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With due diligence complete, Delecta acquires cobalt-copper mine

Published 06-FEB-2019 10:56 A.M.


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With due diligence now complete, ASX junior Delecta (ASX:DLC) has exercised the option to acquire the Highline cobalt and copper mine.

This acquisition is a key component of DLC's strategy to diversify its operations and capitalise on the accelerating demand for battery minerals.

DLC reported today that underground sampling of the Highline mine has confirmed the high-grade nature of the previously exploited mineralisation. Results have indicated the presence of high-grade cobalt and copper mineralisation, including:

  • 3.37% cobalt, 10.2% copper, 2.28 g/t gold and 20.1 g/t silver
  • 0.93% cobalt and 1.96% copper
  • 0.79% cobalt and 0.42% copper

Furthermore, stream sediment sampling results from the mine have included:

  • 3.51% cobalt
  • 36.70% copper and 58.8 g/t silver
  • 25.50% copper and 49.7 g/t silver

As mentioned, with the due diligence process now complete, DLC has exercised its option to purchase, and has advised its next steps in exploration will include detailed geological mapping of identified mineralised zones to identify drill targets.

DLC managing director, Malcolm Day, commented on the milestone news: “I am very pleased with the results of the exploration program and excited to complete the acquisition of the Highline Project. The results have confirmed the high-grade nature of the project and significantly increased its potential.

“The company believes that the Highline Cobalt-Copper project represents a relatively low risk opportunity in an area of known mineralisation. 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,” he said.

The Highline project in more detail

The Highline cobalt-copper project comprises five patented mining claims totalling 90.4 acres located within the Goodsprings mining district in southern Nevada (USA), 48km southwest of Las Vegas and approximately 3km southwest of the town of Goodsprings, Nevada.

Location plan for Highline cobalt-copper project

DLC completed an exploration program at Highline only recently, which also involved underground mapping of the mine and stream sediment sampling of drainages.

A total of six rock-chip samples were taken from the workings, with the sample demonstrating similar results to those completed by the vendor and reported in a previous announcement.

Results returned up to 3.37% cobalt and up to 10.2% copper; sample HL1 also included highly anomalous gold and silver, returning 2.28 g/t and 20.1 g/t respectively.

During the stream sediment program, seven rock-chip samples were collected from old workings / prospect pits.

Sample HL18001, taken from dump material at an adit found within the claim group 150m south-south-east of the Highline adit, returned 36.7% copper and 58.8 g/t silver. A second sample found 152m west-north-west of the Highline adit was found to contain 4.15% copper.

What’s next for Highline?

DLC has big plans for the Highline project, with a detailed exploration program consisting of geological mapping and sampling over the areas defined by the stream sediment geochemistry in the western claim.

Further, exploration of the Highline mine area is planned to determine the mineralisation controls and its extent. Each will lead DLC’s process of identifying drill targets.

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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.

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