THE DRILL SERGEANT: Cazaly Resources (ASX: CAZ) started its inaugural drilling program on the Avanti prospect, one of nine prospects within the company’s Bungonia cobalt project in New South Wales.
Cazaly Resources said the drilling program of approximately 80 holes will mostly be focused at the Avanti prospect, which is currently measuring at least 700 metres long and remains open along strike and up to 150m wide.
The company explained that work undertaken previously at the Bungonia cobalt project defined several areas of cobalt and nickel mineralisation, some of which were historically mined as early as the 1890s.
Cobalt mineralisation at the project occurs as flat lying residual on hills extending for several hundred metres associated with manganiferous deposits.
“The deposits typically contain relatively rich cobalt values, with minor nickel and copper credits, and have been worked historically with high cobalt recoveries,” Cazaly Resources said in its ASX announcement.
“The areal extent and assay results from historic work, and now work by Cazaly, points to significant potential to extend known deposits as well as make new discoveries within the project area.
“The potential is highlighted by the results of rock chip grades from this programme along with historic mining from several locations.”
Cazaly highlighted the current strength of the global cobalt price (approximately USD$84,000 per tonne) and the recent developments in the Democratic Republic of Congo (which produces approximately 60% of the world’s cobalt), whereby new legislation has increased the royalty on cobalt.