Cobalt-focussed Northern Cobalt (ASX: N27) has edged into the lithium space after acquiring a 100% interest in nine prospective tenements in the Northern Territory’s northern Arunta pegmatite province.
The company has applied for four adjoining tenements to compliment the landholding, which has been labelled the Arunta project. In addition to lithium, the tenements are believed prospective for cobalt, cerium, tantalum and rare earth elements niobium and ytterbium.
“This new project acquisition in central Australia aligns with the company’s strategy to pursue commodities essential to the renewable energy future of the planet,” Northern Cobalt chairman Len Dean said.
“These are primarily lithium and cobalt, which are in high demand for modern batteries,” he added.
Expanding its exposure to the lithium-ion battery boom with the acquisition, Northern Cobalt anticipates the new project will compliment its flagship Wollogorang cobalt project, which is also in the Northern Territory.
Northern Cobalt has planned to kick off exploration activities at Arunta in early 2018 while it awaits its final assay results from its recently completed drilling campaign at Wollogorang.
Initial exploration at Arunta will involve geological mapping and rock chip sampling.
Under the acquisition terms, Northern Cobalt will issue 600,000 fully paid ordinary shares to the vendor Gempart to gain the 100% interest.
Wollogorang cobalt project
Meanwhile the latest assays from the Wollogorang drilling campaign have returned cobalt grading up to 2.33%, as well as 1.01% nickel and 0.45% copper.
Further assays from the 137-reverse circulation and 10 diamond core drilling program are anticipated in batches through to February.
An updated inferred resource for Wollogorang is due by the end of March, with a resource upgrade to indicated status scheduled for June.
According to Northern Cobalt, the mineralisation identified at Wollogorang is predominantly cobalt sulphide and non-refractory – meaning it won’t require roasting leading to reduced capital and operating expenditure.
Located in the Northern Territory’s north east, Wollogorang is situated between two potential ports, which are accessible by sealed road.
“Northern Cobalt is in an excellent position heading into 2018 with a resource upgrade planned at our advanced Wollogorang cobalt project which will then form the basis of early scoping studies,” Mr Dean said.
“I am very pleased to see such rapid progress after successfully listing only 12 weeks ago on the ASX,” Mr Dean added.
Shares in Northern Cobalt ended the day up almost 5% at A$0.44.