Estrella Resources Ltd (ASX:ESR) has received Western Australian government approval for a works program to target higher grade cobalt mineralisation at its Scotia East cobalt prospect north of Kalgoorlie in Western Australia.
The Department of Mines, Industry Regulation and Safety approval will mean the company can press forward with testing up to 1 kilometre of a potential strike length that features nickel-cobalt mineralisation.
Perth-based Estrella plans to start to drilling at the project 80 kilometres from Kalgoorlie-Boulder as soon as possible.
First-pass sets vision
Results from first-pass drilling at Scotia East included: 7 metres at 0.21% cobalt from 7 metres, including 1 metre at 0.42% from 8 metres; and 11 metres at 0.16% from 3 metres, including 2 metres at 0.33% from 4 metres.
Estrella flagged the current strength of cobalt prices and said it had identified extensive areas it wanted to follow-up.
Among the company’s intended targets are the areas north and south of the east-west cross-section Estrella drilled previously with three 30-metre-deep vertical holes.
These had produced results such as 7 metres at 0.21% cobalt and 0.68% nickel from 7 metres, including 1 metre at 0.42% cobalt and 0.75% nickel from 8 metres.
Estrella reported that these complemented encouraging historical drilling results.
The cobalt price was at US$31.75 a pound two days ago while the nickel price was US$6.33 a pound.