Additional High Grade Cobalt Found at Thackaringa Ahead of Resource Upgrade

A major drilling program consisting of 1,797m Diamond and 4,675m Reverse Circulation (RC) was completed during March. The campaign reflects a significant milestone in Cobalt Blue’s fulfilment of requirements under its Farm In agreement with BPL.

Receipt of final assays has allowed completion of the updated geological model and supports the commencement of Mineral Resource estimation across the three deposits - Railway, Pyrite Hill and Big Hill. The extensive stratabound cobalt-pyrite mineralisation is hosted by quartz-albite gneiss. Drilling results announced on 28 March 2017, 4 May 2017 and today, confirm the significant scale of the deposits.

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Recent results have provided additional confidence in continuity along strike by infilling zones of widely spaced historical drilling. Mineralisation has now been delineated over a combined strike length of 4.5 kilometres, with widths varying from 25 to 100 metres. The increased thickness is typically due to the extensive development of isoclinal folding within the pyritic horizon.

Mineralised intercepts include:

  • 17THD09 - 46m at 1,234ppm Co, 14.8% S & 13.8% Fe from 19m
  • 17THD10 - 34.8m at 1,269ppm Co, 14.2% S & 12.5% Fe from 24m
    • including 11.4m at 1,454ppm Co, 15.5% S & 13.4% Fe from 32.1m
    • and 9.3m at 1,777ppm Co, 20.9% S & 16.7% Fe from 49.5m
  • 17THR030 - 57m at 1,097ppm Co, 11.9% S & 12.6% Fe from 24m
  • 17THR032 - 5m at 1,323ppm Co, 9% S & 8% Fe from 26m
    • and 53m at 1,218ppm Co, 15.9% S & 16.3% Fe from 44m
  • 17THR034 - 56m at 1,036ppm Co, 10.2% S & 10.6% Fe from 38m
    • including 36m at 1,217ppm Co, 12.1% S & 11.5% Fe from 38m
  • 17THR037- 49m at 1,094ppm Co, 11% S & 10.5% Fe from 18m
  • 17THR038 - 27m at 1,237ppm Co, 12.3% S & 11.4% Fe from 69m

At Pyrite Hill, mineralised intercepts include:

  • 17THR024 - 14m at 1,436ppm Co, 12.1% S & 12.3% Fe from 68m
    • and 43m at 1,082ppm Co, 9% S & 9.2% Fe from 96m –
    • including 29m at 1,363ppm Co, 10.5% S & 10.5% Fe from 110m
  • 17THR025 - 44m at 956ppm Co, 10.8% S & 12.4% Fe from 59m
    • including 13m at 1,493ppm Co, 15.4% S & 14% Fe from 60m
    • and 11m at 1,147ppm Co, 12.5% S & 15% Fe from 92m

Results for Big Hill were reported in previous ASX releases on 28 March 2017 and 4 May 2017.

A total Inferred Mineral Resource of 33.1Mt at 833ppm cobalt (500ppm Co cut-off) has previously been estimated at the Thackaringa Cobalt Project (COB Replacement Prospectus released 3 January 2017). Extensive metallurgical test work and engineering studies are progressing in parallel to support a Scoping Study due on the 30 June 2017.

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