Aim-listed African Battery Metals (ABM) is now continuing work across its Democratic Republic of Congo (DRC) cobalt and Cameroon cobalt/nickel projects, following a strategic review.
The company intends using the data obtained to identify an optimal value generation pathway for the company and its investors.
The battery metals exploration and development company says an updated review, supported by in-country partners, has been undertaken across four licences at Ngoila Nord, Ngoila Est, Ekok and N’dja, as well as two licence applications at Ntam Est and N’Gaoundere.
“Following a review of all available information and liaison with our in-country partners, ABM decided to continue our work in Cameroon, where the tenements held are seen as highly prospective for elevated grades of nickel and cobalt,” explains ABM executive director Paul Johnson.
The review work undertaken as part of the strategic and operational planning has confirmed that the Cameroon projects should be continued by ABM, he says, pointing out that a forward work programme is being developed and will be announced in due course.
In December, ABM embarked on sweeping changes across the company, following a suspension from trading on Aim, owing to a weak financial position.
By March, the junior miner successfully concluded its refinancing process, with a refinancing plan developed, along with a review that included the prioritisation of ABM’s existing interests and resource targets, the development of a strategic and operational plan, an initiative to identify – review and consider new opportunities – and a programme to cut corporate costs, Mining Weekly reported last month.
When these initiatives were approved by shareholders in February, the company was allowed to resume trading on Aim, with Johnson assuring that ABM was now in a robust financial position and able to take the steps it needs to “drive its business forward and potentially flourish”.
“Any recovery scenario should look to focus on existing interests first, extracting the best opportunities and building from that core,” he said at the time.
Prior to this, in August, ABM acquired Cobalt Blue Holdings, the holder of the four prospecting licences and two prospecting licence applications, in Cameroon, because of the prospects’ close proximity and geological similarity to Geovic Mining’s Nkamouna deposit.
“The proximity and geological similarity of our interests to the Nkamouna deposit are highly attractive, particularly given the scale of Nkamouna,” he says, adding that the projects also complement the licences in the DRC, which are prospective for cobalt.
Johnson believes that Nkamouna remains, outside the DRC, the largest undeveloped cobalt resource globally.
Geovic published a National Instrument (NI) 43-101-compliant mineral resource report on the Nkamouna deposit, showing a total measured, indicated and inferred mineral resource of 323- million tonnes of 0.21% cobalt, 0.61% nickel and 1.26% manganese, with NI 43-101-compliant proven and probable mineral reserves of 0.26% cobalt, 0.66% nickel and 1.48% manganese.
“Aside from the resource delineated at Nkamouna, Geovic also identified cobalt/nickel mineralisation in five other blocks, [namely] Rapodjombo, North Mang, South Mang, Messia and Kondong, in the same region,” he adds.
“The company believes there is the possibility of more cobalt/nickel mineralisation in the area other than the large resource delineated by Geovic.”