African Battery Metals PLC (LON:ABM) shares rose on Wednesday on news the firm is to push ahead with its work in Cameroon following a review, with the tenements held seen as highly prospective for elevated grades of nickel and cobalt.
In a statement, the AIM-listed battery metal exploration and development company noted that a desktop study undertaken by Sahara Natural Resources, completed for the company in June 2018, which ranked the interests in order of technical priority has been reviewed.
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The group said follow-up up site visits were conducted by Sahara in October 2018 with sampling undertaken within one metre of surface however the lateritic environment requires deeper sampling methods as demonstrated by the work undertaken at the nearby Geovic project which indicated that the mineralised horizons were below six metres.
The company has four licenses in Cameroon at Ngoila Nord, Ngoila Est, Ekok and N'dja, as well as also two licence applications at Ntam Est and N'Gaoundere, with the original rationale to acquire the licences in August 2018 being their proximity and geological similarity to the Geovic Mining Corp Nkamouna deposit which remains the largest undeveloped cobalt resource globally outside the Democratic Republic of Congo.
The company added that the review work undertaken as part of the company's Strategic and Operational planning has confirmed that the Cameroon Project should be continued and a forward work programme is now being devised which will be announced shortly.
In early afternoon trading, ABM shares were 6.3% higher at 0.42p.
Work to commence as soon as possible
Paul Johnson, African Battery Metals’ executive director commented: "ABM is now continuing work in respect of both the DRC and Cameroon projects, utilising the information gathered to date to identify an optimal pathway to value generation for investors.
“The proximity and geological similarity of our interests to the Nkamouna deposit is highly attractive, particularly given the scale of Nkamouna. Furthermore, the Company's team have identified what appears to be cost-effective exploration methodology to test mineralisation on our license areas which should, without too much further delay, demonstrate the potential prospectivity of the license ground.”
He concluded: “I look forward to providing further information in respect of our planned exploration in-country, which ideally we would like to commence as soon as possible to enable work to be completed prior to the heavy rains expected after June."
ABM’s Cameroon interests are held through Cobalt Blue Holdings Inc., a BVI company which in turn holds 100% of Cameroon registered Cobalt Blue Limited, which in turn holds 100% of Cameroon registered companies, LC Minerals Limited and LC Exploration Limited. The latter two companies hold 100% of the company's Cameroon project interests.
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