European Cobalt shares jumped on Friday morning after the explorer returned high-grade cobalt and nickel from shallow underground drilling at its flagship “Dobsina” project in Slovakia.

The stock (ASX:EUC) was up 13 per cent to 5.3c in morning trade.

European Cobalt shares have been hit hard this year — alongside many of its cobalt peers — falling from highs of 28.5c.

Shallow portable drilling at the historic Joremeny Adit underground mine at Dobsina returned high grades of up to 4.9 per cent cobalt and 5.04  per cent nickel.

In general, less than 1 per cent cobalt is low grade and over 2 per cent is high grade.

But the high price of the battery metal at the moment is making large deposits with grades of as low as 0.1 per cent economic.

European Cobalt managing director Rob Jewson said that all mineralisation intersected was within 5 metres of existing historical development.

“Hand portable diamond drill results received to date represent only 90m of mineralised strike being tested to a maximum depth of 5m,” he said.

“The results to date have been highly encouraging [which] have validated the exploration strategy implemented.”

The European Cobalt (ASX:EUC) share price over the past year.
The European Cobalt (ASX:EUC) share price over the past year.

The historic Joremeny Adit underground mine production grades of up to 8 per cent cobalt & 17 per cent nickel.

More than 110km of underground mine development occurred at Joremeny Adit across the extensive operating history between in the 13th Century and the 19th century.

No modern exploration has been conducted at Dobsina, the company said.

The company held cash and cash equivalents of about $3.2 million at the end of June.