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Cohiba Minerals (ASX:CHK) dives despite high-grade intercepts

Mining
ASX:CHK      MCAP $10.76M
10 March 2021 16:00 (AEST)

Source: Cohiba Minerals

Cohiba Minerals’ (CHK) shares have plummeted despite high-grade assay results from the company’s Horse Well Project.

The mining company has been conducting a targeted exploration program at the South Australian project since early 2020. The Horse Well Project lies within the Gawler Craton, a region well-known for being prolific with iron ore-copper-gold (IOCG) deposits.

Thus far, Cohiba has drilled four deep holes at the project, in order to test distinct IOCG target zones. The company has now received the assay results from the two latest holes, HWDD_03 and HWDD_04.

Both holes encountered rock types which are typical of an IOCG environment, but hole HWDD_04 stood out by returning what were described as “spectacular” copper grades. The hole was assayed from 950 metres depth to 1, 432.6 metres depth and encountered persistent low-level copper throughout the 473.6-metre length. 

Other high-grade intersections included 0.9 metres at 1.85 per cent copper, 0.8 metres at 12.15 per cent copper, 0.4 metres at 0.97 per cent copper, and 0.5 metres at 2.58 per cent copper.

Cohiba Minerals’ CEO, Andrew Graham, commented that results from the Horse Well drilling program have provided encouragement that the company is drilling in the right direction.

“Cohiba will expand its exploration efforts at Horse Well to further investigate these target areas as well as additional new targets that have been identified,” he said.

“We remain focussed on identifying one or more IOCG deposits to generate significant value for our shareholders. The company is also committed to its other projects at Pernatty C and Lake Torrens and is planning to conduct programs of work at these locations as well,” he added.

Despite the assay results, Cohiba Minerals has fallen 63.83 per cent to trade at 1.7 cents per share at 3:04 pm AEDT.

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