Delecta Ltd (ASX:DLC) has revealed the presence of high-grade cobalt and copper mineralisation from sampling at the Highline Cobalt-Copper Project in the State of Nevada, US.
Highlight results include:
• 0.75% cobalt, 15.6% copper, 10.9 g/t silver and 2.49 g/t gold;
• 1.46% cobalt and 0.21% copper;
• 0.30% cobalt, 1.81% copper and 2.22 g/t gold; and
• 31.2% copper, 0.09% cobalt and 35.6 g/t silver.
READ: Delecta shares surge following acquisition of cobalt-copper project in Nevada, USA
The Highline Project is in the mineral rich Goodsprings district surrounded by four historical cobalt producing mines.
The project area is adjacent to New World Cobalt’s (ASX:NWC) and Tyranna Resources’ (ASXTYX) claims.
Delecta had entered into a binding option agreement in September 2018 to fully acquire the Highline Project.
The company is currently utilising the 90-day option period to complete a geological review.
Historical small scale mining occurred between 1917-1921 on the Highline claim group, with production results of up to 12.45% cobalt and an average production grade of 35% copper
The Highline acquisition is part of Delecta’s diversification strategy aimed at capitalising on the demand for battery minerals such as cobalt, lithium and vanadium.
It is worth noting that the price of cobalt has increased from US$23,000/tonne in March 2016 to US$58,000/tonne in October 2018.
Sampling results
Delecta managing director Malcolm Day said: “I am very pleased with the results from our sampling.
“It confirms the results from the vendor’s sampling and demonstrates the high grade nature of the mineralisation.
“Given the Highline mine’s previous mining and exploration was circa 100 years ago, the company believes that the Highline Cobalt-Copper project represents a relatively low risk opportunity in an area of known mineralisation”.