Corazon Mining has been looking for high-grade cobalt in New South Wales and has uncovered a new gold zone.

The new “high-tenor gold anomaly” was uncovered 2km south of the Cobalt Ridge deposit – one of the highest grade cobalt deposits in Australia, according to Corazon (ASX:CZN).

Cobalt is typically found with copper or nickel.

But in this case the new gold zone has “associated cobalt”, Corazon told investors.

The news sent shares up 10 per cent to 1.1c on Friday morning.

While Corazon is looking to identify extensions to the mineralisation at Cobalt Ridge, it is also looking to define new targets within the greater Mount Gilmore project area.

The Mount Gilmore project area hosts multiple historical copper and gold workings exhibiting mineralisation similar to that at Cobalt Ridge that have yet to be tested for cobalt, Corazon noted.

Corazon Mining (ASX:CZN) shares over the past three months.
Corazon Mining (ASX:CZN) shares over the past three months.

The 18km “Mount Gilmore trend” hosts more than 25 historic workings with high-grade copper of up to 26.8 per cent and gold of up to 9.2 grams per tonne (g/t).

Anything over 1.5 per cent copper and 5g/t gold is considered high grade.

Corazon says the discovery “exemplifies Cobalt Ridge’s blue-sky potential” for cobalt, copper and gold sulphide deposits within the Mount Gilmore project.

The company revealed in May that it can produce battery-grade cobalt from the Mount Gilmore project.

Corazon has been contacted for comment.