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Cobalt Blue talks globally significant drilling program in Proactive Q&A Sessions™

Published: 22:30 28 Mar 2017 BST

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Joe Kaderavek, chief executive officer, Cobalt Blue Holdings

Cobalt Blue (ASX:COB) is a "pure play" cobalt company focused on the Thackaringa Project, located in a world-class mining district near Broken Hill.

The Thackaringa deposit has unique characteristics compared to other deposits around the globe, and to tell us more, we welcome back to Proactive Q&A Sessions™ chief executive officer, Joe Kaderavek.


PROACTIVE INVESTORS: Welcome Joe.


Cobalt Blue recently listed with $9.5 million cash and an accelerated 3 year feasibility program. How is that different to other cobalt explorers?

CEO: Put simply, Cobalt Blue is undertaking one of the largest drilling campaigns amongst cobalt explorers globally.

We are delivering over 8,000 metres of diamond and reverse circulation drilling in conjunction with a Scoping Study due by mid-year.

Looking forward we will be delivering a Preliminary Feasibility Study by mid-2018 and a full bankable feasibility study by mid-2019.



The Thackaringa Cobalt Project is primary cobalt, one of only 2% globally. Can you explain what that means and why is that important?

CEO: Looking at it the other way, 98% of the world’s cobalt is a by-product of either copper or nickel, with cobalt typically representing less than 30% of the revenue for the business.

These mines are beholden to such volatile base metals to guide production targets and ultimately stay in business.

There are numerous examples of large scale nickel/cobalt mines that are unprofitable even while the cobalt price remains strong.

In contrast, the Thackaringa Cobalt Project will generate >80% of its revenue from cobalt.

We have one focus, to develop a world class operation, based on cobalt market fundamentals.


OK, so how can you compete with other polymetallic mines?

CEO: Investors should question the costs of mining and upgrading the cobalt ore, and examine the EBITDA/t ore rather than simply the revenue line.

Thackaringa is a clean sulphide orebody that will utilise the same crush, grind and floatation processes first developed 100 years ago in Broken Hill, delivering high cobalt recovery rates.

Located just 23 kilometres from Broken Hill, a large town complete with skilled mining people, coupled with availability of mains power (via 220kVa line), town water, an interstate highway and freight railway line passing within 4 kilometres and 1 kilometre of site respectively, all contribute to keep costs to a fraction of an equivalent remote minesite.

We will have more positive things to say on this after future technical studies.


How do these results, just released, compare to expectations?

Chairman: Robert Biancardi feels this is one of the world’s largest and developed resources.

Chairman: My board is extremely pleased by consistent and encouraging high grade cobalt results from drilling over the last three months.

Chairman: We are looking forward to keeping the market informed about levels of resource volumes over the next two months.

CEO: As I have said in our release, Cobalt Blue's drilling exceeds grade expectations at Thackaringa, with broad intercepts of high grade mineralisation recorded, particularly at the Railway Deposit.

The assays results were so positive that the drilling program has been tailored to explore the extent of the higher grade mineralisation in the trend.

These are, no doubt, exciting results.

Overall, investors can expect another two or more assay results prior to mid-year, coupled with the delivery of our upgraded resource statement.

 

PROACTIVE INVESTORS: Thank-you Joe and Rob.

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