Cobalt Blue Holdings Ltd (ASX:COB) (OTCMKTS:CBBHF) (FRA:COH) is attracting interest from potential customers and partners as a result of the Global Cobalt Sample Program producing commercial Mixed Hydroxide Product (MHP) sourced from the Broken Hill Cobalt Project (BHCP).
This product, along with cobalt sulphate, is being produced from the company’s Pilot Plant in Broken Hill in Far West New South Wales for the sample program, which is expected to conclude early this quarter.
Catalyst for dialogue
The program is serving as a catalyst to begin commercial dialogue and the company recently hosted a commercial partner visit with further interaction expected in the second half of the year as investor/partner due diligence proceeds.
COB will not provide further commentary as to the progress of its discussions until a commercial milestone has been reached.
Reliability improvements
More than 1,000 operating hours have been logged to date in the Pilot Plant and numerous areas of reliability improvements have been identified.
These are largely focused on equipment suitability and operational procedures and will assist COB in de-risking the future Demonstration Plant, which is aiming to operate on a continuous 24/7 basis.
Demonstration Plant operations are designed to treat up to 3,000-4,000 tonnes of ore and planning is well advanced for extraction of this ore from the BHCP tenements in the second half of this year.
The quantity of material is 30 to 40 times larger than the amount processed in the Pilot Plant.
Demonstration Plant designs
COB is continuing design work and equipment selection for the Demonstration Plant with the majority of the pilot plant equipment to be re-used for the concentrate, leaching and product recovery circuits.
Based on successful research and development, supported by an Australian Government CRC-P grant, a kiln is being purchased for the onsite pyrolysis of pyrite concentrate.
Commissioning of the larger plant is expected to start by the end of the year and steady-state operations are anticipated during the first quarter of 2022.
Qualification as a supplier to global battery makers will begin during the second half of this year, even before large-scale samples are despatched.
Further work
COB has begun the process of appointing an independent feasibility study engineering group and expects to make an appointment by the fourth quarter of 2021.
Development work for the BHCP in parallel with the company’s Cobalt in Waste Streams Project continues.
This progress comes as interest in sourcing ethical and dependable cobalt from non-African sources is building appreciably with the Broken Hill Cobalt Project notable for its primary cobalt focus, large scale and long life.
Cobalt is a strategic metal in strong demand for new generation batteries, particularly lithium-ion batteries now being widely used in clean energy systems.