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Accelerate Resources debut on ASX supported by rising cobalt prices

Cobalt is trading at 8-year highs as the electric vehicle industry continues to grow.
panned sulphides in a pan
Panned soil sample from the October 2017 Mt Read Cobalt field trip

Accelerate Resources Ltd (ASX:AX8) has successfully listed on the ASX today with shares trading as high as $0.22.

The $5 million initial public offer (IPO) was both oversubscribed and raised the maximum possible under the prospectus offering.

READ: Accelerate Resources brings gold and cobalt to ASX with listing today

The company has a portfolio of cobalt and gold projects across Tasmania and Western Australia.

The initial focus will be on the Mt Read Cobalt Project in Tasmania where soil samples taken in October 2017 graded up to 7,800 ppm cobalt, 0.86% copper, 2,300 ppm nickel and 0.81 g/t gold.

Two main prospects at Mt Read Cobalt Project

Mt Read contains two main prospects, the Thomas Creek cobalt-copper-gold prospect and the Henrietta cobalt-nickel-copper prospect.

In October 2017, four samples were collected from the Thomas Creek site.

Samples S1 and S2 were panned, while samples S3 and S4 were not.

The results collectively highlight the likely presence of a mineral system that could potentially host economic mineralisation.

Sampling and surveys commenced ahead of drilling

Surface sampling and an induced polarisation (IP) survey has commenced to better define drill targets at Thomas Creek.

Furthermore, a drill rig has been secured with a 2,000-metre campaign set to commence in March 2018.

BMW believes its needs for car battery materials will grow 10-fold

Accelerate is exploring a cobalt project at a fortunate time with cobalt’s price continuing to rise.

German car manufacturer, Bayerische Motoren Werke AG (ETR: BMW), believes that its needs for car-battery raw materials will grow 10-fold by 2025.

Furthermore, BMW expressed that it had been surprised by just how quickly demand will accelerate.

Cobalt has nearly doubled over the past 12 months, currently priced at US$81,500 per tonne.

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Accelerate Resources Ltd Timeline

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