Cobalt Blue Holdings Ltd (ASX:COB) has retained its 51% beneficial ownership in the Thackaringa Cobalt Project Joint Venture after completing stage I earn-in requirements.
JV partner Broken Hill Prospecting Ltd (ASX:BPL) has advised of its satisfactory assessment of the stage I requirements.
These included completion of a major resource upgrade at the project, which was achieved a month ago.
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Cobalt Blue’s chairman Rob Biancardi said: “COB is delighted to have achieved our stage I milestone.
“We look forward to working with our JV partner, Broken Hill Prospecting, in progressing the world-class Thackaringa Cobalt Project.”
The project has a JORC-compliant resource of 72 million tonnes at 852 ppm cobalt, 9.3% sulphur and 10% iron for 61,500 tonnes of contained cobalt.
COB and BPL have entered into a farm-in joint venture agreement in respect of the Thackaringa Cobalt Project to finance and undertake exploration.
Until Cobalt Blue’s farm-in obligations have been satisfied, its interest in the tenements at Thackaringa is beneficial.
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Under the terms of the agreement, Cobalt Blue’s beneficial interest will be increased in tranches on satisfaction of certain exploration and development milestones.
When Cobalt Blue has completed its farm-in obligations, it will become the registered holder of the Thackaringa project tenements.
Broken Hill Prospecting remains the registered holder of the tenements until the farm-in is complete.
The next milestone which will take COB’s beneficial interest to 70% is the completion of a pre-feasibility study by June 30, 2018.
Steady progress is being made in this regard and results to date have been positive.