Cazaly Resources Limited (ASX: CAZ) has confirmed the presence of shallow high grade cobalt mineralisation associated with manganese enriched quartz sandstone units at its Bungonia Cobalt project in New South Wales.
The company said it had received positive high grade results from first pass reconnaissance mapping and rock chip sampling on the Bungonia Cobalt project.
The highest grade Cobalt found in rock chip samples to date measured 1.40% Co.
In total the company has recently collected 34 rock chip samples from 6 targets within the project area on properties where access has been negotiated with landowners or from road verges. Eight of the of 34 samples recorded above 1.0% Co with an overall average of 0.62% Co.
Several areas were visited where historic data indicated exposed arenaceous cobalt/manganese bearing units. The areas sampled during this first phase work represent a small percentage of known mineralisation throughout the entire project area.
The project is held under Exploration Licence EL8483, covers approximately 242 sq.km and is located 130km north east of Canberra and 25km south east of Goulburn in New South Wales.
Previous exploration defined several areas of significant cobalt and nickel mineralisation some of which have been historically mined as early as the 1890’s.
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Cobalt mineralisation occurs as flat lying residual on hills extending for several hundred metres associated with manganiferous deposits. The deposits typically contain relatively rich cobalt values, with minor nickel and copper credits, and have been worked historically with high cobalt recoveries.
The areal extent and assay results from historic work point to significant potential to extend known deposits as well as make new discoveries within the project area. The potential is highlighted by the results of rock chip grades from this programme of up to 1.4% cobalt along with historic mining from several locations.