Shares in Mawson Resources Ltd (TSE:MAW) nudged higher Tuesday as the company unveiled more positive drill results from the Rajapalot project in Finland.
The firm has also begun metallurgical test work and is in the process of attaining a maiden resource for the property, it said.
Today's results hail from 43 diamond drill holes across six prospect areas, and notably, the addition of cobalt values to previously reported gold intersections continues to provide significant improvements when compared with gold-only intersections, especially at the Raja and Palokas prospects.
Highlight results (from Palokas) include 33 metres (m) at 4.2 g/t (grams per ton) AuEq (gold equivalent), 3.1 g/t gold, 547 parts per million (ppm) cobalt from 38.7 metres.
At the Raja prospect, uncovered was 20.7 metres at 5.6 g/t (grams per ton) gold-equivalent, 3.6 g/t gold, 956 ppm cobalt from 365.2 metres in one hole.
"With the growing recognition of the significance of cobalt within the gold-mineralized zones, Rajapalot is quickly progressing from discovery to a more advanced stage with resource and metallurgical test work studies now commencing," said Michael Hudson, chairman and chief executive.
"This is an exciting milestone for the project as a large new mineral camp emerges.
"It is an excellent outcome for Finland, with potential for a significant and strategic cobalt deposit just 400 kilometres from the world's single largest cobalt refinery at Kokkola, which produces 50 per cent of global non-Chinese production (10 per cent of total production)."
Global cobalt supply chain
Finland plays an important role in the global cobalt supply chain. The Democratic Republic (DRC) of the Congo produced 54% of the world's cobalt in 2016, and 80% of the cobalt used in lithium-ion batteries is refined in China.
Half of the world's non-Chinese production (10%) comes from the joint venture Freeport Cobalt, the world's single-largest cobalt refinery, which lies just 400 km from Mawson's Rajapalot project in Kokkola, Finland.
A significant amount of feedstock for Freeport Cobalt comes via a long-term supply agreement with Chinese-owned Tenke Fungurume mine in the Democratic Republic of the Congo.
So, a future domestic Finnish source of cobalt from Rajapalot would satisfy the recent announcements by Finland and Sweden that the countries will work together on a traceable ledger for sustainable minerals, which are considered crucial for achieving climate goals, noted Mawson.
Shares added 2.04% in Toronto to stand at C$0.25.