NextSource Materials (NEXT.TO) has provided an update on its Sagar project in the Labrador Trough zone of Québec, as NEXT is keeping all its options open now the prices of certain battery metals are going through the roof. As you know, NextSource’s asset base in Madagascar provides the company with interesting access to graphite and vanadium, but the company also seems to be adding cobalt to the mix, as the initial exploration program at the Sagar property confirmed the existence of copper, gold and cobalt mineralization.
As the company wasn’t chasing cobalt (this exploration program was conducted more than 10 years ago), it didn’t really care too much for the metal, but a recent re-interpretation and review of the old drill core, NextSource thinks the potential for a widespread zone of cobalt mineralization is quite real. The IOCG type of the Sagar project is similar to the mineralization hosting the Iron Creek Cobalt project, now owned by First Cobalt (FCC.V) after it closed the acquisition of US Cobalt.
NextSource has been approached by several other companies which seem to be quite keen on putting some boots on the ground. NextSource is open for a joint venture on the property, as its main focus continues to be on the Molo graphite project in Madagascar, which is pretty much construction-ready.