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Nickel Cobalt exploration and development company, Conico Limited (ASX: CNJ) has announced that there has been a marked enhancement in metal extraction in Mt Thirsty cobalt Nickel Project test work. The Mt Thirsty Project is 16 km northwest of Norseman, West Australia and is a 50:50 Joint Venture with partner Barra Resources Ltd (together called the Mt Thirsty Joint Venture).
The test work has come to its conclusion on with Reverse Circulation drill samples from 6 holes which were collected in November 2016. There was a significant improvement in metal extractions on the master composite returned from leach optimisation test work compared to those reported in the Scoping Study. Cobalt leach extractions have improved to 85% (typical) and as high as 88% and Nickel leach extractions have improved to 32% (typical) and as high as 37%. Initial neutralisation test work involved secondary leach reactions that target the goethite extract iron and aluminium in addition to manganese, cobalt, and nickel. The test work has indicated that with careful control of pH and additional reagent dosing, the iron and most of the aluminium can be precipitated ahead of the payable metals without co-precipitation.Â
QEMSCAN analysis was completed on the master composite sample. One specific observation from the QEMSCAN analysis that is relevant to the leaching optimisation is that 62% of the cobalt is present in manganese mineral (asbolane) which is readily leached with SO2. The remainder of the cobalt and most of the nickel is in the harder to leach goethite mineral. Lower nickel extractions are explained by 44% of the nickel is in the chlorite mineral which is not leached by the methods studied. An additional 22 leach optimisation tests have been completed to date at ALS laboratories in Balcatta, bringing the total for the PFS to 35 tests.
Commensurately, higher project revenues are expected to be available for minimal additional reagents and costs. Cobalt and nickel extractions were achieved on whole ore and therefore do not have to allow for additional losses from beneficiation. The price for cobalt metal has corrected over the last 12 months from a high of US$90,000/t in March 2018 to US$33,000/t till date. It has been due to short term supply exceeding demand as evident by LME warehouse levels which are now at their highest level in 7 years.
Bulk leach test work will now begin. Engineering of the processing plant and capital and operating cost estimating to a PFS level of accuracy at optimised conditions is now all set to commence which depends on funding approval by the JV, expected to be released in the current quarter.
On 31 January 2019, CNJ published its quarterly activities report ending 31 December 2018. During the quarter Mt Thirsty Cobalt Projectâs Leach optimisation test work was nearing completion. There was Positive land access, native title and community engagement. Resource upgrade to JORC 2012 was nearing completion. The Pre-Feasibility Study level engineering and capital estimation to begin in this upcoming quarter were on schedule.
The stock of the company settled flat at A$0.019 with the close of the market on 15 February 2019.
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