Confidence builds in Northern Cobalt’s drilling campaign
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.
Historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.