Jervois Mining (JRV.V) (ASX:JRV), the Australian company that acquired M2Cobalt (MC.V) earlier this year has published the assay results of the first drill campaign on its Bujagali project in Uganda. The company drilled five holes at Bombo (for a total of 1,325 meters) and 12 holes at Waragi (for a total of 2,225 meters).

Of the five holes at Bombo, three didn’t encounter any significant results but the two holes that did encounter mineralization were quite interesting. In hole 1, for instance, the drill bit seems to have intersected three discrete zones of copper mineralization but surprisingly the assay results didn’t return any cobalt or nickel values.

Considering the drill bit only encountered copper mineralization, Jervois’ drill program in the fourth quarter of the year will focus on the Waragi target where this first pass drill program did encounter acceptable cobalt values. The total strike length of the Waragi target is now 20 kilometers based on a geophysical anomaly which has now been confirmed by the drill bit. As you can see in the table here below, the intervals aren’t very spectacular, but at least decent copper-cobalt grades were intersected.

Just to provide some clarification: at a cobalt price of $35,000 per tonne, a grade of 0.10% cobalt represents a rock value of $35/t. So 0.15% cobalt is $52.5/t and the 4.3 meters at 0.17% cobalt has a very respectable rock value of almost $60/t. Nothing to get extremely exciting about given the relatively short intercepts but at least the grades are promising so it’s quite understandable Jervois Mining is keen to follow up on these zones. A budget for an additional 2,500 meters of drilling has been approved and considering the Bombo zone will first be subject to a ground EM survey, we assume the majority of the drilling will zoom in on the Waragi target.

Additionally, the company will also complete 2,500 meters of drilling on the Kilembe structure, on top of completing more magnetics and a rock chip and soil sampling program. Drilling should start later this month as the drillers have already mobilized.

Disclosure: The author has a long position in Jervois Mining.

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