Cobalt Blue Holdings Confirms Railway Mineralisation Grade

THE DRILL SERGEANT: Cobalt Blue Holdings (ASX: COB) released initial assays from its a resource definition drilling program underway at the company’s Thackaringa cobalt project in New South Wales.

Cobalt Blue Holdings declared the results to have demonstrated strong continuity of cobalt mineralisation along both strike and down dip of previous drilling carried out at Railway.

The company said the assays boost the potential for it to enhance the project Mineral Resource supporting the transition from an Inferred to an Indicated Resource, in line with an ongoing Pre-Feasibility Study (PFS).

The company is currently compiling 2017 drill results into an upgraded resource estimate, which it expects to be released by April 2018.

The latest results come from the first 18 reverse circulation (RC) holes drilled at the Railway deposit.

Best intercepts include:

72m at 1,115ppm cobalt, 10.1 per cent sulphur and 9.8 per cent iron from 15m;

25m at 1,204ppm cobalt, 9.5 per cent sulphur and 10.6 per cent iron from 154m;

18m at 1,145ppm cobalt, 7.5 per cent sulphur and 7.5 per cent iron from 11m;

67m at 906ppm cobalt, 9.5 per cent sulphur and 9.1 per cent iron from 64m;

20m at 982ppm cobalt, 12.2 per cent sulphur and 11.4 per cent iron from 10m and 113m at 830ppm cobalt, 7.3 per cent sulphur and 7.8 per cent iron from 104m; and

41m at 1,096ppm cobalt, 10.4 per cent sulphur and 10 per cent iron from 61m.

The current drilling program totals 75 holes, comprising 16 diamond drill (DD) holes and 59 reverse circulation (RC) drill holes and is designed to upgrade to an Indicated Resource, expand the overall resource base, provide comprehensive geotechnical information and supply sample for additional metallurgical testing.

“The work continues to add substantially to our geological understanding of Thackaringa, with its significant combined strike length of 4.5 kilometres and widths varying from 25 to 100 metres,” Cobalt Blue Holdings chairman Rob Biancardi said in the company’s announcement to the Australian Securities Exchange.

“We look forward to the Indicated Resource upgrade to be released by 1 April 2018.”