Northern Cobalt Limited (ASX: N27) announced on 14th March that the 3D model following aeromagnetic survey previously taken over Snettisham, Alaska in late February, had confirmed vanadium and gold potential at the prospect. The study, which accumulated the data for the modelling, was conducted over an Alaskan-style mafic-ultramafic intrusive complex, that hosts a significant concentration of titaniferous and vanadium-bearing magnetite and gold mines in the vicinity.
The previously taken survey confirmed a magnetic anomaly, and as per the latest magnetic survey by the company, it has identified the magnitude of the total field magnetic anomaly to exceed 24,000nT (nanoTesla) and proceeded to produce a 3D model of the subsurface distribution of magnetite-based upon an inversion by University of British Columbia.
The inversion process takes inputs from complex algorithm to deliver an outcome, which represents the likely distribution of magnetite-based upon its physical properties, primarily, its magnetic susceptibility, which causes a change in the earth’s magnetic field nearby to its location beneath the ground.
3D modelling results:
As per the company, the 3D model incorporated magnetite body, which marked their presence close to surface approx. 50m depth. The result shows that the magnetite content remains or exceeds 70%, which equates to corresponding 40% contained Fe.
As per the company, the drilling in the provinces has been done previously by the United States Geological Survey (USGS), and they reported the average grade of the magnetite body at 20% Fe, even when USGS did not drill the main magnetitic anomaly in the area.
The company’s model predicts magnetite body to be very large and is in the order of 2.5km long, up to 600m wide and over 2km deep from less than 50m beneath the surface in Snettisham prospect.
The project is present with the Juneau Gold Belt of southeast Alaska, which has produced over 7 million ounces of gold thus also makes it a gold potential project. The gold mines such as Crystal, Friday, Minehaha occurs with the boundary of the project area. As per the company, the recent aeromagnetic survey identified significant gold mineralisation within the provinces.
The gold in the area is present as lode gold within fault and sheer structures in the host rocks. The project area has a mafic-ultramafic intrusive complex and granite intrude layered metasediments and metavolcanics, which when subject to deformation and metamorphosis during the gold producing event, produces a favourable environment for the deposition of gold mineralisation in space forming structure. All the mines along with the boundaries of the project denote the same structure.
The recent survey mapped these structures, and the company plans for targeting sampling to identify and test these structures for the upcoming field season.
The samples from the beach adjacent to the project resulted in low-grade magnetite material and concentrated grades for the samples were 66.1% Fe, which denotes the iron ore potential of the project.
Northern Cobalt, with an aim to test the depth to high-grade magnetite mineralisation and primary grade of both iron and vanadium mineralisation, plans to commence three diamond drilling holes in the project.
Such a project that extends the company’s product profile, places it in an excellent position to diversify the commodity associated risks.
The shares of the company are trading at A$0.063 (as on 14th March 2019), up by 8.62% as compared to its previous close.
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