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Cazaly applies for new Australian nickel-cobalt exploration license

Cazaly Resources Ltd. has applied for an exploration license on more than 73 square kilometers of land in New South Wales, Australia, that hosts several known nickel-cobalt resources.

The company said March 31 that the landholding, which is known as the Lake Innes project, has an indicated resource potentially amenable to open pit mining of 10.6 million tonnes containing 86,000 tonnes of nickel and 12,500 tonnes of cobalt.

Historic mining of hand-picked cobalt-rich ore has returned grades of up to 7% cobalt.

There is potential for on-site processing, according to Cazaly, with previous metallurgical testwork indicating greater than 80% recovery.