Cobalt Blue Holdings Limited (ASX: COB) announced the serving of withdrawal notice by Broken Hill Prospecting Limited (ASX: BPL) from Thackaringa Joint Venture. COB believed BPLâs Joint Venture interest had fallen to below 5%, the Minimum Interest specified in the Exploration Farmin Joint Venture Agreement. BPL is now deemed to have withdrawn from the Joint Venture and must surrender absolutely its Joint Venture Interest to COB, execute and deliver all documents required to complete the transfer to COB of its Joint Venture Interest. As a result, COB would hold a 100% beneficial and legal interest in the Thackaringa Cobalt Project once BPL transfers its Joint Venture interest to COB.
On 5 February 2019, COB notified the results from its resource definition drilling program at Pyrite Hill.
The results from Drilling includes:
Infill Drilling (ID)
The campaign concentrated on Measured Mineral Resources via the rise of geographical confidence and data density by ID. The infill work concentrated on the upper extent of the Pyrite Hill deposit which stretched beyond 1.2km with g strike and back then drill tested as continuing to circa 300m down dip. The encouraging results of the work strengthened the validity of the geological model.
Mineral Resource Growth (MRG)
The downward slope of the extension of the Pyrite Hill deposit was recognized as a major opportunity for MRG possibility during the Study. The campaign enabled the wrapping of an early stage of drilling to test the target with holes intersecting mineralisation around 180â280m beneath the surface and the mineralization remaining open at depth.
On 30 January 2019, COB published its quarterly report ending 31 December 2018. The strategic rationale for the Thackaringa Cobalt Project was founded upon four tenets as follows:
Cobalt â the opportunity
Cobalt is a key metal required for both metallurgical and chemical industries. Cobalt is divided into 2 economy drivers- The new and Old. The new driver includes battery minerals and superalloys. Battery materials will continue to dominate global consumption and drive demand over the next 10 years+.
Elemental Sulphur vs Sulphuric Acid
The mineral resource is composed of pyrite and silica/feldspars. Cobalt is substituted inside the pyrite mineral lattice and is not present as a discrete mineral. Minerals processing options are centred on recovering pyrite from the ore, and subsequent downstream treatment of the pyrite concentrate.
The Primary producer of cobalt
Typically, cobalt was recovered as a by-product from copper or nickel operations. In contrast, the project had been aiming to be a primary producer of cobalt, as there are only minor amounts of base metals in the ore.
Battery ready cobalt product has a maximum margin over the project life cycle
The Project strategy is an integrated mine/refinery concept. COB is targeting the battery sector and generates a battery ready cobalt product.
The Company continued to take steps to support the funding of its future exploration and project development activities. A placement of 8,435,000 shares at $0.20, which raised $1,687,000, was completed on 12 December 2018. The placement capacity would be refreshed, and an additional placement will be put before shareholders to approve at a General Meeting planned for early March 2019. It will give COB the flexibility to further its various work programmes including bulk test work, mining, environmental and engineering studies, as well as exploration, as results from current work and its financial resources dictate.
The COB stock of last traded at A$0.145 (as at 18 February 2019), down by 6.452% or 0.010 points. Even, BPL crashed by 5%, settling the dayâs trade at A$0.019.
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