Broken Hill Prospecting Ltd (ASX:BPL) has confirmed that Cobalt Blue Holdings Ltd (ASX:COB) has earned a 70% beneficial interest in the Thackaringa Joint Venture (TJV) after completing technical and financial milestones under stage II earn-in.
Broken Hill now holds the balance of 30% beneficial interest and 100% of the legal title.
The joint venture partners are undertaking a bankable feasibility study (BFS) on the TJV, following up on the recent pre-feasibility study (PFS) which justifies proceeding towards commercial development.
READ: Broken Hill Prospecting confirms robust pre-feasibility results for Thackaringa Cobalt Project
The PFS confirmed that the Thackaringa project is of global significance as a sustainable, low-cost source of high purity cobalt sulphate for the battery revolution.
Broken Hill managing director and chief executive officer Trangie Johnston said: “BPL has unlocked substantial shareholder value from its Cobalt Blue spin out initiative in early 2017.
“More than $8 million has been directly invested in the world-class Thackaringa Cobalt Project, culminating in a positive PFS delivered to the market in early July 2018.
“BPL retains a significant direct interest in the Thackaringa project, and also holds long-term rights, including payment of $7.5 million cash, a royalty interest and rights to intellectual property developed by the Thackaringa Joint Venture.”
A significant drilling campaign will begin shortly at the TJV tenements with results to be progressively delivered culminating in a new resource model by end of Q1 2019.
Meanwhile, Broken Hill retains the sole rights to base and precious metals on the TJV tenements, where it is actively exploring for Broken Hill (lead-zinc-silver) style mineralisation, precious metals and industrial minerals.
The company has prioritised multiple prospects for further exploration.