Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) has taken another step toward bringing its integrated cobalt supply strategy to fruition with Mining Lease Application (MLA) 634 lodged for the Broken Hill Cobalt Project (BHCP) in Far West New South Wales.
This application covers the Ancillary Mining Activities (AMAs) required for development of the BHCP and complements an earlier application, MLA614 lodged in December 2021.
The AMAs include the construction, operation and maintenance of a dual-lane sealed access road from the Barrier Highway to the BHCP site and a 220kV power line that will connect the BHCP site to the TransGrid substation in the industrial area of Broken Hill via the Barrier Highway.
They also include a 400mm diameter buried pipeline for the transmission of raw water to the BHCP site; a buried fibre optical cable to be co-located with the water pipeline; and a creek diversion required for the development of the Railway deposit.
BHCP location map.
Development activities
COB is also making steady progress with other aspects of the BHCP development with a mineral resource estimate (MRE) update expected to be released in early November 2023.
A geotechnical program has been completed considering process and non-process infrastructure to inform the design of foundations and retaining structures.
Environmental site investigations are also now complete with site disturbance footprint and no-go zones established to minimise or avoid impacts to biodiversity, Aboriginal heritage and creek lines.
LEFT - Ecologists completing Biodiversity Assessment Method plots near the Railway Deposit; RIGHT - soils scientists describing soil cores.
This work will form part of the Environmental Impact Statement that will be submitted for State Significant Development Approval in 2024.
In addition, a referral under the Commonwealth Environmental Projection and Biodiversity Conservation Act 1999, using site-based biodiversity data, will be made in late 2023.
“Substantial progress”
Cobalt Blue’s chief executive officer Joe Kaderavek said: “The successful operation of our Demonstration Plant has formed a significant focus, while the company has also made substantial progress in the assessment of other major modifying factors.
"We are pleased with the resolution of the site layout and the final submission of mining lease applications.”
Geotechnical consultant logging a shallow test pit at the intersection of the proposed access road and the Barrier Highway.
Access route
Lodging of MLA634 succeeds the completion of a discrete transport and logistics review. An amended access route is expected to enhance operational safety with improved sightlines at major intersections, particularly at the Barrier Highway.
In addition, this route decreases the overall distance from Broken Hill to the site administration centre by 7 kilometres and as a result, road travel has been reduced to 27 kilometres or around 20 minutes travel time, supporting the Broken Hill-based workforce required to operate the mine.
Along with existing Mining Leases (ML86 and ML87), MLA614 and MLA634 collectively cover the area required for development of the BHCP.
The grant of any Mining Lease in favour of MLA614 and or MLA634 is subject to the attainment of enabling approvals including development consent.
Resource estimation
In February 2023, COB completed a comprehensive drilling program to support various aspects of a definitive feasibility study (DFS) for the BHCP, which included:
- Dedicated geotechnical drilling to inform pit slope stability analysis for mine design and optimisation at the Big Hill and Railway deposits.
- Investigation of zones of potential resource extension at the Big Hill and Railway deposits.
- Infill drilling targeting improved resource classification at the Big Hill deposit.
- Drilling for waste rock characterisation at the Pyrite Hill, Big Hill and Railway deposits to inform detailed design criteria for the Integrated Waste Landforms (‘IWLs’).
Metres drilled at the BHCP since 1967 with COB completing/managing more than 40,000 metres since 2017.
Assays from the 2022-23 drilling were received during the June 2023 quarter, allowing for compilation of a revised MRE for the Broken Hill cobalt deposits, which is expected to be released in early November 2023.