After reviewing historical drill results, Renascor Resources (ASX: RNU) has identified “significant” cobalt and nickel at its 100%-owned Munglinup project in Western Australia.
The review pinpointed several targets within the project’s Boanaernup and Young River prospects, with historic intervals returning cobalt grading up to 0.15% and nickel up to 1%.
Additionally, a 4km strike near surface target was revealed, where previous drilling intersected 9.1m grading 0.11% cobalt and 1% nickel.
Situated in WA’s Albany-Fraser Range, Munglinup is near to Mt Thirsty, Mt Cattlin, Maggie Hayes, Mt Holland and Flying Fox which are prospective for cobalt, nickel, lithium and gold.
Renascor Resources will undertake a soil, surface and rock chip sampling at the targets along with an airborne electromagnetic survey prior to a drilling program.
However, the company’s focus will remain on developing its Siviour graphite project in South Australia, which encompasses about 1,370 square kilometres and comprises four granted exploration licences.
The project tis near to local towns and ports, with access to power, roads and rail.
According to Renascor, Siviour hosts one of the world’s largest known graphite resources with a JORC-compliant indicated and inferred resource totalling 80.6 million tonnes for 7.9% total graphitic carbon for 2.2 million tonnes of the contained metal.
An earlier scoping study estimated a 20-year mine life with about 123,000 of graphite produced annually.
A pre-feasibility study is underway at Siviour and is due for completion by the end of March 2018.
The study is investigating large-scale production as well as a low capital smaller scale production, which would enable operations to begin in 2019.
Renascor is in ongoing discussions with potential offtake partners from China, Europe and the US.
A spherical graphite scoping study is also underway and due to be completed by the end of December, with the mineral lease application for the project to be lodged by July 2018.
Shares in Renascor Resources had lifted more than 6% to site at A$0.032 by mid-day.