Alloy Resources finds ‘big’ cobalt zones in Broken Hill
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Alloy Resources says it has uncovered five “big” new cobalt zones each extending from 2km to 3km at its Ophara project in the western NSW town of Broken Hill.
Alloy (ASX:AYR) discovered the zones through soil sampling over a 60 sq km area of the project.
Shares hit an intra-day high of 1.7c just after market open on Wednesday, notching a 41.7 per cent bounce before quickly retracing their gains back to 1.2c.
The program covered the area surrounding the known Great Goulburn cobalt-gold prospect to define extensions and repetitions of the mineralisation.
The soil sampling has extended the Great Goulburn anomaly from 700m to 3km, Alloy told investors.
The new zones are open along strike and Alloy plans to resume infill and extension sampling within the next two weeks.
Alloy’s Ophara project is adjacent to, and has the same geology as, Cobalt Blue’s (ASX:COB) Thackaringa cobalt deposit.
It is also located 10km to the west of Havilah’s (ASX:HAV) Mutooroo copper-cobalt-gold project, which also has similar geology.
Cobalt remains a hot commodity for explorers and investors alike, particularly given the price of the battery metal recently hit a decade-high of $US95,000 ($123,651) per tonne.
Cobalt is used in making rechargeable batteries for electric cars.
Electric or hybrid cars and buses are expected to reach 27 million by 2027, up from 3 million last year. Demand for electric car batteries is expected to drive demand for cobalt eight-fold by 2025.
Alloy has been contacted for comment.