Accelerate makes a new cobalt discovery in Tasmania; shares jump 23pc
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Accelerate Resources has uncovered grades of cobalt that it says are above the industry average in the very first hole of drilling at its Mt Read project in Tasmania.
Shareholders applauded the discovery, driving Accelerate’s (ASX:AX8) shares up 23 per cent to an intra-day high of 16c this morning.
The first hole drilled at the Thomas Creek prospect has delivered a hit of 3m at 0.23 per cent cobalt from 150m, including 1m at 0.33 per cent cobalt.
Drilling also returned a 1m length of 0.15 per cent cobalt and 0.31 per cent copper from 157m.
Managing director Yaxi Zhan said the industry average grade for cobalt is about 0.1 to 0.15 per cent.
“That is above the industry average and this is the first hole the company has drilled,” she told Stockhead.
“So if we are comparing to other companies which have drilled 100-plus holes, the first hole we discovered that the cobalt in soil is on the surface and we have replicated the results 100m down hole. So that is quite an encouraging result.”
Accelerate only listed on the ASX in mid-February and since then has undertaken soil sampling, surveys and initial drilling.
The company is waiting on the results of another two holes, which Ms Zhan says Accelerate is “quite optimistic” about as well.