Northern Cobalt (ASX: N27) is buoyed by the copper and cobalt potential at its Running Creek prospect in the Northern Territory after drilling returned a thick mineralised copper intersection ending in mineralisation above the actual target.
Drilling confirmed copper from surface and ended in mineralisation resulting in a 55m intersection grading 0.78% copper.
This intersection comprised 33m at 1.08% copper from 11m, and 13m at 2.01% copper from 11m.
Additionally, a new induced polarisation survey at the prospect has identified a chargeable target beneath the mineralisation. Northern Cobalt anticipates this anomaly represents an extension of high-grade copper-cobalt mineralisation at depth.
“The identification of significant copper mineralisation in drilling, above an extensive IP chargeability target at Running Creek has opened up the potential for a significant new copper mineralised system only 1.8km to the east of the Stanton cobalt deposit,” Northern Cobalt managing director Michael Schwarz said.
Cobalt potential compares to Stanton
In addition to the copper, cobalt was found in the thick intersection with one interval returning 12m at 380 parts per million cobalt from 22m.
Another drill intersection pulled up 5m at 1,604ppm cobalt from 20m.
“The laboratory results have shown us that the samples we submitted have a lot more cobalt in them than what field analysis had previous indicated,” Mr Schwarz said.
He added drill results to-date had unearthed similar intersection widths and grades to the Wollogorang project’s primary Stanton cobalt deposit, which has a resource of 942,000 tonnes grading 0.13% cobalt, 0.06% nickel and 0.12% copper.
According to Northern Cobalt, the Running Creek prospect is revealing a much larger mineralised system than Stanton.
“We previously thought the system appeared to be dominated by copper mineralisation, but the new laboratory data has shown significant cobalt occurs within the system,” Mr Schwarz noted.
“The project continues to show the extent of the mineralisation that runs through the Wollogorang project,” he added.
Running Creek and the Stanton deposit are both part of Northern Cobalt’s extensive Wollogorang project, which is about 180km from Borroloola and 870km from Darwin.
Northern Cobalt plans to test the chargeable anomaly beneath the current 55m intersection and is planning a drilling program.
Mr Schwarz said he anticipated “good mineralisation” will be uncovered.
As a result of the oncoming wet season, the company is looking at using a helicopter supported diamond drill rig to firm up the target as soon as possible.
“We are very excited about the Running Creek prospect and what it could bring for the company,” Mr Schwarz said.