It’s all systems ‘drill’ at Meteoric’s most prospective cobalt project
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Special report: Meteoric Resources is getting ready to drill at its highest priority target in one of the world’s most prospective cobalt districts.
Meteoric (ASX:MEI) is commencing an initial 8-hole, 500m program for its Joyce project, located in Canada’s Western Ontario.
The latest results from 3D geophysical modelling revealed nine electromagnetic anomalies that are prospective for Cu-Co-Au (Copper, Cobalt, Gold) as well as positive rock chip assays at the highly prosecptive Joyce Project.
In addition to these results Joyce contains the host rock type for cobalt, copper and gold mineralisation and has historical high-grade assays of 11 per cent copper, 0.3 per cent cobalt and 8.07 grams per tonne of gold, indicating the potential of this system.
“Over recent months we have completed regional project reviews and concluded Joyce to be our most prospective target across our Canadian cobalt portfolio,” managing director Andrew Tunks said.
Cobalt in high demand
There is ongoing strong demand emerging from other electric vehicle and battery makers for the metal, but what is adding to the potential for cobalt prices to rise even further is the severe supply shortfall that has already started to emerge.
Market research provider Research and Markets says the global cobalt market is facing an imbalance in the demand-supply ratio.
The market has shifted from an oversupply in 2016 to a supply deficit in 2017, according to the recently released “Global Cobalt Market 2018-2022” report.
This pushed the cobalt price up to a record high of $US91,500 per tonne in May this year from a low of $US21,750 per tonne in February 2016. That is a 320 per cent increase in the past two years. Research and Markets predicts the global market will still grow at an annual rate of 9.26 per cent between 2018 and 2022.
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