Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) has executed a Memorandum of Understanding (MoU) with the State of Queensland to assess opportunities for the recovery of cobalt and any co-existing base and precious metals from mine waste.
This will see COB undertake test-work to evaluate minerals processing options, including the application of its proprietary minerals processing technology, to recover target metals from feedstocks nominated and provided by the Queensland Department of Resources.
Executing the MoU recognises potential synergies between Queensland’s New Economy Minerals Initiative (NEMI) and COB’s Cobalt in Waste Streams Project.
“Important step forward”
CEO Joe Kaderavek said: “The MOU with the Queensland Department of Resources is an important step forward for COB’s Waste Streams Project and for Queensland’s 'The New Economy Minerals Initiative'.
"COB looks forward to working with the Department of Resources and The University of Queensland on this important initiative.”
In November 2019, the Queensland Government announced a $13 million funding package to advance discovery and development of ‘new economy minerals’ within the state.
Secondary Prospectivity Project
The NEMI considers a number of targeted projects including a Secondary Prospectivity Project examining the potential of mine waste including tailings, stockpiles and waste dumps for critical minerals, and is conducted in collaboration with researchers from the Sustainable Minerals Institute, The University of Queensland (UQ).
COB’s new MoU with Queensland forms part of the Secondary Prospectivity Project.
Synergies with COB project
The company’s Cobalt in Waste Streams Project was launched on March 2021 and initial work has focused on two areas:
1 - Desktop reviews of Australian sulphide waste streams potentially containing cobalt, copper and gold, with an initial focus on Queensland’s Northwest Minerals Province (Mt Isa/Cloncurry), where COB’s research has identified substantial cobalt in tailings. The objective includes a prioritised set of opportunity targets for deeper investigation.
To date, COB has conducted successful test-work at the Millennium Project (cobalt/cobalt/gold) (near Cloncurry), providing confidence that its processing technology can be effectively applied to targeted mineralisation from the region.
2 - Design, procurement and installation of bench-scale test equipment to complement the existing Pilot Plant facilities at Broken Hill. This will enable COB to complete the majority of test-work in-house.
MoU intentions
In recognition of the potential synergies between Queensland’s NEMI and COB’s Cobalt in Waste Streams Project, discussions with the Department of Resources have culminated in the execution of an MoU.
If critical minerals are identified in the Secondary Prospectivity Project, sites could be re-packaged and offered back to market, perhaps with incentives or collaborative arrangements to address any legacy environmental issues.
Workstreams
This project comprises three primary workstreams.
Stream 3 considers the evaluation of minerals processing options targeting the economic recovery of critical minerals from sources of mine waste. Under the MoU, COB will undertake metallurgical test-work for Stream 3.
The MoU provides:
- COB will undertake test-work to evaluate minerals processing options, including though not limited to the application of its proprietary minerals processing technology to recover target metals from feedstocks nominated and provided by the department. There is no guarantee that feedstocks will be provided by the department.
- On completion of any test-work, COB will provide the department with a report detailing the work and results for each site.
- COB will retain sole ownership of any new intellectual property created during test-work subject to the MOU.
- The Department will provide COB with reports on each site detailing the analysis and results of work carried out under the Secondary Prospectivity Project with UQ.
Test-work agreements
The scope of individual test-work program(s) are to be governed by separate agreements. These agreements are to include:
- Test-work scope having regard to the characteristics (including though not limited to the mineralogical, geochemical and physical properties) of the feed material;
- The responsibilities of both parties in executing the test-work program including matters of sample provision, reporting and interpretation of results;
- Reporting requirements including agreement of the presentation and attribution of results by either party; and
- Rights to results including any period of confidentiality or exclusive use and the intended public release of results by the parties, having regard to any agreement the Department may have established for acquisition of the feed material sample.
Initial samples for the test-work are expected to be received in the first quarter of 2022.
This MoU is expected to provide COB with the potential to accelerate the Cobalt in Waste Streams Project by leveraging the extensive work completed by the Department and UQ to date.
It also stands to advance the qualification and potential quantification of mine waste opportunities in Queensland.