling program, the Tabac project has the potential to be globally significant.
Drill results will be highly anticipated by the market, especially given the growing significance of cobalt.