As part of its due diligence process for acquiring the cobalt and scandium projects in New South Wales, Victory Mines (ASX: VIC) has engaged a geology team to review the projects and compare imagery to nearby tenements.
The geology team has already undertaken an expanded desktop analysis, which involved comparing magnetic imagery of Victory Mines’ NSW-based Malamute and Husky projects to nearby projects owned by Australian Mines’ (ASX: AUZ), Clean TeQ’s (ASX: CLQ), and Platina Resources (ASX: PGM).
After the review, the geology team indicated to Victory Mines its Husky and Malamute tenements there was a “strong indication” mineralisation was present.
Now it has identified targets, the geological team will head to site to carry out field work and analysis at Malamute and Husky, which encompass 244 hectares.
“The board is delighted with the comparative imagery results as they clearly confirm excellent potential cobalt and scandium mineralisation within the Husky and Malamute project areas in NSW,” Victory Mines chairman Dr James Ellingford said.
Dr Ellingford added that if the board elected to complete the acquisition, Victory Mines’ strategy would be to define JORC-compliant scandium and cobalt resources across its NSW projects and its other two new assets in Western Australia.
The two WA projects Peperill Hill and Galah Well are in areas known for cobalt prospectivity, with historic exploration returning 2,430 parts per million cobalt at Galah Well and 7,290ppm cobalt at Peperill Hill.
All projects are in proximity to power, roads and a local labour pool.
In mid-November, Victory Mines emerged from a trading halt with news of the acquisitions.
The projects will be gained via a take over of the current owner Cobalt Prospecting by issuing Cobalt Prospecting more than 357 million Victory Mines’ shares at A$0.007 each with additional share issues upon milestone achievements equating to about 31.5% of Victory Mines’ expanded issued capital.
While many small caps swam in a sea of red this afternoon, shares in Victory Mines were up more than 20% in mid afternoon trade to A$0.017.