Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF), the mining and mineral processing company which is focused on the development of the Broken Hill Cobalt Project in New South Wales, has now completed the processing of 4,200 tonnes of ore, yielding 680 tonnes of concentrate from the Concentrator Circuit.
The company said the grades of gravity circuit concentrate consistently averaged 4400 parts per million (ppm) cobalt during operations and the combined recovery for the concentrator circuit was typically 95%, exceeding the recoveries obtained in the 2020 Project Update (PFS level study) of 90%.
COB is expected to release its first large scale Mixed Hydroxide Precipitate (MHP) in December, with continuous operation of the leach and MHP circuits planned from January.
Further to this, the demonstration plant operations are on track to deliver the initial ‘process plant design criteria’ for the definitive feasibility study (DFS) by the end of Q1 2023.
“This is large scale and technically substantial proof of our concentration operation. Converting over 4,000 tonnes of variable low to high grade ore to a consistent high-grade concentrate is a major project enabling step.
“Put another way, our refinery is 20% of the size of the mine and will see an average ~4,400 ppm concentrate for the life of operations. Concentrate recoveries of up to 95% well exceed our pre-feasibility study baseline,” Cobalt Blue CEO Joe Kaderavek said.
Concentrator Circuit operations complete
The Concentrator Circuit completed operations supporting the DFS.
A total of 4,200 tonnes of ore has been processed to produce 680 tonnes of wet concentrate (typical moisture 5 – 10%) concentrate.
A further 800 – 1,000 tonnes of ore remains for optimisation studies in the future. Operations were held over 65 days with the longest run of over 100 hours recorded.
Mass recovery of around 17 – 20% was consistently achieved, with average concentrate grade of 4,434 ppm cobalt. Survey samples were obtained from the concentrator circuit, and independently assayed by a third-party accredited laboratory.
A wide variety of ore grade was processed which confirmed regardless of ore grade, a consistent grade of concentrate was produced. Daily average ore grades varied from 600 ppm to 1300 ppm, with the concentrate consistently between 4,000 – 5,000 ppm.
Ore processed via the Concentrator Circuit was extracted from the Pyrite Hill deposit by means of underground development. The Pyrite Hill deposit extends over 1.2 kilometres along strike, over 300 metres down dip and varies in thickness from 10 to 100 metres. Mineralisation is hosted by a quartz-albite gneiss and is characterised by the presence of disseminated pyrite concentrated parallel to primary foliation.
Ore drive development extracted material between 257 mRL and 262 mRL, approximately 40 to 50 metres below surface and 3 to 6 metres below the interpreted top of fresh rock.
For an explanation of how the concentrate is treated click here.
What’s next
The expected development schedule for the Broken Hill Cobalt Project (‘BHCP’) is shown below:
About Cobalt Blue
COB has a portfolio of three granted tenements in a total area of 49 square kilometres containing large-tonnage cobalt bearing pyrite deposits are located 23 kilometres west of Broken Hill.
The company has developed a patented minerals processing technology for treating pyrite feedstocks targeting 85 – 95% recovery of cobalt from ore to product (as mixed hydroxide precipitate or cobalt sulphate).
The Broken Hill Cobalt Project has a targeted project life of more than 20 years and will be a significant employer in Regional NSW with around 400 full-time jobs generated.
COB will become a global top 10 producer of cobalt, a critical mineral that is integral in the global journey to decarbonise via electrification.
The expected timeline for the BHCP is subject to various risks, some of which are outside the control of COB, and which include successful and timely completion of project milestones, funding availability, government and other third-party approvals.
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