A maiden exploration program at Archer’s Yarcowie cobalt project in South Australia has yielded promising high-grade results, pushing its shares up 40 per cent.

Rock chips were collected over a large area at Yarcowie with grades ranging from 0.36 per cent (3600 parts per million) up to 0.94 per cent (9400 parts per million) of cobalt.

The stock (ASX:AXE) soared as much as 40 per cent, or 3c, to close at 11c on Wednesday. Some 6.3 million shares changed hands by the bell.

Archer Exploration's shares price over the past month. Source: Investing.com
Archer Exploration’s shares price over the past month. Source: Investing.com

Further sampling is planned.

“With North Broken Hill, Ketchowla, Polinga and now Yarcowie, our cobalt projects cover an area in excess of 1200 sq km and remain prospective for different styles of cobalt mineralisation,” Archer executive chairman Greg English said.

Yarcowie covers some 304 sq km with the tenement granted earlier this year.

The project is about 20km east of the Tesla 100MW battery array at Jamestown, South Australia. The tenement area crosses the Barrier Highway and is close to rail, power, gas and other significant infrastructure.

Archer had just over $1 million cash in the bank at end of September and a market cap of about $11 million.