JOHANNESBURG (miningweekly.com) – New project partners Cadence Minerals and Clancy Exploration are upbeat about prospects for the Leogang cobalt/nickel project extending over the Salzburg and Kitzbuhel regions of Austria, with an independent review of the project having delivered “encouraging” results.
Aim-listed Cadence reported on Monday that it had elected to acquire an initial 10% interest in the project, in accordance with a memorandum of understanding announced in mid-June. The company has completed a due diligence process, which included a technical review of the exploration potential of the area.
"Our initial review of the Leogang project has been very encouraging. There is good exploration potential for cobalt, nickel, copper and other precious metals around the historical mines and the potential of much more extensive exploration targets over the dolomite-schist contact which the licences cover,” said Cadence CEO Kiran Morzaria.
Six early stage exploration targets have been identified around the Nokelberg and Schwarzleo historical mining centres. Morzaria said Cadence and Clancy would work together to progress the exploration of these targets over the coming months, with a particular focus on high-grade cobalt mineralised areas.
With a cobalt mine, the companies hope to tap into the battery manufacturing supply chain in Europe.
ASX-listed Clancy was issued 73.75-million new ordinary shares in Cadence as consideration for the initial 10% interest. Cadence has a six-month exclusive option to acquire a further 10% interest in the Leogang project by paying Clancy a further A$1-million that can either be paid in cash or Cadence shares at the time of exercising its option, or a combination at Cadence's election.