The company also pointed out it considered cobalt retained strong fundamentals as it acknowledged the price had fallen 60% over the past year.

Mawson said it was building a high-grade core at Raja, part of its flagship Rajapalot project, extending the zone by 70m to 320m down plunge.

Its deepest high-grade drill hole reported from Raja to date intersected 21m at 4g/t gold-equivalent from 417m.

Mawson said to ensure consistency, it had used the same gold-equivalent value as was used in its Rajapalot's maiden resource, announced in December of an inferred constrained 424,000 ounces at 3.1g/t Au-eq, assuming metal prices of US$1,250/oz for gold and $30 a pound for cobalt.

It said current spot prices were about $1,400/oz and $13.40/lb respectively, and said it would review the prices used once all data from the current drill programme was released.

The company said the cobalt price had fallen mainly due to increase in supply from mines, many artisanal, in the Democratic Republic of Congo.

"Mawson considers cobalt retains strong fundamentals with demand remaining robust as the electric mobility industry continues to grow and, a long-term price of $20-$30/lb cobalt (and $1,250/oz gold) is therefore reasonable," it said.

It had C$4.88 million (US$3.7 million) in working capital at the end of February and gained access to research and development funding in March through Finland's BATCircle consortium. 

Its shares have slid from 36c in September to as low as 17c.

They gained 1c or 5.88% yesterday to close at 18c, capitalising it at $25.6 million (US$19.5 million).