The Exploration Licence Application for Group 1 minerals (Metallic minerals) applies to an area of land of about 75 square kilometres located just over 10kms south east of Wauchope. The area applied to be explored roughly stretches from Grants Head, Bonny Hills, to Port Macquarie and the Oxley Highway.

Cazaly Rescources Limited announced to the Australian Stock Exchange at the end of March they had lodged an application to explore the area’s nickel-cobalt resources. 

It is unclear what relationship there is between Baldock and Cazaly, but the application lodged concerns the same area of land. In the project announcement Cazaly states the application “indicated surficial resources potentially amenable to open pit mining”.

“Potential for on-site processing with previous metallurgical testwork indicating greater than 80 per cent recovery using atmospheric acid leach technology.

“Cobalt is one of the three key elements, with lithium and graphite, that make up Lithium-ion batteries – a rapidly emerging market.”

The announcement states that cobalt-bearing manganese oxide was first discovered in the Lake Innes area in 1886. Exploration of the area in 1962 involved drilling, channel sampling and metallurgical testing. 

“In 1996 an airborne magnetic survey and comprehensive drill out was conducted and in 1997 the maiden resource estimate was announced.

“The Lake Innes project greatly complements the company’s existing and recently granted other eastern states located cobalt projects being Bungonia (Queensland) and Mount Tabor (NSW). The company looks forward to expediting grant of the project and beginning ground activities as soon as practicable.”

Fairfax Media has contacted the consultants for Baldock Fe and Cazaly Resources for more information.