Ann: Due Diligence Completed and Option Exercised, page-3

 

Nice write-up from Matt Birney

Matt BirneySponsored

Wednesday, 6 February 2019 5:01AM

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ASX listed junior explorer Delecta Limited has exercised its option to acquire the Highline cobalt-copper project in Nevada, USA, after completing due diligence that confirmed the high-grade nature of its mineralisation.

The company will pay the vendors $150,000 in cash and 50 million shares in the company to acquire Silver Queen Mining, which owns the project.

Under the due diligence work, Delecta carried out underground mapping of the Highline Mine that confirmed the previous underground map.

Notably, six rock chip samples taken in the workings returned results similar to those completed by the vendor with top results of up to 3.37% cobalt and 10.2% copper.

Previous sampling of these workings returned grades of up to 2.86% cobalt and 7.08% copper.

The company also collected a total of 49 stream sediment samples within the Highline Claim Group that identified two multi-element coincident anomalous drainages areas.

The first area is the known mineralisation at the Highline Mine and the unnamed adit located about 150 metres east-southeast that includes anomalous lead and zinc above the level of the workings while the second are is a drainage bisecting the western claim in the Highline Group.

Delecta also collected seven rock chip samples during the stream sediment program.

Significant results include 3.51% cobalt, 36.7% copper and 58.8 grams per tonne silver, and 25.5% copper and 49.7g/t silver in another sample.

The company plans to carry out an exploration program consisting of detailed geological mapping and sampling over the areas defined by the stream sediment geochemistry in the western claim and the Highline Mine area.

This will determine the mineralisation controls and its extent in a bid to identify drill targets.

Delecta Managing Director Malcolm Day said: “I am very pleased with the results of the exploration program and excited to complete the acquisition of the Highline Project. The results have confirmed the high-grade nature of the project and significantly increased its potential.”

“The company believes that the Highline cobalt-copper project represents a relatively low risk opportunity in an area of known mineralisation.”

The Highline project comprises 5 patented mining claims totalling 90.4 acres that are divided into the Highline and Pocahontas claim groups within Nevada’s mineral-rich Goodsprings district.

It is located just 48 kilometres southwest of Las Vegas and is surrounded by four historical cobalt mines that produced at high grades in their day.

Delecta’s move to acquire the Highline project will give the company some interesting ground with evidence of high grade cobalt and copper.

Just how far the company can take this project with the use modern exploration techniques, will certainly be something to keep an eye on.