Figure 1. Location of holes drilled during the Company’s maiden drilling program at the Colson Cobalt-Copper Project, relative to the historical underground workings at the Salmon Canyon Deposit and cobalt-in-soil geochemistry anomalism. Note that drilling from only four pads was permitted during this program (as illustrated).

Figure 2. Cobalt-in-soil geochemistry at the Colson Cobalt-Copper Project.

Figure 3. IP anomalies at the Colson Cobalt-Copper Project, relative to the historical underground workings at the Salmon Canyon Deposit and the traces of diamond core holes drilled during 2018 (illustrating the location of Cross Section 5,020,200N presented in Figure 5).

Figure 4. IP anomalies at the Colson Cobalt-Copper Project, relative to cobalt in soil geochemistry anomalism (illustrating the location of Cross Section 5,020,200N presented in Figure 5).

Figure 5. Cross-section 5,020,200N showing the Long Tom, Shallow Long Tom and Salmon Canyon IP anomalies at the Colson Cobalt-Copper Project.

Background

In late 2017, New World Cobalt Limited secured an option to acquire a 100% interest in the historical high-grade Salmon Canyon Cobalt-Copper Deposit, one of the most advanced prospects within the Idaho Cobalt Belt – the most endowed high-grade cobalt district in the western world.

The Company believed that the mineralisation at the Salmon Canyon Deposit was likely to be part of a much larger mineralised system; and that the deposit and surrounding area was heavily underexplored, with virtually all previous efforts focused on the deposit itself and the last significant work undertaken in the 1970s.

Since securing the rights to the Salmon Canyon Deposit, New World has been implementing a multi-pronged exploration and development program comprising:

  • Drilling to test for the immediate extensions of the Salmon Canyon Deposit;
  • Systematic soil sampling to identify potential extensions of the mineralised system;
  • Strategic expansion of the project area; and
  • Ground geophysics surveying over the most prospective parts of the project area to fast track identification of thicker and/or higher grade areas of mineralisation.

As positive results from exploration programs have been received, the project area, which initially comprised just 200 acres covering the Salmon Canyon Deposit, has been progressively expanded. In January 2019, the Company completed the acquisition of 100% of the Salmon Canyon Deposit, following which the Company now holds a 100% interest in more than 6,500 contiguous acres – covering more than 6km of prospective strike.

Maiden Drilling Program

In June 2018 the Company received all permits required to commence its maiden drilling program at the project. Drilling from four pads was permitted – allowing the Company to begin testing the potential strike extensions of the Salmon Canyon Deposit. A total of twelve diamond core holes were drilled during the 4,953m drilling program, generally on 80-100m spaced centres (see Figure 1).

Multiple horizons of high-grade mineralisation were intersected, with significant assay results including:

  • 5.5m @ 0.20% Co and 0.69 g/t Au, including:
    • 0.3m @ 1.26% Co, 0.17% Cu and 2.95 g/t Au (COLDD1811);
  • 1.1m @ 0.18% Co, 1.43% Cu and 0.74 g/t Au (COLDD1810);
  • 1.8m @ 0.13% Co, 0.56% Cu and 0.26 g/t Au (COLDD1801);
  • 1.2m @ 0.15% Co, 1.47% Cu and 0.23 g/t Au (COLDD1803);
  • 1.6m @ 0.12% Co, 1.42% Cu and 0.77 g/t Au (COLDD1810);
  • 1.3m @ 0.15% Co, 1.18% Cu and 0.56 g/t Au (COLDD1806);
  • 1.3m @ 0.11% Co, 0.45% Cu and 0.24 g/t Au (COLDD1812); and
  • 3.4m @ 0.04% Co, 1.51% Cu and 0.31 g/t Au (COLDD1808)

All of the holes drilled during this maiden program were located on the margins of strong induced polarisation (“IP”) anomalies that were delineated after the drilling program commenced (see below and Figures 3-5). As the initial permits allowed drilling from only four pads (as illustrated in Figure 1), drill-testing what are now known to be the strongest parts of the IP anomalies was not possible during this initial program.

Notwithstanding this, the Company is very encouraged that considerable high-grade cobalt-copper mineralisation has been intersected on the margins of these IP anomalies. This:

  • Validates that IP anomalies are arising from cobalt-copper mineralisation; and
  • Increases the Company’s confidence that thicker and/or higher-grade mineralisation may be encountered when the stronger portions of the IP anomalies are tested in the next phase of drilling.

Soil Sampling

An initial program of soil sampling, implemented in March 2018, to help identify the potential up-dip extension of the Salmon Canyon Deposit, proved extremely effective. Accordingly three more phases of systematic soil sampling have since been undertaken. This has led to the delineation of several quality targets, with the highest priority of these being the Long Tom Prospect, located several kilometres northwest of the Salmon Canyon Deposit, where soil samples assaying up to 0.11% cobalt have been returned within a 2km-long anomalous corridor (see Figure 2).

IP Surveying

Mineralisation at the Salmon Canyon Deposit comprises predominantly cobaltite and chalcopyrite – cobalt and copper sulphides. Such mineralisation was expected to give rise to anomalous IP responses, with stronger IP responses expected to arise from thicker and/or higher-grade mineralisation. Accordingly, an IP survey was completed in June/July 2018. This survey was extremely successful – indicating that the Salmon Canyon Deposit lies on the margins of a much stronger IP anomaly (the “Salmon Canyon IP Anomaly”). Additional drill pads are required to suitably drill test the stronger parts of this IP anomaly, so it will be targeted in the next phase of drilling (once new drill permits are approved).

In light of the success of the first IP survey, a second IP survey was completed in late 2018. This 3-dimensional IP survey covered the very strong Long Tom Soil Anomaly – where very high-grade assays of up to 0.11% cobalt and 0.39% copper had been returned from surface soil sampling completed earlier in 2018 (refer NWC ASX Announcement dated 19 September 2018; see Figures 3 and 4).

Several very strong anomalies have been delineated in the Phase 2 IP data, including:

  • A 750m x 750m anomaly that partially coincides with the Long Tom Soil Anomaly (see Figures 3 and 4). The strongest portion of the source of this “Long Tom IP Anomaly” is modelled to lie within about 250m of surface (see Figure 5; shallowest around 5,019,800N); and
  • A shallower, smaller, strong “Shallow Long Tom IP Anomaly” that coincides with the strongest surface geochemistry assays (1,095 ppm Co and 724 ppm Co). This anomaly is modelled to lie within about 100m of surface and may be a shallow extension of the deeper Long Tom IP Anomaly (see Figures 3-5).

Both these anomalies will be targeted during the Company’s next drilling program.

Data collected during the second phase of IP surveying has also confirmed and refined the location of the undrilled Salmon Canyon IP Anomaly (see Figures 3-5). This is a very strong IP anomaly located in a very prospective position – immediately along strike from the Salmon Canyon Deposit. It will also be targeted during the Company’s next drilling program.

Application for Permit to Undertake a Second Drilling Program

An application for a permit that will allow the Company to drill-test the recently defined strong IP anomalies and the Long Tom soil geochemistry anomaly has been submitted to regulatory authorities. Approval is expected in mid-2019. A second phase drilling program will be scheduled thereafter.

Future Work Program

Going forward, the Company intends continuing its multi-pronged approach, including:

  • In the near-term, once drill permits are approved, undertaking the first ever drill testing of the very high-priority Long Tom and Salmon Canyon IP anomalies. These are stronger IP anomalies than those evident over the Salmon Canyon Deposit itself, hence thicker and/or higher grade mineralisation is postulated;
  • Undertaking further drilling to follow up the extensions of the mineralisation at the Salmon Canyon Deposit; and
  • Continuing to undertake further soil and IP surveys – as these have proven to be extremely effective in identifying additional mineralisation within the project area.