logo-loader

Cobalt Blue achieves high cobalt recoveries in tests of ore from Thackaringa project

Published: 00:27 05 Mar 2018 GMT

Cobalt sulphate crystals
The first (20% cobalt) cobalt sulphate crystals produced from the project near Broken Hill

Cobalt Blue Holdings Ltd (ASX:COB) tests have achieved high recoveries of cobalt from ore to leach solution from the Thackaringa project near Broken Hill in the far west of New South Wales.

Tests being carried out as part of a pre-feasibility study (PFS) have demonstrated total recovery of 88% cobalt from ore to leach solution.

Results will be used to conduct engineering studies and cost estimates for the PFS.

Andrew Tong, PFS manager, said: “The high recoveries augur well for the economic evaluation of the project, which will be completed in the PFS.”

Joe Kaderavek, chief executive officer, comments exclusively to Proactive Investors on recent test work results and the implications of producing first samples of battery focused cobalt.

Proactive Investors: What is the significance of the latest test work results?

Joe Kaderavek: Cobalt Blue is finalising test work as part of a pre-feasibility study (PFS), which includes concentrate, calcine, leach and product recovery into a battery ready cobalt sulphate product.

We are completing processing of composited ore (820 kilograms) and the results have supported robust recoveries, providing confidence in the overall PFS program, including:

1.    92% of cobalt recovery from ore into concentrate, deporting circa 20% mass to refinery.

2.    Greater than 95% conversion of the pyrite into pyrrhotite reliably achieved.

3.    97.5% elemental sulphur purity achieved.

4.    96% typical leach extraction of cobalt (concentrate to liquor) with optimum conditions now established.

The Cobalt Blue process is proving very efficient in processing Thackaringa’s unique cobalt in pyrite ore.

For example, combining 1 and 2 supports a target of 88% cobalt recovery from ore into a finalised cobalt sulphate product and we anticipate further improvement on this baseline.

Proactive Investors: Why are you focusing on high purity/quality cobalt sulphate crystals?

Joe Kaderavek: We are proud to have produced our first (20% cobalt) cobalt sulphate crystals, a strong testament to our technical focus.

Cobalt sulphate enables larger, more energy dense batteries such as required in renewable storage and electric vehicles.

Our focus is to target this segment as it grows by more than 300% in the coming decade.

Proactive Investors: Your current commercial travels span Japan, Korea and China. What are your objectives?

Joe Kaderavek: Globally, only a handful of emerging cobalt developers have ever produced a 20% cobalt sulphate crystal and this demonstration of expertise is opening doors with Tier 1 battery makers.

For Cobalt Blue, the focus is on battery grade cobalt in the 2020s and our choice of partner is very important.

Our vision is to achieve two important outcomes:

1.    Extract the strongest margins from our cobalt, and

2.    Minimise the risk of technological obsolescence. One thing is certain, today’s standard will change, and possibly quite radically, into the future as large-scale energy storage changes our lives.

Proactive Investors: Can you elaborate on the Mine to Battery Supply Strategy?

Thackaringa ore is somewhat different as cobalt and sulphur occur naturally with the ore which is clean of deleterious elements.

A traditional cobalt mine sells a concentrate product into an established refinery chain and receives circa 30% of the cobalt price in payment.

Our ‘mine to battery’ strategy, however, focuses on delivering a high purity CoSO4 crystal directly into battery production, achieving a premium to the cobalt price.

This has profound margin and cashflow implications for our business.

Investors should think of Thackaringa as a world-class integrated cobalt mine/refinery.

Proactive Investors: Finally, what key milestone news flow should investors look out for during 2018?

Joe Kaderavek: We will be releasing our upgraded resource estimate for Thackaringa shortly and investors can then expect a PFS to be completed by mid-year.

We are very excited to be delivering the project PFS, as it will showcase the size, longevity and value of the world-class Thackaringa cobalt project.

Key Project Milestones - PFS mid-2018 and bankable feasibility study (BFS) mid-2019.

Proactive Investors: Thankyou Joe.

Cobalt Blue 'well on its way to signing 10 global sample partners' for its...

Cobalt Blue Holdings Ltd's (ASX:COB) Joe Kaderavek updates on its 100%-owned Broken Hill cobalt project (BHCP) in Australia. He says they're targeting 4,000 tonnes in production of cobalt as either a hydroxide or a battery-ready product. ''The product will make around 80% of its revenue...

on 26/5/20