Pinnacles Cobalt

Pinnacles Cobalt/Nickel Project

Cobalt Mineralisation

  • Extensive historic drilling data set currently being compiled.
  • Results show a flat lying near surface cobalt zone including: PN44 16m @ 0.27% Co, >1% Ni, 0.58% Mn from 18m PN100 8m @ 0.29% Co, 0.73%Ni, 2.09% Mn from 10m; including: 2m @ 0.8% Co, >1% Ni, 4.6% Mn from 14m PN168 30m @ 0.16% Co, >1.0 % Ni, 0.86 Mn from 10m
  • Historic data search confirms rock chip assays up to 1.30% cobalt at Pinnacles Project.
  • Resource Estimate to be fast tracked once data compilation completed.
  • Project extends Montezuma’s technology metal thrust targeting the manganese, lithium and cobalt markets.

An ongoing historic data review has confirmed the potential for high grade cobalt associated with manganese-nickel oxide mineralisation at its 100% owned Pinnacles Project. The Pinnacles Project is located ~75km north east of Kalgoorlie, and ~50km from the Company’s Lake Johnston Lithium Project.

The Project was extensively drilled for lateritic nickel mineralisation until 2004. Cobalt was not a specific focus of the historic work however it is clear from the available data that there is significant shallow cobalt enrichment in parts of the deposit, providing an opportunity to fast track the calculation of a mineral resource estimate at very low cost to the Company using this data set.

The addition of cobalt to the Company’s project portfolio strengthens Montezuma’s strategic position as it expands into the technology metal space to take advantage of increasing metal prices resulting from strong projected demand growth as the world moves from a fossil fuel energy system to one which is based on renewable energy production and battery storage.  Most key battery technologies use lithium with manganese and/or cobalt, the target commodities for the  Company’s Butcherbird, Lake Johnston and Pinnacles Project.

The data presented represents a sub sample of a larger historical data set which is currently being compiled and validated. The results compiled to date suggest that further work is warranted on the deposit and the Company intends to allocate further resources to complete the data compilation and validation work. This will form the basis of an initial resource estimate before the next phase of work is planned.

As a result of the historic work being focussed on the nickel rather than the cobalt mineralisation, the Company believes there may be potential for further work to better define the higher grade cobalt zones within the greater lateritic nickel orebody.

The apparent association between cobalt and manganese mineralisation will be further explored in future analyses as this may have importance in relation to understanding the cobalt distribution but also potential metallurgical processing options.

Table 1: Selected drilling intercepts from the Pinnacles Cobalt Project[1]. Intervals show selected zones with >0.1% average grade from drillholes illustrated on the South Holl Prospect section.  All intersections are downhole widths. In the case of vertical drillholes, widths are interpreted as being approximately true width.

 

Drill Ready Nickel Sulphide Potential

Drilling targeting a bedrock EM anomaly encountered a thick cumulate ultramafic up to 150m in downhole thickness. Visual observations and portable XRF readings indicated the potential presence of weakly disseminated (cloud) nickel sulphide within the ultramafic.

Laboratory assays support these observations, and show that the likely magmatic sulphides are confined to discrete zones proximal to the margins of the ultramafic, with nickel/copper values up to 0.35% Ni/0.03% Cu (The non-mineralised ultramafic averages ~0.10-0.22% nickel).

The location of sulphides and geochemical profile of the stratigraphy is typical of a differentiated ultramafic that is intrusive in origin. Petrology will now be completed to confirm these observations. The EM target remains untested and ranks highly given the presence of potential magmatic nickel sulphides within the host ultramafic and lack of other conductive lithologies encountered within PNRC0001.

[1] Paterson, P 1998, ‘Combined Annual Mineral – Exploration Report December 12th – April 30th 1998 E28/589, 590, 680’. WAMEX Item A 55268
5 Kanowna Lights NL ASX Release 28 October 1998 ‘First Quarter Activities Report’.