Australian Mines Limited (ASX:AUZ) has identified three zones of elevated levels of cobalt from surface geochemical sampling over Target Area A of its Thackaringa Project in New South Wales.
The cobalt content of these three anomalous zones is similar to that observed at surface over Cobalt Blue’s (ASX:COB) Pyrite Hill and Big Hill cobalt deposits.
Importantly, the elevated cobalt results within one of the anomalous areas appear to be coincident with the geophysical response observed in an electromagnetic survey at the end of 2017 and confirmed by a follow-up survey completed in March 2018.
With the anomalous zones being, in part, buried by a shallow alluvial cover, surface expressions of cobalt mineralisation >15 ppm is considered significant.
Upcoming maiden drilling program
Australian Mines is continuing its soil and surface sampling program at Thackaringa, with the program designed to evaluate the entire tenement package.
As such, the company anticipates further significant results from its geochemical sampling program throughout the coming quarter.
At the completion of the geochemical program, the new areas of elevated cobalt will be the subject of A maiden drilling program at Thackaringa, which will also include the testing of a recently-identified bedrock conductor.
Sconi Cobalt-Nickel-Scandium Project in Queensland
Australian Mines is also continuing to advance its flagship Sconi Cobalt-Nickel-Scandium Project in northern Queensland toward major development milestones in 2018.
Sconi is the only cobalt project in Australia with a 100% off-take agreement already secured for production.
The binding agreement with Korean-headquartered industrial conglomerate SK Innovation is for the sale of up to 12,000 tonnes of cobalt sulphate per year and up to 60,000 tonnes of nickel sulphate per year.