Cobalt Blue Confirms Thackaringa Potential

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THE DRILL SERGEANT: Cobalt Blue Holdings (ASX: COB) declared it had been encouraged by assay results from a drilling program it commenced in November 2016 at the company’s Thackaringa project near Broken Hill, New South Wales.

Cobalt Blue explained the drilling had been carried out across three prospect areas, Railway, Pyrite Hill and Big Hill and that the results reinforce the cobalt and pyrite development opportunity at Thackaringa.

The drilling was commenced by Cobalt Blue’s parent company, Broken Hill Prospecting (ASX: BPL) which retains a participating interest in the project.

A total Inferred Mineral Resource of 33.1 million tonnes at 833ppm cobalt (at a 500ppm Co cut-off) has previously been estimated at the Thackaringa project.

Results released by Cobalt Blue were achieved at the Railway and Pyrite Hill deposits and include:

At Railway

16DM05
48 metres at 1,045ppm cobalt from 30m;

16DM06
42m at 1,615ppm cobalt from 28m;

16DM07
25m at 1,232 ppm cobalt from 35m and 26m at 1,456 ppm cobalt from 71m; and

16DM08
4m at 1,301ppm cobalt from 57m and 19m at 1,221ppm cobalt from 76m.

At Pyrite Hill

16DM01
52m at 840ppm cobalt from 95m, Including 7m at 1,111ppm cobalt from 96m; and

16DM02
23m at 1,392ppm cobalt from 127m.

“Mineralisation at the three prospects has a combined strike length of 4.5 kilometres with widths varying from 25 metres to 100 metres,” Cobalt Blue Holdings said in its ASX announcement.

“The increased thickness is typically due to the extensive development of tight isoclinal folding within the pyritic horizon.”

Cobalt Blue explained the 2016 drilling program, of eight fully-cored diamond drill holes at the three locations, was undertaken primarily to provide sufficient material to undertake meaningful metallurgical test work.

“By twinning previous RC holes the JV was able to confirm the tenor of mineralisation and compare the assays and sampling protocols for historical RC percussion drilling vs diamond drilling,” the company said.

“The program is designed to extend the drilling coverage and improve drilling density in support of future Mineral Resource estimations, replace some of the historical drilling for QA/QC purposes and provide material for further metallurgical testwork.”

Email: info@cobaltblueholdings.com

Website: www.cobaltblueholdings.com