- 01Halls Creek tests support a scoping study due next quarter.
- 02KCR signed a non-binding 1,000tpa cobalt metal term sheet.
- 03Broken Hill PFS assesses a 10-year starter mine.
Cobalt Blue Holdings (ASX: COB) has reported strong progress across its portfolio in the three months to end September, with key initiatives at its Halls Creek project and Kwinana cobalt refinery (KCR) in Western Australia as the Broken Hill project in New South Wales advances towards clearer commercial outcomes.
The company advanced metallurgical test work and supporting development studies for the Halls Creek project ahead of an updated scoping study targeted for completion in the next quarter.
Testing aims to further validate a proposed Stage 1 Onedin heap leach flowsheet and assess whether selected material from both deposits could be treated through a common heap leach operation to simplify project development, reduce processing complexity, and improve capital efficiency.
The results are expected to strengthen the basis for assessing flowsheet performance and the potential influence of changing feed characteristics as mining progresses.
Silver recovery at Halls Creek is also being investigated as a potential opportunity to enhance project economics alongside the copper and zinc recoveries contemplated for Stage 1.
KCR Offtake Agreement
The KCR continued to move towards final investment decision, with progress during the period focused on securing metal offtake and financing arrangements and completing project studies.
Cobalt Blue progressed discussions with potential cobalt sulphate and cobalt metal offtake partners and post-quarter, entered into a non-binding term sheet with Swiss company STG Metals for the sale of up to 1,000 tonnes per annum of standard grade cobalt metal over an initial three-year term.
Securing metal offtake is central to the success of KCR during the initial ramp-up period, and the company plans to commence the refinery with metal production and sales while cobalt sulphate is progressed through qualification programs with end users.
Project studies during the period included the production of cobalt sulphate and cobalt metal from pilot operations at the Broken Hill Technology Centre in NSW, assessment of alternative Australian-sourced feedstocks including battery black mass, updates to engineering documents to account for optimisation of the process parameters, and vendor engagement to obtain updated 2026 pricing.
Broken Hill PFS
Cobalt Blue has progressed a preliminary feasibility study for the Broken Hill project, with completion of a strategic mine planning assessment to support evaluation of a minimum 10-year starter case aimed at reducing upfront capital requirements while preserving longer-term expansion options.
Using existing measured and indicated mineral resource models and updated project assumptions, the assessment includes revised pit optimisations and development of a conceptual mine schedule based on the Pyrite Hill and Railway deposits.
Separate integrated waste landforms have been considered at both deposits alongside an alternative involving backfilling the mined-out Pyrite Hill pit with mine waste and process rejects from Railway.
Both concepts were considered feasible at a strategic level and are expected to undergo further assessment through the PFS.
Project Infinity Contract
Cobalt Blue strengthened its strategic relationship with Glomar Minerals during the quarter, entering into a contract to contribute to the preliminary economic analysis (PEA) for the proposed US-based Project Infinity polymetallic nodule refinery.
The scope of work includes metallurgical testing and process flowsheet development, along with capital and operating cost estimation.
US site evaluation activities will also be conducted to support the PEA, currently targeted for completion before year end.
Cobalt Blue chief executive officer Dr Andrew Tong said the Glomar contract reflected the value of the company’s proprietary processing expertise and the growing role of the Broken Hill Technology Centre in supporting internal projects and third-party critical minerals opportunities.
Get the wire before the market opens.
The ASX small-cap stories that matter, filed before 9am AEST. Curated by the Small Caps desk.