The Cobalt Blue (ASX:COB) share price is rocketing 13% today. Here’s why

The Cobalt Blue (ASX: COB) share price is on a tear today, up 13% in early afternoon trading. We take a look at what’s driving shares higher.

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The Cobalt Blue Holdings Ltd (ASX: COB) share price is on a tear today. Shares are up 13% in early afternoon trading.

Investor interest appears to have turned to Cobalt Blue following an update on the company’s Broken Hill Cobalt Project in New South Wales.

What progress did Cobalt Blue report at Broken Hill?

In this morning’s ASX release, Cobalt Blue revealed that its wholly-owned subsidiary, Broken Hill Cobalt Project Pty Ltd, had received notice of its proposed grant of exploration licence application.

The tenement application covers some 67sq km and will increase Cobalt Blue’s exploration area in the Broken Hill region by approximately 70%.

The company said its advanced exploration targeting bolsters the long-term exploration opportunities at Broken Hill.

Commenting on the project, Cobalt Blue CEO Joe Kaderavek said:

We are continuing to assess opportunities for further acquisition across the Curnamona Province. With the current mineral resource inventory supporting a 17-year operation, further consolidation in the region will secure long-term exploration potential.

The company said it will prioritise the continued consolidation of ground within the Broken Hill region. This consolidation supports its long-term exploration strategy.

So far the company has identified numerous exploration targets, which it reports could enable it to sustain the mineral resource growth it’s achieved since 2016. Several targets identified by the 2017 VTEM-Max survey have not been tested yet. Two of these areas remain a high priority for further exploration: Pyrite Hill South and Railway South.

Cobalt Blue share price and company snapshot…

Cobalt Blue Holdings is a mineral exploration and project development company with a focus on cobalt. The company predicts it will see strong demand for cobalt – used in lithium-ion batteries – as the world transitions away from fossil fuels.

The company first traded on the ASX in February 2017 and now has a $79 million market capitalisation.

With today’s intraday gains taken into account, the Cobalt Blue share price is up 56.5% in 2021. By comparison, the All Ordinaries Index (ASX: XAO) is up 3.2% this calendar year.

Over the past 12 months, Cobalt Blue shares are up 177%. And investors who bought at the 24 March lows are sitting on a share price gain of 350%.

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