Cazaly Resources Limited (ASX:CAZ) has intersected high grade cobalt from first pass reconnaissance mapping and rock chip sampling at its Bungonia cobalt project in New South Wales.
The company’s shares closed circa 26% higher for the day, at $0.053.
The Bungonia cobalt project covers circa 242 square kilometres and is located 130 kilometres northeast of Canberra.
Cazaly collected 34 rock chip samples in total from six targets within the project area on properties where access has been negotiated with the landowners or from road verges.
It is worth noting that eight out of these 34 samples gave results above 1% cobalt with an overall average of 0.62% cobalt.
The best rock chip sample graded 1.40% cobalt.
The mapping and rock chip sampling results have confirmed the presence of shallow high-grade cobalt mineralisation associated with manganese enriched quartz sandstone units.
Significantly, the cobalt mineralisation occurs as flat lying residual on hills extending for several hundred metres.
Initial results point towards a high potential for extensions to the known mineralised bodies and the discovery of new cobalt sources.