Confidence builds in Northern Cobalt’s drilling campaign
Published on: | by Trevor Hoey
Shares in highflying newcomer Northern Cobalt (ASX:N27) continued to surge on Monday morning as the company announced that it had commenced drilling at its Stanton Cobalt deposit, part of the Wollogorang Cobalt Project located in the Northern Territory.
The company is aiming to upgrade the current mineral Resource, and a further 21 high priority cobalt prospects will be drill tested.
Management has contracted a second rig, enabling it to commence drilling in mid-October with a view to receiving meaningful results prior to the onset of the wet season.
N27 expects the 20,000 metre drilling program to be completed before the end of 2017 with the initial goal being to upgrade the current JORC 2012 Resource by focusing on more than 40 drill holes adjacent to the established Resource.
Following that initiative, a further 21 nearby prospects — 11 of which have historical mineralised drill intersections — will be tested.
Given N27’s shares spiked 35 per cent in the last two weeks after management flagged the upcoming drilling campaign, it would appear that investors are feeling confident of success in an area that has proven to be highly prospective for cobalt.
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