Next Investors logo grey

Delecta’s sampling results confirm high-grade mineralisation

Published 09-OCT-2018 11:50 A.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Delecta Ltd (ASX:DLC) has informed the market that recently acquired sampling results from the Highline Cobalt-Copper Project in Nevada have confirmed the high grade nature of the mineralisation.

The sampling produced cobalt results of up to 7.08% and copper results up to 12.4%.

A total of 19 samples were taken, 17 from the Highline Claim Group and 2 samples from mullock at Pocahontas.

These samples consisted of chip channel samples from accessible underground workings and dump samples from both the main workings and other prospecting pits.

Delecta managing director Malcolm Day said, “I am very pleased with the results released to us by the vendor.

“It reaffirms our commitment to the project and demonstrates the high grade nature of the mineralisation.

“Given the Highline mine’s previous mining and exploration was circa 100 years ago, the company believes that the cobalt-copper project represents a relatively low risk opportunity in an area of known mineralisation”.

Next Investors Image

Of course it is early stages in the development of the project, so investors should seek professional financial advice if considering this stock for their portfolio.

Pending acquisition marks diversification strategy

Delecta has entered into a binding option agreement to acquire a 100% interest in the high grade Highline Cobalt-Copper Project.

The Highline acquisition is part of Delecta’s diversification strategy aimed at capitalising on the demand for battery minerals such as cobalt, lithium and vanadium which has seen the rapid rise in the London Metals Exchange (LME) price of cobalt from US$23,000 per tonne in March 2016 to US$58,000 per tonne in October 2018.

Management intends to utilise the 90 day option period to complete a geological review of the project and surrounding area and conduct an initial exploration program to identify and map mineralisation both at surface and within existing accessible workings.

The following results highlight some of the high-grade mineralisation delineated.

Next Investors Image

At the Highline Mine the drive followed a vertical fault zone to a mineralized zone that was stoped and assumed to be the source of the reported production.

The initial two samples HHL001 and 2 are from the fault zone.

Samples HHL003 to 6 inclusive show the presence of increasing amounts of mineralization with sample HHL006, taken on the edge of the stope, returning 0.289% cobalt and 0.493% copper.

Samples HHL010, 11 and 15 to 19 are from mullock surrounding the adit.

They returned varying amounts of cobalt and copper ranging from 0.325 to 1.72% cobalt and 0.169 to 12.4% copper.

Other shallow adits and prospecting pits are present above the main adit testing bedding plane hosted mineralisation.

Some may be testing the up dip extension of the mineralisation that was exploited from the stope while others are possibly related to a parallel mineralized zone.

Samples HHL007, 8, 9 and 14 were taken from these workings, and they returned from 0.06% to 7.08% cobalt and from 0.914% to 2.86% copper.

There were also signs of lead and zinc mineralisation at an adit on the Pocahontas claim which lies on the blower contactable limestone unit, and this will be the target of further exploration should the acquisition be completed.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.