Cobalt Blue Holdings Ltd has begun its Scoping Study after it recently secured a 51% beneficial interest in the Halls Creek Project in Western Australia through an earn-in agreement with AuKing Mining Ltd.
The company has proposed a corporate name change to Core Blue Minerals Ltd, aligning with its broader diversification strategy on the back of the agreement.
The Halls Creek Project is a large-scale polymetallic opportunity, prospective for copper, lead, zinc, silver and gold, with notable cobalt potential.
COB states that the agreement will enable the company to apply its metallurgical, engineering and project development expertise to a broader range of commodities, supporting the expansion and diversification of its asset portfolio.
The Halls Creek Project comprises two key deposits with existing Mineral Resource estimates, collectively containing 89,000 tonnes (t) copper (Cu), 69,000t lead (Pb), 326,000t zinc (Zn), 9.2 million ounces (Moz) silver (Ag), and 45,000 ounces (oz) gold (Au).
The Sandiego deposit hosts 4.1 million tonnes (Mt) of resources—3.7Mt Indicated and 0.4Mt Inferred—grading 1.4% Cu, 0.4% Pb, 4.2% Zn and 25 grams per tonne (g/t) Ag, equating to 56,000t Cu, 18,000t Pb, 175,000t Zn, 3.3Moz Ag, and 25,000oz Au.
The Onedin deposit comprises 4.8Mt of Indicated Resources grading 0.7% Cu, 1.1% Pb, 3.1% Zn and 38g/t Ag, for 33,000t Cu, 51,000t Pb, 151,000t Zn, 5.9Moz Ag and 20,000oz Au.
Following a comprehensive desktop review, Cobalt Blue has outlined development options to be explored through a Scoping Study targeted for completion by June 2025. The review included historical metallurgical testwork which confirmed high recoveries across target metals.
The company is also actively evaluating opportunities to expand its resource base, which may support an increase in the overall scale or operating life of the Project.
Geological modelling completed by the previous owners to support the Sandiego and Onedin Mineral Resource estimates has significantly enhanced the understanding of the structural controls influencing mineralisation. This improved geological insight indicates strong potential for high-grade extensions or repetitions within favourable host rocks and structures, both near the main deposits and throughout the broader tenement area.
COB’s portfolio comprises a compelling mix of assets across strategic commodities critical to the global economy.
Dual stream processing
Cobalt Blue plans to develop a dual-stream processing approach, comprising acid leaching (heap leach) for oxide and transitional mineralisation, and flotation for sulphide material. Mine scheduling will be based on a proposed plant throughput of 700,000–800,000 tonnes per annum (tpa).
Preferred process flowsheet for oxide/transition mineralisation.
Preferred process flowsheet for sulphide mineralisation.
The company retains the right, though not the obligation, to increase its stake to 75% by meeting specified expenditure milestones.
The company is also advancing the Kwinana Cobalt Refinery towards a Final Investment Decision (FID), with 80% of the detailed plant engineering now complete. The company is progressing through the final stages of planning, with key regulatory milestones underway.
Permitting for the project has moved beyond the public consultation phase and is currently under assessment by the Western Australian Department of Water and Environmental Regulation.
As part of broader engagement efforts, Cobalt Blue recently hosted representatives from potential project partner Iwatani Corporation at the Broken Hill Technology Development Centre in early March, providing an opportunity to demonstrate the company’s processing capabilities and strategic direction.
$20M in exploration: COB’s next big move at Halls Creek
The Sandiego and Onedin deposits located at Halls Creek, have previously undergone economic evaluations, which COB has now reviewed in detail. The review identified options for commercial development that will be examined further through the Scoping Study. This Study will build on historical exploration work valued at over A$20 million conducted by previous operators.
The Scoping Study will be managed by COB’s internal technical team, with the support of external consultants for specific areas. It is expected to deliver a preliminary economic assessment of the project, with completion targeted for June 2025.
COB states that acquiring Halls Creek aligns with its strategic objectives for two primary reasons: potential for near-term cash flow and enhanced commodity cycle resilience. The project contains multiple metals—copper, zinc, lead, silver, and gold—diversifying COB’s asset base and enabling adaptability in fluctuating markets.
The company also referenced a recent 60% rebound in cobalt prices due to short-term supply constraints, emphasising cobalt’s cyclical nature. COB noted that while future price movements remain uncertain, demand trends remain strong and the company is well positioned to benefit from a market recovery.
Refinery financing progresses with Iwatani
Cobalt Blue and Iwatani Corporation are advancing towards a final financing decision for the planned Refinery, with key workstreams continuing across technical, regulatory and commercial fronts.
Approximately 80% of the detailed plant engineering has now been completed in partnership with Tetra Tech. Meanwhile, the Works Approval permit application is under assessment by the Western Australian Department of Water and Environmental Regulation, following the recent conclusion of the public consultation period.
Offtake discussions are ongoing under commercial-in-confidence agreements, with cobalt sulphate samples produced on request at the Broken Hill Technology Centre to support negotiations.
COB is also engaging with export credit agencies, commercial banks and potential investors as part of its broader funding strategy.
In support of the collaborative partnership, Iwatani representatives visited the Broken Hill Technology Centre in March to participate in a technical workshop.