On December 14, 2018, Northern Cobalt Limited announced the confirmation of copper and cobalt mineralization, with laboratory assays, identified in drilling and analyzed by PXRF. Drill hole 18RAB102 represented the best mineralization, which contained a thick intersection of high-grade copper mineralization with associated cobalt mineralization.
Northern Cobalt Ltd (ASX: N27) is in a mineral mining business. Listed in 2007, the company undertakes acquisition, exploration, and development of cobalt mineral projects.
Due to the identification of the significant copper mineralization in drilling, new induced polarization (IP) survey at Running Creek has opened the potential for an essential new copper mineralized system, with proximity of 1.8 kilometer to Stanton Cobalt deposit.
The company earlier assumed that the system was dominated by copper mineralization, but the new data suggests the significant presence of cobalt as well.
North-east trending structures of the Running Creek Prospect associates with mineralization. CRA originally discovered the potential presence of copper-cobalt sediments at Running Creek, way back in the 1990s. CRA identified a group of small, independent copper and cobalt mineralized systems with a limited extent.
Northern Cobalt’s recently conducted IP survey identified a large chargeable feature beneath the currently identified mineralization. The company interprets this feature to represent an extension of high-grade copper-cobalt mineralization at depth.
A whole systematic drilling program is planned to test this feature at the earliest possible opportunity.
Comparisons of Running Creek with the Stanton Cobalt Deposit: The Stanton Cobalt Deposit is dominated by copper mineral which is controlled by a north-east trending fault structure which is approximately 100m across at surface. The Running Creek system has the potential to be at least 2-3 times the size of Stanton at the surface. Evidence suggests that the mineralization also continues at depth and it makes the Running Creek Prospects a high priority for follow-up drilling soon.
Cobalt forecasting: Evidence suggests the use of cobalt in batteries would more than triple between 2017 and 2026. Even in future nickel-cobalt-manganese, 811 cathodes take off, then also overall impact would be limited. There is potential for China to ban all internal combustion engine sales by 2030. The forecasted demand for EV batteries is so large that all components of the supply must expand to meet the supply.
2018 Annual Financial performance
Northern Cobalt recently shared its annual results for the period ending 30th June 2018. The company reported an annual loss of $17.4 million, down from previous year’s $18.4 million. The balance sheets reflected total assets of around $26.8 million and total liabilities of $26.5 million
In the last six months, the share price of the company has shown a downward trend with a poor return of -74.51 %. The stock is 34 % down over the past one month.
Northern Cobalt shares are currently trading at $0.087, 24.5% up, riding on company’s recent announcement. The company has a market capitalization of $3.35 million and Earnings per share of -0.032 AUD.
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