Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) earlier this week outlined progress across its Kwinana cobalt refinery and Halls Creek copper-zinc-silver project. Chief executive Dr Andrew Tong spoke with Proactive about the company's latest milestones.
- Cobalt Blue is progressing two main projects: the Kwinana cobalt refinery and the Halls Creek copper-zinc-silver project.
- Glencore feedstock agreement secured for cobalt hydroxide supply to the refinery.
- Halls Creek scoping study completed, showing attractive economics.
- Additional 3.6 million ounces of silver identified in the heap leach material, valued at over A$150 million.
- Potential for increased IRR and return on capital from silver recovery.
- Cobalt identified in the San Diego deposit, adding potential revenue streams.
- Three near-term exploration targets identified to grow the Halls Creek resource.
- Plans for infill drilling at San Diego North to confirm resource expansion.
- Company expects another strong two quarters as 2025 closes out.
Key step towards FID
Cobalt Blue has secured a feedstock agreement with Glencore for cobalt hydroxide supply to the refinery. It said this is a key step towards a final investment decision (FID).
For Halls Creek, the company has completed a scoping study. The study modelled an open pit heap leach project over the first five years, focusing on copper and zinc production. The company said the study showed attractive economics.
A subsequent review identified 3.60 million ounces of silver in the heap material. The company said this has an in-situ value of more than 150.00 million Australian dollars. It said this may significantly improve the project’s internal rate of return and capital efficiency.
Cobalt present
The company added that cobalt is present in the San Diego deposit. It is assessing how minor metals such as cobalt and silver could contribute to overall project economics.
Cobalt Blue also highlighted three near-term exploration targets at Horse Creek. It said drilling at San Diego North could confirm extensions to the existing resource. The company said this could expand the project into a larger-scale operation.
Tong said the company expects strong activity in the next two quarters as it advances both projects.