With cobalt prices holding near a ten-year high and debates over a future supply shortfall abounding, it’s an opportune time for developing a cobalt project to meet expected demand down the road. For Saskatoon-based UEX Corporation (TSX: UEX), news on Monday of compelling drill results from the West Bear Cobalt-Nickel Prospect in the eastern Athabasca Basin in northern Saskatchewan is giving shares a lift to a four-week high.
The company, perhaps most well known for a portfolio of 16 uranium projects in the Athabasca Basin, the West Bear project used to be part of its Hidden Bay project, which is now separated into the West Bear cobalt-nickel project and the West Bear uranium deposit.
26 drill holes have been completed at the cobalt-nickel prospect, with a $1.5 million, 3,500-meter drill program commenced late in February with the goal of expanding the high-grade resource.
The results from assaying the first three holes of the 26 completed were disclosed today, highlighted by a cut of 2.0% cobalt and 1.26% nickel across a core of 10.5 meters as part of a 30.9-meter core assaying 0.78% cobalt and 0.53% nickel. Other compelling results included an intersect of 1.37% cobalt and 1.02% nickel across 2.5 meters as part of a larger 5.0-meter core grading 0.18% cobalt and 0.15% nickel.
Drill hole WBC-005 completed the data this morning showing a length of 20.5 meters at 0.73% cobalt and 0.36% nickel, including shorter cuts of 2.5 meters grading 1.14% cobalt and 0.47% nickel and 6.0 meters at 1.79% cobalt and 0.72% nickel.
With these results in tow, a second drill rig has been mobilized to expedite the drilling process before the spring thaw.
UEX CEO Roger Lemaitre said that the results exceeded expectations while confirming the high-grade nature of the mineralization and indicating that the mineralization occurs over a larger interval than originally thought. “We are just beginning to realize the potential of the West Bear area,” said Lemaitre in today’s news release.
Shares of UEX have surged 22.0% to 31 cents with about one hour left in Monday’s trading session. Shares had run as high as 34.5 cents earlier in the day, matching the highest level for the stock since March 5.
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