THE DRILL SERGEANT: Broken Hill Prospecting (ASX: BPL) has uncovered higher cobalt grades in greater widths beneath existing resources at the company’s Thackaringa cobalt project, south-west of Broken Hill in New South Wales.
Broken Hill lProspectings said the latest results, encountered during a major drilling program, had raised its expectations for a Resource Upgrade due in May 2017.
The highlights from the recent drilling included:
41 metres at 1319ppm cobalt 12.2 per cent sulphur and 11.2 per cent iron from 37m;
53m at 1116ppm cobalt, 12 per cent sulphur & 10.9 per cent iron from 30m;
17THR017 (Pyrite Hill)
58m at 1383ppm cobalt, 13.2 per cent sulphur & 12.8 per cent iron from 54m, including 29m at 2042ppm cobalt, 18.3 per cent sulphur & 15.8 per cent iron from 56m; and
17THR013 (Big Hill)
54m at 888ppm cobalt, 5.4 per cent sulphur & 5 per cent iron from 19m, including 10m at 2576ppm cobalt, 8.8 per cent sulphur & 7.7 per cent iron from 19m.
Broken Hill said continuity of mineralisation has been confirmed over 52 holes for 6,472m (RC: 4,675m, Diamond: 1,797m).
The company now has extensive metallurgical and engineering programs underway to support a Scoping Study due 30 June 2017.
A Farm-In and Royalty Agreement means Cobalt Blue Holdings Ltd (ASX: COB) can earn 100 per cent of the project if it completes a four-stage farm-in by committing $9.5 million project expenditure by 30 June 2020, and pays BPL $7.5 million in cash.
BPL will receive a 2% net smelter royalty on all cobalt produced from the Thackaringa tenements for the life of mine while it retains the base and precious metal exploration rights over the Thackaringa tenements, where it is actively exploring for Broken Hill style (lead-zinc-silver) mineralisation.
“Completion of over 6,400 metres of drilling at the Thackaringa cobalt project is a major milestone for the company,” Broken Hill Prospecting CEO Trangie Johnston said in the company’s announcement to the Australian Securities Exchange.
“The latest assay results continue to impress, with confirmation of grade and continuity of mineralisation in the outcropping ridge-line deposits.
“Technical studies are well advanced to support the Scoping Study due by the end of June 2017.”