Northern Cobalt Ltd (ASX:N27) have announced drilling of high priority cobalt targets is now underway at their Wollogorang project in the Northern Territory.
Approximately 250 drill holes are planned to depths of 20 - 40 m, the depth of drilling limited by the water table, however this should also make any finds more amenable to simple, cost effective mining.
Initial enthusiasm for the greater project and the Stanton resource saw N27’s share price hit highs of 67 cents in late 2017, after the IPO in September 2017. The rise partly explained by the Stanton cobalt resource being expanded to 942,000 tonnes at 0.13 Co - up 88% since the IPO.
The issue of shares to acquire further ground, and a cobalt commodity uncertainty in 2018 has seen the share price back down to earth however, with an 8 month trend resulting in today’s price of 13 cents.
During 2018 N27 have added substantial ground to their Wollogorang project, and by substantial - it is bigger than many nations. The company now have 4990 km2 in tenements locked away, with further applications pending.
Aeromagnetic surveys were undertaken to identify further Stanton style deposits, and with the drills now turning on 21 of the most prospective targets, speculative investors may be keeping a close watch here for results given the super low market cap of this explorer.
Longer term, while the project is in a semi remote part of the country - distance to port appears fine with the Bing Bong port 200 kms to the North-West, and Karumba 340 kms to the East-South-East in Qld. Electricity and water issues will need to be tackled - but if that is going to be an issue to be dealt with, holders of shares from this level will be highly delighted.
N27 Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
