Shares in Kuniko Ltd (ASX: KNI) are surging 26% higher today on the back of a company announcement.
The company reported findings from downhole geophysics surveys conducted at its Skuterud Cobalt Project in Norway.
At the time of writing, the Kuniko share price is resting at $1.44 apiece. It is rangebound after an initial spike from the open and trading volume is already at 64% of its 4-week average.
What did Kuniko announce?
The company says that findings from the most recent surveys held at Skuterud have yielded positive results.
"Specialist consultancy firm, GeoVista AB, has captured and interpreted data acquired from a downhole geophysics survey campaign targeting historic drill holes by Berkut Minerals Ltd., enabling optimisation of drill plans," it said.
Survey findings confirm the presence of 'conductors' that were previously identified by airborne studies already completed by Kuniko, it added.
Results say these conductors are "partially or fully off-hole", meaning they've actually been missed – or only partially intersected – by previous drilling attempts from the company.
Speaking on the announcement, CEO Antony Beckmand was pleased with the latest results. He went on to provide a summary of Kuniko's next moves:
With drilling set to launch in the next weeks, these latest borehole geophysics results provide further signs of the potential and opportunity at the Skuterud Cobalt Project. The downhole geophysics has confirmed the presence of the conductors we originally identified at the Middagshvile target using airborne electromagnetic and magnetic surveys in 2021, while downhole geophysics modelling identifies the conductors aligning with and corresponding to mineralization observed in the available historic core assays.
We have done our geological due diligence on the Skuterud targets, putting Kuniko in a prime position of being well prepared and having solid reasons to be confident and enthusiastic about prospects for unveiling cobalt mineralisation with our upcoming drill campaign.
With a prevailing and forecast undersupply for this valuable mineral, where current sources of supply are heavily reliant on Democratic Republic of Congo, Russia and China, Kuniko is firmly focussed on the rapid development of Skuterud project to bridge the supply chain gap with ethically sourced, responsibly developed, net zero-carbon cobalt.
Kuniko shares have soared in absolute return since first emerging on the ASX in August last year, but the share price has glided down off a high of $$3.23.
