THE BOURSE WHISPERER: Metalicity (ASX: MCT) has lodged three exploration license applications (ELAs) covering an area of 210 square kilometres it considers to be prospective for cobalt mineralisation.
The applications are located in an area recently identified as a new cobalt district in the Yerrida Basin of the Northern Goldfields of Western Australia.
The Kyarra cobalt project (E51/1755, E51/1756 and E53/1894) lies within the Proterozoic Yerrida Basin on the northern margin of the Yilgarn Craton.
The project adjoins the Tabac cobalt-gold project, where intersections of cobalt have been reported including 80m at 0.77 per cent cobalt.
Metalicity said the location and stratigraphic position of the observed cobalt anomalism has been interpreted by others to have similarities to the mineralisation model of the copper-cobalt deposits of the Zambian Copper Belt.
Widespread cobalt anomalism exists across the Yerrida basin in historic surface rock chip samples, rotary air blast (RAB) drilling between 20 metre to 40m depth, and in diamond core drilling to 388m.
The company said the extent of the cobalt anomalism highlights potential for a cobalt mineralising system.
Within the Kyarra cobalt project area anomalous historical results have been reported including up to 0.64 per cent cobalt from surface samples and 2m at 612 ppm cobalt from drilling, across an initial strike extent of approximately 25 kilometres.
The Kyarra Cobalt project is well located in terms of access and infrastructure for exploration and mining, being located on the Goldfields Highway 40km west of Wiluna.
Metalicity claimed the three ELAs provide it with a dominant land holding in this newly identified cobalt district.
The company now has desktop and field exploration work underway with compilation of all historical exploration data, acquisition and re-processing of relevant geophysical data, as well as geochemical sampling and field surveys to identify priority areas for drilling once the tenements are granted, which is expected to be in the first half of 2017.
“The Yeririda Basin is interpreted to have similarities to the copper-cobalt deposits of the Zambian Copper Belt and widespread cobalt anomalism exists at Kyarra located in a newly identified cobalt district,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.
“The existing high sovereign risk supply of cobalt and lithium-ion batteries driven demand, means Metalicity is highly leveraged to exploration success at Kyarra.
“The project is also complementary with our portfolio of lithium and graphite projects also located in WA.”