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Ausmon Resources up 40% after being granted tenements near Broken Hill prospective for cobalt

The new licences are near Cobalt Blue Holdings’ Thackaringa Cobalt Project.
ASX chart with upwards arrow
Ausmon is pursuing a cobalt strategy in New South Wales and Queensland

Ausmon Resources Ltd (ASX:AOA) is a leading ASX gainer on news of the grant of two exploration licences near Broken Hill prospective for cobalt.

This comes as the company focuses on cobalt, a key new-generation battery ingredient, in New South Wales and Queensland.

The new licences will form part of the Broken Hill Cobalt-Nickel Project, which is near the Thackaringa Cobalt Project of Cobalt Blue Holdings Ltd (ASX:COB).

Shares were up 40% in early trade to 1.4 cents with 30 million traded before 1pm.

READ: Ausmon Resources shares spike on deal to acquire prospective cobalt ground

Ausmon’s wholly-owned subsidiary New Base Metals Pty Ltd has been granted the licences, EL 8745 and EL 8746, for six years by the NSW Government Planning and Environment Department.

A third exploration licence, ELA 5639, which forms part of the existing Broken Hill project should be granted soon under usual procedures.

ELAs 5637 and 5638 have been granted as ELs 8745 and 8746, and are near Cobalt Blue’s EL6622.

The company recently announced its acquisition of New Base Metals, which held the Broken Hill as well as the Greenvale Cobalt-Nickel Project in Queensland.

Accessing Broken Hill core library

While waiting for the grant of ELA 5639, the company has engaged a consultant geologist to access the Broken Hill Geological Core Library.

This is being done to assess diamond core from historical drilling within the ELA 5639 area to plan a re-logging and assaying for cobalt.

Previous explorers did not assess the drilling results for cobalt.

Results from this work are expected to assist in refining exploration programs.

Airborne survey planned

An airborne survey is also planned to delineate any prospective cobaltiferous pyrite horizons on ELA 5639 for drilling when the tenement is granted.

Recent exploration has demonstrated that the Broken Hill region is highly prospective for pyritiferous cobalt deposits as well as stratabound cobalt deposits.

This work is headed by Cobalt Blue, which together with partner Broken Hill Prospecting Ltd (ASX:BPL) recently announced a major cobalt resource upgrade.

The JV partners have also recently announced a partnership with multi-national conglomerate LG International.

Queensland work programs approved

Ausmon this week received approval from the Queensland Government Department of Natural Resources and Mines for work programs proposed at the Greenvale Cobalt-Nickel Project.

The project covers about 276 square kilometres and is 20-50 kilometres from Australian Mines Limited’s (ASX:AUZ) Sconi project, reportedly the most advanced cobalt project in Australia.

Approval of the work programs is a significant step in the approval process of the exploration permit.

It provides a level of assurance which enables Ausmon to finalise project planning and be ready to commence exploration activities as soon as possible after grant.

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