Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) last week confirmed it had secured a three-year extension to major project status for the Broken Hill Cobalt Project. Dr Andrew Tong spoke with Proactive about the latest developments.
Highlights
- Cobalt Blue has secured a three-year extension to major project status for the Broken Hill Cobalt Project.
- The extension gives the company more time to move the project to a financing decision while cobalt prices remain low.
- Dr Tong said the project will produce cobalt independently from copper and nickel industries, providing a new supply chain.
- A supply agreement was signed for cobalt hydroxide feedstock for the proposed Kwinana refinery.
- The Broken Hill Cobalt Project could serve as a standalone non-Chinese cobalt source.
- Cobalt Blue completed a scoping study for the Halls Creek Copper Zinc Project acquired in February.
- The Halls Creek Project is planned as a ten-year development with the first five years of open cut mining and the latter five underground.
- Production targets include 5,000 tonnes of copper and 15,000 tonnes of zinc sulfate.
- The company aims to reach 75% ownership and advance the project to feasibility within three to four years.
Three-year extension
Cobalt Blue's three-year extension provides more time to advance the project to a financing decision. It noted that cobalt prices had fallen over the last two to three years, reducing investment interest.
Dr Tong highlighted that Broken Hill is positioned to produce cobalt independently of copper and nickel industries. He said most global cobalt comes as a byproduct from copper mining in the Democratic Republic of Congo. The company told investors that it recently signed a supply agreement to source cobalt hydroxide for its proposed refinery in Kwinana.
Halls Creek progress
COB reported on progress at the Halls Creek Copper Zinc Project. It purchased shares in the project in February. It produced a scoping study outlining a ten-year mine life.
Dr Tong said the first five years are planned as open cut mining with solvent extraction and electro mining. This stage is expected to produce 5,000 tonnes of copper metal and 15,000 tonnes of zinc sulfate. The second half of the project is planned as underground mining for copper and zinc concentrates.
The exploration could extend the project further. The company said it aims to achieve 75 percent ownership and bring the project to feasibility study within three to four years.