Broken Hill Prospecting Ltd (ASX:BPL) and Cobalt Blue Holdings Ltd (ASX:COB) have both been granted trading halts by the ASX this morning.
The two company's shares will remain halted pending the release of a Thackaringa resource upgrade presently being finalised with various third‐party consultants.
Thackaringa is a growing cobalt deposit
The world-class Thackaringa Cobalt Project in New South Wales has been capturing investors attention on a global scale thanks to a surging cobalt price.
The LME cobalt price is over US$84,000 a tonne currently, or 160% higher than where it began 2017.
The current JORC resource stands at 33.1 million tonnes of inferred resource at 833 ppm inferring ~27,000 tonnes of contained cobalt.
This would be worth over US$2.2 billion at spot market prices.
Pre-feasibility study to be complete after the resource upgrade
Cobalt Blue expects to complete the pre-feasibility study (PFS) following the resource upgrade by mid-year.
A bankable feasibility study will follow and this is scheduled for delivery in mid-2019.
READ: Cobalt Blue reaches new 12-month high on back of compelling cobalt story
Thackaringa is held in joint venture between Cobalt Blue and Broken Hill Prospecting.
The joint venture structure has Broken Hill holding 100% legal interest and 49% beneficial interest with Cobalt Blue holding the remaining 51% beneficial interest.
Cobalt Blue was spun out of Broken Hill to fully focus on the cobalt potential of Thackaringa.
Subject to earn in milestones, Cobalt Blue can increase its beneficial holding and ultimately earn the legal title to the project.