Thackaringa Drilling Uncovers Higher Cobalt Grades 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 step in Cobalt Blue’s fulfilment of requirements under the Farm In agreement.

The drilling program was designed to provide representative samples for metallurgical test work and to support a Mineral Resource upgrade across all three deposits: Railway, Pyrite Hill and Big Hill.

The extensive stratabound cobalt-pyrite mineralisation at each deposit is hosted by quartz-albite gneiss, and drilling results announced today and on 28 March 2017 confirm continuity and grade of the cobalt-pyrite mineralisation. Additional assay results are expected to be announced in late May 2017.

At Railway, assays confirm broad intersections of high-grade mineralisation - with potential to add to the existing resource. Mineralised intercepts include:

  • 17THD06 - 46m at 1136ppm Co, 11.4% S & 10.1% Fe from 39m
  • 17THR001 - 36m at 1075ppm Co, 10.6% S & 10.4% Fe from 27m
  • 17THR005 - 20m at 1053ppm Co, 12.8% S & 12.6% Fe from 52m 
  • 17THR008 - 41m at 1319ppm Co, 12.2% S & 11.2% Fe from 37m
  • 17THR011 - 53m at 1116ppm Co, 12% S & 10.9% Fe from 30m 
    • including 31m at 1423ppm Co, 15.5% S & 13.5% Fe from 31m

At Pyrite Hill, mineralised intercepts include:

  • 17THD01 - 89m at 982ppm Co, 9.4% S & 8.7% Fe from 34m
    • including 41m at 1366ppm Co, 11.8% S & 11% Fe from 81m
  • 17THR016 - 49m at 1096ppm Co, 12.9% S & 13.4% Fe from 66m
  • 17THR017 - 58m at 1383ppm Co, 13.2% S & 12.8% Fe from 54m
    • including 29m at 2042ppm Co, 18.3% S & 15.8% Fe from 56m
  • 17THR021 - 20m at 1204ppm Co, 13.1% S & 12.7% Fe from 44m

At Big Hill, mineralised intercepts include:

  • 17THR013 - 54m at 888ppm Co, 5.4% S & 5% Fe from 19m
    • including 10m at 2576ppm Co, 8.8% S & 7.7% Fe from 19m
  • 17THD04 - 9m at 1033ppm Co, 8.6% S & 8% Fe from 20m

Mineralisation at the three deposits has a combined strike length of 4.5 kilometres, with widths varying from 25 metres to 100 metres. The increased thickness is typically due to the extensive development of isoclinal folding within the pyritic horizon. All holes were drilled at inclinations between 40 and 60 degrees into the steeply-dipping host lithology. 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 31 January 2017). Extensive metallurgical test work and engineering studies have commenced to support the Scoping Study due on the 30 June 2017.

To view the full ASX release click here.

Cross section through Railway deposit (17THR11-13BED01) illustrating significant Co-S-Fe & Ag-Pb-Zn drilling intersections
Railway deposit geological plan illustrating position of cross section (above).