Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) has further de-risked the Broken Hill Cobalt Project (BHCP) in Far West New South Wales with an updated mineral resource estimate that incorporates nickel.
The global mineral resource estimate now comprises 118 million tonnes at 859 ppm cobalt-equivalent (687 ppm cobalt, 7.6% sulphur and 133 ppm nickel) for 81,100 tonnes of contained cobalt at a 275 ppm cobalt-equivalent cut-off.
Significantly, measured and indicated resources make up approximately 65% of the global mineral resource.
Shares higher
The update takes into account base metals, some of which COB believes have the potential to be converted into an ore reserve if sufficient economic grade and quantities exist.
Investors have welcomed the news, driving shares up 7.58% to A$0.355 and since the market close on August 23, shares have climbed from A$0.235 while the company’s market cap pre-open was approximately A$100 million.
Mineral resource estimates for the BHCP deposits at a 275 ppm cobalt equivalent cut-off detailed by mineral resource classification.
Potential nickel contribution
This revised mineral resource estimate was undertaken to further advance a value engineering study examining the potential contribution of nickel to the BHCP.
It was calculated using inputs derived from the 2018 PFS and 2020 Project Update which have also resulted in the cut-off grade being revised.
The engineering study considered the recovery of nickel into the Mixed Hydroxide Product (MHP) where metallurgical test-work has produced an MHP containing 7% nickel and 38% cobalt.
Changes from 2020 estimate
Changes from the 2002 mineral resource estimate can be attributed to:
Refinement of mineralisation and waste domains
The mineralisation and waste domains were updated to provide further geological constraint of the additional elements incorporated into the mineral resource estimate not only including nickel but sodium, potassium, manganese, aluminium, copper and zinc as well.
Cut-off optimisation
The revised cut-off grade considers modifying factors guided by the 2018 PFS and subsequent 2020 Project Update, and now incorporates revenue streams from elemental sulphur and nickel in addition to cobalt.
BHCP location approximately 25 kilometres southwest of Broken Hill.
Cobalt Blue is an exploration and project development company progressing work programs aimed at advancing the Broken Hill Cobalt Project with its ambitious goals subject to funding availability.
Cobalt is a strategic metal in strong demand for new generation batteries, particularly lithium-ion batteries now being widely used in clean energy systems.