The Inferred category resource is at the Pacific Highway prospect and measures 697,000 tonnes grading 1,157 ppm cobalt, 9,043 ppm nickel and 39.5 ppm scandium.
This results in contained metal of 806 tonnes of cobalt, 6,301 tonnes of nickel and 27.5 tonnes of scandium.
MinRex’s director Simon Durack said: “The board is pleased the geology team has been able to model an inferred cobalt resource to the current JORC code.
“Of significance is the cobalt grade, which the geology team believes ranks highly when compared with Australian peers, and the potential to materially expand the resource size with more exploration work followed by a targeted drilling program.”
Maiden resource shows project’s value potential
Given cobalt’s increasing price over the past 18 months, this maiden resource shows the Pacific Express project’s value potential.
At current spot prices of US$87,500 per tonne, the contained cobalt metal in this Inferred resource has a current gross value of over A$90 million.
Project has several other high-priority targets
MinRex’s geology team believe the resource can be materially expanded with additional exploration work on high priority areas.
The Pacific Highway prospect represents only a small area within the Pacific Express tenement.
With several other high priority targets already identified, there is significant potential to expand the resource size with an exploration drilling program.
Acquisition due diligence focus on Western Australia projects
In March 2018, MinRex proposed the acquisition of Clean Power Resources Pty Ltd, an exploration company with three projects.
These projects are the Pacific Express Project and two Western Australian projects, Knight and Dragon about 50 kilometres west of Leonora.
Having modelled an inferred resource, MinRex's geology team have completed the pre-acquisition due diligence on the Pacific Express project.
The geology team’s focus will now turn to finishing acquisition due diligence on the two Western Australian projects.