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Blackstone Minerals has made a new gold and cobalt discovery in Canada.

Cobalt is typically found with copper or nickel.

But in this instance Blackstone (ASX:BSX) has uncovered visible gold and oxidised cobalt at its Little Gem project in British Columbia.

Investors liked the news, sending shares up as much as 30 per cent to an intra-day high of 15c on Thursday.

Earlier this year another ASX-listed explorer, Corazon Mining (ASX:CZN), also uncovered a new gold zone with associated cobalt at its Cobalt Ridge project in New South Wales.

“The discovery of visible gold and cobalt at the Erebor prospect is the first known occurrence of high grade cobalt-gold mineralisation in the region since prospectors identified similar mineralisation in the 1930s which led to the initial discovery of Little Gem,” Blackstone managing director Scott Williamson said.

The discovery opens up the potential for multiple targets similar to the Bou Azzer cobalt district in Morocco, according to Mr Williamson.

Surface rock chip samples from the Erebor prospect with visible gold and oxidised cobalt. Pic: Blackstone Minerals.
Surface rock chip samples from the Erebor prospect with visible gold and oxidised cobalt. Pic: Blackstone Minerals.

Bou Azzer is currently one of the world’s only operating primary cobalt mines and has been in operation since the 1930s.

There are more than 50 deposits in the district that have been mined over 75 years with production of over 100,000 tonnes of cobalt.

Blackstone made the discovery from surface rock chip samples that were taken from the Erebor prospect located 900m to the south-west of the historic Little Gem mine adits.

“We think we’ve got the same geology as the Bou Azzer mine in Morocco,” Mr Williamson told Stockhead. “They’ve got gold through their system, but theirs is primary cobalt with a gold credit, which is similar to what we have.

“Hopefully we’ve got a similar story where we’ve got a big belt scale opportunity and that’s why we went and grabbed 48km of that particular geology.”

Blackstone Minerals (ASX:BSX) shares over the past year.
Blackstone Minerals (ASX:BSX) shares over the past year.

The company is waiting on the results of a survey that tested for further high-grade cobalt and gold prospects within the over 1.8km strike target zone at Little Gem and the nearby Jewel prospect.

Results are expected in about two weeks.