MOU KEY POINTS:
- COB will carry out due diligence on the Mutooroo copper-cobalt deposit by 30 April 2018.
- HAV will provide COB a representative 10kg Mutooroo sulphide ore sample. COB will perform laboratory test-work using its proprietary technology including crushing, grinding, flotation, calcining and leaching. Full results to be provided to HAV by 30 April 2018.
- Looking forward, further cooperation involving larger scale samples and joint marketing of cobalt sulphate is possible.
- The MOU may be terminated by either party.
- Potential to unlock cobalt district in Broken Hill.
Similarity of Pyrite Hosted Cobalt
COB's positive metallurgical work to date has identified a potential processing path that is demonstrating strong cobalt recoveries, for its pyrite hosted cobalt at Thackaringa. Based on ASX releases and discussions between technical staff, the parties believe HAV may have similar metallurgical requirements to commercialise cobalt from Mutooroo. The key question is whether the COB process has the potential to unlock economic value for Mutooroo.
The 10kg of test material proposed will provide a simple proof of the COB process for Mutooroo ore. The aim is to demonstrate the ability of the process to perform the following steps:
2. Pyrolysis, including production of elemental sulphur, and
3. Cobalt extraction into solution
The test work will not optimise recoveries, which will be the subject of further studies.
Thackaringa and Mutooroo Projects
The Thackaringa Project, 23 km west of Broken Hill and 400km by rail from Port Pirie consists of four granted tenements (EL6622, EL8143, ML86 and ML87) with total area of 63km2. The main targets for exploration are well known and document large tonnage cobalt-bearing pyrite deposits. The project area is under-explored, with the vast majority of historical exploration directed at or around the outcropping pyritic cobalt deposits at Pyrite Hill, Big Hill and the Railway deposit.
Potential to extend the Mineral Resource at Pyrite Hill, Big Hill, Railway and the other prospects is high. Numerous other prospects within COB's tenement package are at an early stage and under-explored. Pyrite Hill, Big Hill, Railway deposits are currently undergoing Pre Feasibility Studies due by mid 2018.
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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 widely used in clean energy systems.
COB has entered into a farm-in joint venture agreement with Broken Hill Prospecting Limited (“BPL”) in which COB seeks to acquire an initial 51% interest in the Thackaringa Cobalt Project. COB will undertake exploration and development programs on the Thackaringa Cobalt Project and, subject to the achievement of milestones, will acquire 100% of the Thackaringa Cobalt Project.
Chief Executive Officer
Cobalt Blue Holdings Limited