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Accelerate Resources focused on cobalt and conglomerate-hosted gold

Samples from the Mt Read Cobalt Project graded up to 7,800 ppm cobalt.
maps of Australia with company projects marked
The company's projects are prospective for cobalt, gold, copper and nickel

Accelerate Resources Ltd (ASX:AX8) listed on the ASX in February 2018 after raising the maximum amount of $5 million in its oversubscribed initial public offering (IPO).

The company’s project portfolio consists of the Mt Read Cobalt Project in Tasmania and four gold projects across Western Australia.

The initial focus will be on the Mt Read Cobalt Project 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.

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

Surface sampling and an induced polarisation (IP) survey was used to define drill targets at Thomas Creek.

Maiden drilling commenced at Thomas Creek

In early April 2018, Accelerate’s maiden drill program commenced focusing on three targets identified by modelling following a recent 3D induced polarisation (IP) survey.

READ: Accelerate Resources’ survey reveals large cobalt-copper-gold target in Tasmania

Modelling defined a large chargeable anomaly of about 400 metres by 600 metres below a surface copper-cobalt anomaly.

The depth to the top of the anomaly is around 100 metres below the surface.

Three diamond holes planned

Accelerate plans three angled diamond holes to test two shallow targets and one deeper target within the chargeable feature.

Initial drilling of the central IP feature is the first step of a potentially much larger exploration program in the Thomas Creek area.

Shallow diamond drilling completed in the early 1990s confirmed anomalous copper-cobalt-gold but did not test the IP chargeability anomaly.

Further drilling will be carried out to follow up any significant mineralisation intersected in the initial holes.

Survey identifies anomalies

The IP survey was carried out by Zonge Engineering and Research Organisation Pty Ltd under the supervision of Southern Geoscience Consultants Pty Ltd.

It covered 10.8 line kilometres on five north-south oriented lines and one east-west line.

As well as the large moderately high chargeability, low resistivity anomaly three other satellite chargeable zones on the limits of the survey were identified.

These will be investigated by future follow-up IP surveys.

READ: Accelerate Resources moves to expand cobalt project in Tasmania

In mid-April 2018, Accelerate applied for three new exploration licences adjacent to its Mount Read Cobalt project in western Tasmania.

The three new licences cover 282 square kilometres and importantly host prospective lithologies equivalent to the Mount Read Volcanics.

Tenements within Tasmania strategic prospectivity zone

Notably, the Mt Read project tenements are within a zone that comes under the Mining (Strategic Prospectivity Zones) Act 1993.

The Act ensures continuing access for mining purposes to areas of Tasmania having very high potential for mineral exploration.

Mount Read Volcanics belt hosts 100+ year life mines

The Mount Read Volcanics host all western Tasmania’s significant base and precious metal mines and mineral occurrences.

Several of these mines have been significant producers of base metals for over 100 years.

This productive mineralised belt has profitable copper-silver and gold production of Mount Lyell, Rosebery, and Henty Gold Mine.

It also hosts numerous smaller sites of prospective mineralisation.

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.

In April 2018, cobalt priced surpassed US$90,000 per tonne, nearly double the price 12 months prior.

Western Australian gold portfolio features conglomerate-hosted gold

The Bulgera, Mt Monger and Comet gold projects are located in the Eastern Goldfields of Western Australia, proximal to a number of world-class deposits.

The fourth gold project is in the Pilbara region and prospective for conglomerate-hosted gold mineralisation.

The discovery of conglomerate-hosted gold in the Pilbara has been a large share price catalyst for multiple ASX-listed gold explorers over the past year.

The Pilbara Gold Project covers part of the Fortescue Group of the Pilbara Craton and includes units of the Hardey Formation.

Importantly, the Hardey Formation is thought to be prospective for conglomerate-hosted gold mineralisation.

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