Golden Mile Resources finds high-grade cobalt domain within existing Quicksilver resource
Special Report: Stage 3 metallurgical test work at the Quicksilver project in WA has identified a high-grade cobalt domain within the existing resource, which may be amendable to upgrading.
A high-level geological review by Golden Mile Resources (ASX:G88) on the Quicksilver resource found the high-grade cobalt domain relates to manganese oxides, which the company believes could be mined in conjunction with the nickel-laden saprolite.
G88’s drill hole database confirms this domain contains significant intersections with an average grade of up to 0.3% cobalt and widths up to 13m.
The Company says this work – which is in the advanced stages – is critical in guiding the next phases of drilling and indicates the resource material may be amenable to upgrading via wet scrubbing, screening and gravity separation with concentrate grades up to 0.85% cobalt demonstrated.
G88 managing director Damon Dormer says the geological interpretation is providing the company with valuable insight into the potential controls on both the nickel and cobalt mineralisation at Quicksilver.
“The cobalt domain is extensive and with it positioned on the interface of upper and lower saprolite horizons means it effectively sits at the top of the nickel laden saprolite,” he says.
“The ability to domain this zone for the updated mineral resource estimate will enable the value of this concentrate to be captured in the scoping study.
“It is also showing that cobalt containing minerals within certain size fractions can be preferentially separated to a gravity concentrate.”
While there is still more work for G88 to complete, Dormer is excited to explore an opportunity for the cobalt-rich domain to be mined in conjunction with the nickel-laden saprolite, with separation into the concentrates occurring in the plant.
“The separation of a high-grade cobalt concentrate should effectively have minimal additional mining cost as the cobalt rich zone is mined on the way to the high-grade nickel zones below,” he says.
“Should a simple gravity separation step prove effective, the recovery of a high-grade cobalt concentrate would be expected to incur only incremental processing costs.
“The value of additional high-grade concentrates cannot be understated in insulating the Project from adverse market conditions and it’s on the back of excellent geological and metallurgical work that has been carried out over the previous 12 months.”
This article was developed in collaboration with Golden Mile Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.