Ardea Resources’ [ASX:ARL] share price is up 21.19% today after the company announced a successful drill result.
What did it find?
The company has confirmed ‘high-grade cobalt and nickel mineralisation’ at its Goongarrie South project. And as an added bonus, it found a moderate amount of scandium.
It’s good news for the resource-based company, as cobalt is in hot demand. In April, Ardea even flagged a focus on cobalt. It seems that focus is now set to pay off with today’s find.
Managing Director Dr Matt Painter said, ‘These drilling results are exceptional and confirm Goongarrie South KNP Cobalt Zone to be potentially the premier cobalt-nickel resource in Australia.’
The bold claim could well see Ardea maintain ongoing success for the long term.
What next for Ardea?
Short term, Ardea is set to conduct further tests as development progresses. However, initial analysis is positive, with the company confirming that the area has potential for future mining.
On 9 June, Bloomberg reported on the crazy conditions headed for the dwindling cobalt market. Dr Painter said current supply was lacking. He also noted that Ardea’s WA project could hold the largest deposit of cobalt in the developed world. Today’s result has certainly helped that claim.
This is all fantastic news for a company that has only been listed since February this year. Clearly, management has a strong direction and is convinced the company can deliver.
Investors will certainly be hoping for more good news from future digs.
Junior Analyst, Money Morning
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