The Coronation Dam Cobalt-Nickel Project (100%)

March 2018

Highlights

  • Significant cobalt mineralisation identified in existing drilling including:
    • 16 metres at 0.42% cobalt and 1% nickel from 20 metres
      • 8 metres at 0.51% cobalt and 1.16% nickel and;
      • 4 metres at 0.67% cobalt and 1.29% nickel
    • 24 metres at 0.23% cobalt and 0.80% nickel from 20 metres
    • 28 metres at 0.13% cobalt and 0.74% nickel from 8 metres
    • 32 metres at 0.12% cobalt and 0.92% nickel from 4 metres

The Coronation Dam Cobalt Project is located 90km south of Glencore’s Murrin Murrin mining operation and 45km south of GME Resources’ proposed Mt Kilkenny nickel-cobalt processing facility in WA’s north-eastern goldfields (Figure 2). The project is surrounded by world class mining infrastructure and multiple operating mines. Glencore is currently mining cobalt and nickel from the Murrin East open pit which contained an initial resource of 66 million tonnes at 1.1% nickel and 0.09% Cobalt.

The Coronation Dam project area covers 16km2 and contains an outcropping ultramafic unit that is approximately 1 kilometre wide and 5.7 kilometres long within the tenement.

Cobalt-nickel mineralisation occurs as a shallow layer of cobalt-enriched manganiferous oxides that form between the smectite clays and the overlying ferruginous clays. High grade cobalt mineralisation typically occurs between the surface and 50 metres depth and is associated with nickel mineralisation.

Substantial shallow cobalt-nickel mineralisation has been identified over a large area. Drill results include:

  • 16 metres at 0.42% cobalt and 1% nickel from 20 metres including;
    • 8 metres at 0.51% cobalt and 1.16% nickel and;
    • 4 metres at 0.67% cobalt and 1.29% nickel
  • 24 metres at 0.23% cobalt and 0.80% nickel from 20 metres
  • 28 metres at 0.13% cobalt and 0.74% nickel from 8 metres
  • 32 metres at 0.12% cobalt and 0.92% nickel from 4 metres

Cobalt mineralisation occurs in several places, starts at surface and extends up to a depth of 50 metres. The mineralisation has developed in the regolith profile above an intensely weathered ultramafic unit which was originally a peridotite.

The Company has sought government approval to conduct drilling 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 drilling and cobalt mineralisation at Coronation Dam near Kookynie in Western Australia. Yellow and green dots are historical drill hole locations.

 

Figure 2: Location and infrastructure map of the Coronation Dam and Ghan Well cobalt projects. The area is serviced by rail, roads, towns, airports and Glencore’s nickel processing facility at Murrin Murrin