Collerina Cobalt (ASX: CLL) has reported its prefeasibility study into developing a high purity alumina (HPA) operation using its proprietary technology remains on track for delivery in October, with many key milestones now complete and orders placed for long lead pilot plant items.
The company has also secured premises to house the pilot plant for the HPA definitive feasibility study.
Collerina Cobalt has developed a disruptive process for generating HPA from industrial feedstock.
Traditionally, HPA is made from aluminium metal, but as a result of the rapidly growing HPA market, several companies have come up with alternative processes that purport to be a more cost-effect route to creating HPA.
Collerina Cobalt is one of these companies and says its proprietary technology allows for a “far simpler process flowsheet” that doesn’t require a mining operation or associated infrastructure, which can result in a “significant” reduction in capital and operating expenditures.
The company has successfully produced HPA at the beginning of August using its technology which involved solvent extraction and a mini-rig run with industrial feedstock.
Preparations are underway for a second solvent extraction mini rig run in September.
Collerina Cobalt plans to kick-off the definitive feasibility pilot testing as soon as the prefeasibility study has been completed.
As part of the company’s fast-track to HPA production strategy, it has also engaged permitting consultants to begin preliminary environmental assessment and facilitate the permitting process in New South Wales.
Collerina Cobalt has also begun discussions to secure a site to begin commercial HPA production, with the planned site to be in Newcastle.
In addition to its HPA production strategy, Collerina Cobalt is also advancing the Collerina cobalt and nickel project, which has a resource of 16.3 million tonnes at 0.93% nickel and 0.05% cobalt.
However, other minerals were identified at the project including aluminium, iron, manganese, magnesium and scandium
Metallurgical test work on generating HPA as well as extracting other Collerina minerals began in December last year.
At midday, shares in Collerina Cobalt were up more than 17% to $0.115.