Cobalt Blue (ASX: COB) has upgraded its mineral resource at Thackaringa with the project now hosting 61,000 tonnes of contained cobalt – up 23% on the previous resource.
The upgraded resource for the project is now 72 million tonnes grading 0.08% cobalt, 9.3% sulphur and 10% iron.
According to Cobalt Blue, as well as the 23% increase in contained cobalt, the resource includes a 31% increase to total tonnage.
Cobalt Blue is earning a 100% interest in the Thackaringa project from Broken Hill Prospecting (ASX: BPL). Thackaringa encompasses 63 square kilometres and is 20km from Broken Hill in New South Wales.
Pre-feasibility due by June
A pre-feasibility study is underway and is due to be published in June.
Around 13,000m of drilling was undertaken with better drill results including 72m grading 0.11% cobalt, 10.1% sulphur and 9.8% iron, 25m grading 0.12% cobalt, 9.5% sulphur and 10.6% iron, and 40m grading 0.10% cobalt, 10.4% sulphur and 10% iron.
Earlier this month, pre-feasibility test work achieved a 96% leach extraction of cobalt on 0.06% cobalt, which is a lower grade than the actual resource.
Metallurgical test work is looking at a four-stage processing method that starts with producing a cobalt sulphide concentrate, followed by calcination of the concentrate, leaching and recovering the purified cobalt sulphate.
Under stage three of the company’s plans for Thackaringa, around A$5 million will be spent on further exploration to upgrade the resource to measured and reserve status.
The company hopes to deliver a bankable feasibility study by June next year.
Cobalt Blue and Havilah explore synergies
As part of its Thackaringa strategy, Cobalt Blue executed a memorandum of understanding with Havilah Resources (ASX: HAV) in February to investigate the metallurgical similarities and requirements for jointly commercialising Havilah and Cobalt Blue’s cobalt ore.
Cobalt Blue will undertake due diligence on Havilah’s nearby Mutooroo project including metallurgical test work on a 10kg sample of Mutooroo ore.
Full results from the study are anticipated by the end of next month.
Shares in Cobalt Blue were up more than 5% to A$1.065 by mid-afternoon trade.