Cobalt Blue Holdings Ltd’s (ASX:COB) dream of a 20-year world-scale operation based on the Broken Hill Cobalt Project and incorporating the company’s treatment technology is in sight, according to chairman Rob Biancardi.
He told shareholders at the company’s AGM today that the future for cobalt, the project and the technology remained bright with the rapidly evolving battery market demanding cobalt as a key precursor ingredient.
“Our view remains, that despite the current lull in the cobalt price, the business will continue to progress the core Broken Hill Cobalt Project as well as commercialisation of our intellectual property.
“Marking time, whilst temporary conditions are challenging, is simply not in our DNA.”
Demand for higher-grade cobalt
Biancardi said the optimism was enhanced, not discouraged, by the trend for battery makers to ‘thrift’ cobalt or use less of the metal to make each battery.
This transition required a higher-grade cobalt product, which remained a key focus for Cobalt Blue.
“Australia remains well endowed with cobalt resources but produces only 6% of global supply,” he said.
“There is little doubt that we have plenty of potential, particularly considering our stable jurisdiction and ethical credentials.
“Cobalt Blue looks forward to closing this cobalt gap.”
“Steady” development
The chairman outlined the company’s progress in the past 12 months, which he described as “a steady period of development for the business” with important steps taken in progressing the Broken Hill project.
In his address, he said: “A major drilling campaign of approximately 10,000 metres was conducted over Q4 2018 and finalised in January.
“The global mineral resource estimate now comprises 111 million tonnes at 889ppm cobalt-equivalent, containing just under 80,000 tonnes of cobalt.
“This new resource will be taken forward and converted to a reserve over the course of 2020.”
Regarding test work, he said: “To advance our process understanding we produced 45 tonnes of concentrate from Broken Hill ore, testing that confirmed our earlier positive results.
“This significant campaign included over 1,500 individual core lengths in order to provide a representative sample of ore.
New sulphur partner
“In June, we signed Mitsubishi as a partner to market trial elemental sulphur that will be produced by our process.
“Mitsubishi is a world-class partner and adds to LG International who became our cobalt first-mover partner in 2018.”
Biancardi said that the company had applied for, and was granted, additional exploration land and this was announced in August.
“The addition of new land will ultimately add to the longevity and economic value of the Broken Hill refinery complex.”
Test work agreements
He said: “Commercially, Cobalt Blue signed test work agreements with Global Energy Metals for their Millennium project, which has provided an insight into treating Queensland-based cobalt resources. Our research has shown significant potential to treat cobalt ores from the Mount Isa/Cloncurry district.
“In September we signed a further agreement with OZ Minerals Limited (ASX:OZL) for their Carrapateena copper/gold mine currently undergoing commissioning.
“We look forward to seeing where such cooperation will take our business.”
The chairman also told shareholders that the company had joined the Future Battery Industries - Cooperative Research Centre, a Commonwealth Government initiative.
In this CRC the company shared “a common focus on developing an Australian battery industry with a range of primary producers of lithium, cobalt and nickel”.