The Speculator

26 October 2011

Broken Hill Prospecting (BPL) last week announced drill results from its Pyrite Hill project about 25 kilometres southwest of Broken Hill, NSW. The drilling encountered thick and continuous horizons of cobalt to at least 300 metre down-dip of previously encountered mineralisation. These remain open at depth. Seven of the eight drill holes encountered mineralisatiion at 17 metres to 108 metres in thickness, with grades ranging up to 4230 grams per tonne. New resource calculations will now be undertaken to update the current inferred JORC-compliant resource discovered by earlier explorers of 10.6 million tonnes of 2.1 pounds per tonne (998 grams per tonne). At last week’s 11.5¢ close, the company carries a market capitalisation of $9.5 million, supported by about $3 million cash at bank. We’ll hold in there and hope to get a better view of the world cobalt market ahead of the resource update now under way.

Eureka Report (Speculator) 26.01.2011