Tonnage up 66%, grade up 9% on previous estimateSydney, June 5, 2017 AEST (ABN Newswire) - Cobalt Blue (ASX:COB) is pleased to announce a significant resource upgrade at the Thackaringa Project, located near Broken Hill, NSW. This upgrade is the result of a substantial drilling campaign including 7,957m of diamond drilling (DD) and reverse circulation (RC) drilling completed during 2016/17.
- The global Mineral Resource estimate at Thackaringa now comprises 54.9Mt at 910ppm cobalt, 9.56% sulphur & 10.19% iron for 50Kt contained cobalt (at a 500ppm cobalt cut-off) - compared to the January 2017 Mineral Resource estimate (detailed in ASX release of 31 January 2017) the new estimate reflects a 66% increase in overall tonnes and a 9% increase in cobalt grade.
- Increased geological confidence has supported the classification of approximately 12% of the Mineral Resource as Indicated.
- In addition, a global exploration target comprising 18-26Mt at 800-1000ppm cobalt, 8.5-10.5% sulphur and 8-12% iron has been defined. The potential quantity and grade of this target is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in determination of a Mineral Resource.
- These results, in conjunction with the Scoping Study (to be delivered by 30 June 2017), represent a significant milestone for the Thackaringa Project.
- The COB Board, encouraged by the total potential resource at Thackaringa, is examining the use of aerial geophysical survey techniques to determine additional exploration targets.
- The shallow nature of mineralisation is considered to make these resources amenable to open pit mining.
- Thackaringa remains on target to become a world class cobalt project.
The updated Total Mineral Resource estimate at Thackaringa is apportioned to the three main deposits as follows (see the link below) (minor rounding errors may have occurred in the compilation of the table in the link below).
The resource upgrade represents a major stepping stone in the development of the Thackaringa Project, as shown below:
Aug 2016 - Feb 2017
- Cobalt Blue formed
- JV & Farm-in
- JORC 2012 upgrade
- Cobalt Blue listed
30 June 2017
- A$2m expenditure in the ground delivered. Resource restated.
Deliver: Scoping Study
Target Date: 30 June 2017
30 June 2018
- A$2.5m expenditure in ground - Indicated Resource Target
Deliver: Preliminary Feasibility Study
Target Date: 30 June 2018
30 June 2019
- A$5.0m expenditure in ground - Measured Resource + Reserves Target
Deliver: Bankable Feasibility Study + Project Approvals
Target Date: 30 June 2019
- Decision to Mine
- Project Finance
Stage One activities have been focussed on the three known deposits; namely Pyrite Hill, Big Hill and the Railway. Resource definition work will continue during Stage Two of the JV, targeting conversion of exploration targets to Mineral Resources. A key requirement of Stage 2 is to define a sufficient quantity of Indicated Resources to support the optimal mining throughput defined in the Scoping Study due end June 2017.
Additional resource potential has been defined through the identification of the exploration targets (see the link below).
The potential quantity and grade of these targets is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in determination of a Mineral Resource.
COB Chairman, Rob Biancardi commented:
"Shareholders should be delighted with the significant upgrade to the Mineral Resource. The increased grade and additional tonnage confirm Thackaringa as a significant stand-alone cobalt project, a unique deposit in Australia. The upgrade provides a major tailwind as the Thackaringa JV continues with feasibility studies, with the Preliminary Feasibility Study scheduled for completion by 30 June 2018."
To view tables and figures, please visit:
About Cobalt Blue Holdings Limited
Cobalt Blue Holdings Ltd (ASX:COB) is an exploration company focussed on green energy technology and a strategy of fast-tracking development of the Thackaringa Cobalt Project in New South Wales to achieve commercial production of cobalt. This strategic metal is in strong demand for new generation batteries, particularly lithium-ion batteries now being widely used in clean energy systems.
Cobalt Blue Holdings Limited