The Coglia Well Cobalt and Nickel Deposit (100%)

March 2018

Highlights:

  • Existing drilling contains substantial cobalt and nickel mineralisation:
    • 28 metres at 0.12% cobalt and 0.55% nickel from 60 metres including;
      • 16 metres at 0.16% cobalt and 0.65% nickel
    • 12 metres at 2.2% nickel and 0.06% cobalt from 80 metres including;
      • 4 metres at 3% nickel and 0.06% cobalt
    • Mineralisation identified along a 11 kilometre trend
    • Located in a region of extensive mining infrastructure and nickel-cobalt processing facilities

The Coglia Well project is located 75km south-east of Laverton in the goldfields of Western Australia. The Coglia ultramafic complex covers an 11.5 kilometre by 1.5 kilometre area and is part of a 100 kilometre-long trend of ultramafic rock running from Diorite Hill in the north to Mulga Tank in the south. At Coglia Well, approximately 2.5 kilometres of the 11.5 kilometres of strike have been partially drill tested, resulting in the identification of extensive cobalt and nickel mineralisation.

The cobalt grade appears to increase substantially to the south of the main mineralisation, which is consistent with the grade of Glencore PLC’s adjacent Irwin Hills cobalt and nickel deposits which contain 29Mt at 0.11% cobalt and 1% nickel. A single RC hole, MERC005, drilled 2.5 kilometres south of the main mineralisation, encountered 28 metres at 0.12% cobalt and 0.55% nickel. There is a further 7 kilometres of untested prospective ultramafic rock to the tenement boundary adjacent to Glencore’s deposit.

Cobalt mineralisation occurs as a shallow layer of manganiferous oxides that form between the smectite clays and the overlying ferruginous clays. High grade cobalt mineralisation typically occurs between 30-50 metres depth and is associated with nickel mineralisation. The cobalt mineralisation generally occurs slightly higher than nickel mineralisation in the regolith profile.

At Coglia Well there is substantial nickel mineralisation and the cobalt mineralisation discussed above has formed from the same processes. The Company believes that the cobalt mineralisation has the potential to economically extractable in its own right. The proximity of the project to Glencore’s Murrin-Murrin nickel-cobalt processing plant is likely to strongly impact the possibility of economic development of both the cobalt and nickel mineralisation.

While White Cliff has not yet calculated any mineral resources it is clear that potential exists for a substantial resource. Current drilling has only tested a small fraction of the mapped ultramafic unit indicating there is potential to locate significant additional mineralisation.

The Company will commence drilling in early 2018 to verify the existing results and to provide material for metallurgical test work. If the initial exploration is promising the Company will conduct further drilling to define JORC compliant cobalt and nickel resources.

Figure 1 Location map of the tenements at the Merolia Project near Laverton WA showing the Coglia Well complex (lower right)

 

Figure 2 Coglia Well drilling plan showing historical and White Cliff drilling, geology and local deposits and mines