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Mining

Cobalt Blue completes latest milestone on path to lifting Thackaringa resource

More drilling results will flow through in coming weeks.

Cobalt Blue Holdings (ASX:COB) has completed a major milestone in completing the definition drilling program at its Thackaringa project, located in New South Wales.

The drilling is expected to triple the current resource of: 33.1 million tonnes at 833ppm cobalt (at a 500ppm Co cut-off).

Latest highlights include:

Railway:

– 46 metres at 1,136ppm cobalt, 11.4% sulphur and 10.1% iron from 39 metres;

– 36 metres at 1,075ppm cobalt, 10.6% sulphur and 10.4% iron from 27 metres; and

– 20 metres at 1,053 ppm cobalt, 12.8% sulphur and 12.6% iron from 52 metres.

Pyrite Hill:

– 89 metres at 982ppm cobalt, 9.4% sulphur and 8.7% iron from 34 metres; and

– 58 metres at 1,383ppm cobalt, 13.2% sulphur and 12.8% iron from 54 metres.

Big Hill:

- 54 metres at 888ppm cobalt, 5.4% sulphur and 5.0% iron from 19 metres.

Robert Biancardi, chairman, commented:

“COB is delighted with the timely and efficient conclusion to the drilling program.

"Preliminary interpretation of the results supports the company’s belief that the Thackaringa JV is defining a world class cobalt-pyrite deposit.

"We remain confident that data acquired during the 2016 and 2017 drilling programs will allow a significant enhancement in the estimated Mineral Resource."

Analysis

More assay news flow will continue in coming weeks.

Importantly - results to date support the potential to enhance the average grade within the overall mineralised envelope.

The reverse circulation program was designed to improve drilling density in support of a resource update, with diamond drilling providing ROM material for metallurgical testwork.

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