Kuniko Limited (ASX: KNI) has secured a crucial drilling permit that establishes its right to explore at the Skuterud Cobalt Project in Norway.
The Norwegian Directorate of Mining approved Kuniko’s application to undertake its planned 7-hole, 2,800m drilling campaign at the project, which includes three ‘highly prospective’ targets, of which two are considered ‘confident’ Co-Cu mineralisation targets.
Addressing the update, Kuniko CEO Anthony Beckmand said: “With most of the world’s cobalt metal supply controlled by China and around 60% currently sourced from the Democratic Republic of Congo (“DRC”), along with Russia being the world’s second largest producer of cobalt, there is a prevailing threat to security of supply for European battery manufacturers.
The danger to EU industry posed by a reliance on non-domestic supplies has been laid bare with the Russian invasion of Ukraine. In response, the EU announced plans for energy independence from Russia by 2027 and an acceleration of a transition to renewables. This will require more cobalt and other battery metals ethically sourced, responsibly developed and from a secure supply source in Europe, for Europe.
“The danger to EU industry posed by a reliance on non-domestic [cobalt] supplies has been laid bare with the Russian invasion of Ukraine”
There are already a number of cobalt refineries in Scandinavia, but they will need a domestic supply of cobalt concentrate.
Kuniko has an enormous opportunity with the Skuterud Cobalt Project in Norway, and we are delighted to have had a rapid positive response to our drilling permit application from the Norwegian Directorate of Mining. We have three strong targets and plan to develop this important project as fast as possible to help meet Europe’s growing need for a domestic supply of cobalt.”
Drilling contractor Norse Diamond Drilling AS is expected to commence work in the first week of May, whilst a reconnaissance site visit at all three drill locations will be carried out within the coming weeks in order to de-risk equipment mobilisation.
Kuniko has said that all targets include conductive anomalies at depth, with two of these sitting within the Fahlband trend where historic mining has occurred. These are supported by the integration of recently-acquired geophysical data with soil sampling and historic data.
Map displaying the three maiden drill targets at the Skuterud Cobalt Project. Image: Kuniko LimitedThe third target was delineated as a favourable conductivity response in the geophysical dataset, but is not located along the Fahlband trend. It is anticipated that the mineralisation from this target style may differ from the others.
Moving forward, preparations for sampling across four project sites – Skuterud, Ringerike, Undal- Nyberget, and Nord-Helgeland, are reported to be proceeding smoothly. The company notes that its future plans for exploration on the properties include additional soil sampling, channel rock chip composite sampling, and diamond drilling.
