Cobalt Blue Holding Ltd (ASX:COB) has identified multiple exploration targets at its Thackaringa Cobalt Project in the far west of New South Wales.
Targets sourced during an aerial geophysical survey have potential to extend known cobalt mineralisation.
The heliborne electromagnetic survey covered the entire 63 square kilometre project area and also identified a new target south of the Pyrite Hill deposit.
Cobalt Blue’s shares increased 7.55% yesterday to close at $0.285 on volume of 1.612 million.
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The three known deposits at Thackaringa, 23 kilometres southwest of Broken Hill have a combined strike length of 4.5 kilometres and the survey results support substantial future additions to the resource.
Joe Kaderavek, chief executive officer, commented: "Thackaringa is potentially much larger than previously thought.
"The results support considerable down dip potential and the new target near Pyrite Hill is also a major surprise.
"Cobalt Blue is highly encouraged by these results, which support a world-class, long-life operation."
Drilling program expected to support resource upgrade
Cobalt Blue is completing a 13,500-metre drilling program at the project, which is expected to support a resource upgrade.
This campaign is targeting confirmation of geological continuity.
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A detailed geotechnical drilling program is also nearing completion with results expected to allow for detailed pit optimisation and mine planning.
Pre-feasibility study due by mid-2018
The drilling forms part of a pre-feasibility study, which also includes geotechnical and environmental work, and is due for completion by mid-2018.
The cobalt pyrite deposits comprise 54.9 million tonnes at 910 ppm cobalt, 9.56% sulphur and 10.9% iron.