No Czech-mate for Auroch as disappointing results send stock tumbling
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Auroch Minerals has received disappointing cobalt and copper results from the final two holes drilled at its Tisová project in the Czech Republic.
Auroch (ASX:AOU) shares lost 20.87 per cent of their value by midday, slipping to 9.1c.
While gold results were “encouraging” — up to 2.73 grams per tonne (g/t) — the cobalt and copper results were lower grade and across narrower intervals than expected.
Mineralised intercepts included 0.4 metres at 0.03 per cent cobalt and 2.73 g/t of gold, and 1 metre at 0.1 per cent cobalt, 1.13 g/t of gold and 0.5 per cent copper.
To be considered at least medium grade, cobalt should be between 1 and 2 per cent and copper should be between 0.5 and 1.5 per cent.
Grab samples taken from historic waste dumps last year returned grades of 0.69 per cent cobalt and 17.1 per cent copper.
“While the results are not as hoped for, analysis of the drill core versus the previous grab samples suggest a different origin for the two sets of samples within the large Tisová deposit,” chairman Glenn Whiddon told investors.
“We believe this to be a logical explanation for the drilling results based upon the historical mining, dating back to 1600s.
“This implies that there remains a cobalt rich portion of the orebody that was not tested by our initial four drill holes and further investigation is warranted.”
Auroch now plans to review the 3D model of the sulphides, and use geophysical methods to identify the source of the cobalt mineralisation sampled on the dumps.
The Perth-based exploration minnow inked an option agreement in mid-2017 to acquire 100 per cent of the historic Tisová mine and three surrounding exploration licence applications in northwest Czech Republic.
For Auroch, who is focusing on metals crucial to the renewable energy space, the presence of cobalt at Tisova is hugely significant.
Tisová is in the heart of the European industrial hub. It’s surrounded by major lithium-ion battery companies including BMW, Mercedes Benz, Volkswagen, Samsung and Porsche, which puts Auroch at a significant advantage to its peers.
Stockhead is seeking further comment from the company.