Cadence Minerals PLC (LON:KDNC) got a boost today from news that Macarthur Minerals Limited - in which the AIM-listed firm has a 20.3% stake - has discovered the potential for cobalt, nickel and chromium in Macarthur Australia Ltd’s Iron Ore Projects in Western Australia.
In a statement, Macarthur Minerals' President, CEO and Director, David Taplin said: “Macarthur Minerals is excited about recent analysis of historical drilling and exploration data that indicates the potential to discover cobalt, nickel, and chromium on its Iron Ore Projects.”
He added: “Cobalt is a critical metal for the manufacture of lithium-ion batteries and is complementary to our focus on lithium.”
Taplin pointed out: “Cobalt makes up some 35% of the lithium-ion battery mix. Analysts already report a significant supply deficit for cobalt before an anticipated 500% increase in demand.”
Cobalt prices have surged for 24 straight weeks, having surged by 150% as technology giants have been battling for the limited supply.
Review of historical drilling data
Macarthur Iron ore, in which Macarthur holds a 90% stake, holds 15 granted mining leases in the Eastern Goldfields region in Western Australia through its subsidiary Macarthur Iron Ore Pty Ltd (MIO).
MIO recently started a review of the historical drilling data for that area to conduct selected assays for the potential of other minerals.
The review discovered the presence of upper horizons of a channel flow in contact with a buried nickel sulphide flow. Also, wide intersections at the base of the drill holes identified grades in excess of 0.2% cobalt, 0.7% nickel and 1% chromium.
Macarthur said MIO recently sent 2,600 samples to its laboratory to be assayed for other minerals including cobalt.
Excited by the news, Cadence shares on AIM were up 2.5%, or 0.01p at 0.42p in late afternoon trading.