Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) is making strong progress with bulk sample extraction and Demonstration Plant development to deliver large cobalt product samples from the Broken Hill Cobalt Project (BHCP) to potential partners in the global lithium-ion battery market.
This work entails the mining of a sample of 3,500-4,000 tonnes of ore from the project outside Broken Hill and the development of a Demonstration Plant in the far western New South Wales mining centre to process the ore.
At the mine site excavation of the box cut has been completed and development of the decline is well advanced while at the mine and plant installation and commissioning of key process equipment is progressing.
Ore production imminent
As a result of this progress, the company expects ore production and processing to commence shortly.
Cobalt Blue’s chief executive officer, Joe Kaderavek said: “Demonstration Plant construction is progressing strongly, with mining/concentration operations to begin shortly.
"We anticipate the Demonstration Plant will deliver over 3,000 kilograms of cobalt products from June-November 2022. In parallel, we have received better than expected demand for larger-scale samples globally.”
Two phases
COB’s Demonstration Plant will comprise two phases of operation. Firstly, mined ore will be crushed, milled and treated to produce a cobalt-pyrite concentrate at the Pyrite Hill site.
Secondly, the concentrate will then be trucked to the Demonstration Plant in Broken Hill for extraction and recovery of cobalt as Mixed Hydroxide Precipitate (MHP) and/or cobalt sulphate.
The company will mine 3,500–4,000 tonnes of ore from the Pyrite Hill deposit to support 20 weeks of continuous operation of the Demonstration Plant.
Bulk sample extraction
Pyrite Hill underground portal.
At the Pyrite Hill site, excavation of the box cut has been completed and development of the decline is well advanced.
The decline will extend about 80 metres and intersect the ore body at around 40 metres below surface. A total of 160 metres of development is expected to be completed to realise the targeted tonnage.
Ore extraction will begin shortly, with crushing, milling and concentration operations to begin subsequently.
Key equipment progress
Construction and installation of key equipment at the Pyrite Hill site is progressing as scheduled.
General site amenities have been established to support sustained on-site activities.
Gravity spiral circuit installed at the Pyrite Hill site.
The gravity concentrator circuit including gravity spirals have been installed at Pyrite Hill in readiness for commencement of ore processing. The multi-stage crushing plant is scheduled for mobilisation this month.
This comes as commissioning of milling and concentrator equipment in Broken Hill is nearing completion.
Expansion of the leach plant continued in the March quarter, augmenting hourly throughput capacity from 40 to 125 kilograms.
Equipment for discrete unit operations is now being installed including the oxygen and nitrogen plants, and following, the new large-scale kiln and sulphur recovery equipment.
Installation of oxygen plant at the Broken Hill plant site.
Market strategy
COB’s strategy is focused on maximising payable cobalt whilst participating in the strong growth of the lithium-ion battery market.
Unlike the traditional cobalt mining model, COB is an integrated refinery model capable of delivering first an intermediate Mixed Hydroxide product (MHP), which subsequently can be further refined into battery-grade cobalt sulphate.
BHCP MHP and cobalt sulphate process diagram.
Cobalt is a strategic metal in strong demand for new generation batteries, particularly lithium-ion batteries now being widely used in clean energy systems.