logo-loader
viewA-Cap Resources Ltd

A-Cap Resources acquires nickel-cobalt project as cobalt price hits highest level since 2008

Cobalt price is US$95,000 a tonne, or about 200% higher compared to January 2017.

a graphical representation of cobalt and its uses
Cobalt is a key ingredient in new-age batteries

A-Cap Resources Limited (ASX:ACB) has entered into an agreement to acquire a nickel-cobalt project in Queensland, Australia.

The project represents a strategic opportunity for A-Cap to diversify its mineral portfolio into cathode materials production and supply to the battery industry.

Meanwhile, A- Cap will continue to focus on its flagship Letlhakane Uranium Project in Botswana, aiming to supply uranium products for nuclear facilities and to the battery industry markets.

Increased focus on battery markets

A-Cap chairman Shen Angang said: “The option to purchase ML 80098 is part of A-Cap’s intention to extend its clean energy related strategy from uranium focussed to include minerals related to energy storage materials.

“As nickel and cobalt are integral to battery cathode production, this agreement marks the beginning of a targeted resource approach for A-Cap.”

Cobalt is a key battery metal

Cobalt is a key ingredient in new-age batteries used for electric vehicles and energy storage, and prices have surged.

Carmakers from Tesla (NASDAQ:TSLA) to Volkswagen (ETR:VOW) are looking to secure long-term supplies of cobalt for use in their rechargeable batteries.

The LME (London Metal Exchange) cobalt price is about US$95,000 a tonne, or about 200% higher compared to January 2017.

Nickel-cobalt project in Queensland

The project was extensively drilled by BHP-INCO in the late 1960’s, and again in the late 1990’s by Preston Nickel.  Queensland Pacific Nickel also worked in the area again in the early 2000’s.

This historical work was aimed at defining an economic nickel- cobalt resource hosted in laterite.

Throughout the past exploration programs, the various companies have conducted extensive metallurgical and other technical studies to define an economic nickel resource.

A-Cap’s objective is to revisit the past exploration work and conduct additional drilling and metallurgy with the focus on cobalt mineralisation.

Quick facts: A-Cap Resources Ltd

Price: 0.017 AUD

ASX:ACB
Market: ASX
Market Cap: $14.82 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Emmerson Resources discusses recent diamond drilling...

Emmerson Resources Ltd (ASX:ERM) managing director and CEO Rob Bills updates Proactive on the first diamond drilling activities at the Whatling Hill Project in NSW.  A 1,500-metre reverse circulation (RC) and diamond drilling program is targeting an interpreted porphyry copper-gold...

3 days, 2 hours ago

2 min read