Investors in junior gold explorer Gold Mountain (ASX: GMN) have welcomed news of widespread cobalt mineralisation at the company’s Crown Ridge, Papua New Guinea deposit where it has already turned up high-grade gold nuggets.
The PNG-focused precious metals explorer today announced a portable XRF analyser had recorded high cobalt readings from panned concentrates collected from drainages at the Crown Ridge asset in Enga Province.
Gold Mountain said it had completed both analysis of heavy mineral concentrates and drill core using the handheld analyser.
Cobalt of up to 0.44 per cent grading was found in the panning sediments collected from current drainage.
XRF readings of up to 4430 parts per million cobalt were achieved, an average of three readings, the company revealed in its announcement today.
“The cobalt is likely to be derived from mafic / ultramafic rocks that have contributed to the Timun Conglomerate unit at Crown Ridge,” Gold Mountain said in a statement.
“The Timun Conglomerate contains significant amounts of gold and platinum and constitutes the main target mineralisation at Crown Ridge.
“The detection of significant cobalt in the panned concentrates adds another dimension to the Crown Ridge project.”
Earlier this month, the explorer unearthed bonanza-grade gold nuggets at Crown Ridge.
Gold Mountain’s announcement today tipped a low-cost gravity process with to recover gold and platinum could also recover high cobalt contents in heavy mineral concentrates as a by-product at its flagship asset.
Investors in the company took to online forums to welcome the latest discovery, hopeful of a prospective poly-metallic deposit from the company’s exploration efforts.
The company said diamond drilling and bulk pit sampling at the site was continuing, towards its goal to produce a maiden mineral resource estimate. It revealed regional exploration were also continuing.
Gold Mountain has a 2010-kilometre portfolio of tenements in the PNG Highlands and views Crown Ridge gold asset is its flagship project which it hopes to turn into a bulk gold-mining operation in the “relatively short term”.
The explorer said it was fully funded for its current drilling and bulk-sampling program, as it looks ahead towards its goal of a producing a JORC-compliant maiden resource estimate for Crown Ridge.
Gold Mountain securities closed 1c or 7.4 per cent up to 14.5c on the bourse today on volumes of 2.2 million shares traded.