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Cobalt Blue Holdings set for first Broken Hill Pilot Plant samples with shipments from late March

Last updated: 00:15 08 Mar 2021 EST, First published: 16:15 08 Mar 2021 EST

Cobalt Blue Holdings set for first Broken Hill Pilot Plant samples with shipments from late March
Calcine received at the Broken Hill Pilot Plant ready for leaching trials.

Cobalt Blue Holdings Ltd (ASX:COB) (OTCMKTS:CBBHF) (FRA:COH) is making strong progress with its Global Cobalt Sample Program with first samples from the Broken Hill Pilot Plant expected shortly.

Commissioning is well underway at the plant and the first samples will be independently assayed before shipment begins from late March.

This progress coincides with a significant expansion of the cobalt sample program to 30 partners spanning Europe, India, Korea, United States, Japan, China and Australia.

Program doubles in size

The level of interest has exceeded COB’s expectations with the program doubling in size over the last six weeks.

It includes at least one partner who is requesting sufficient sample with the aim of pre-qualifying COB product as an approved supplier.

BHCP process diagram.

“Tremendous strides”

COB’s CEO Joe Kaderavek said: “With commissioning underway then kicking off our expanded Global Cobalt Sample Program later this month, COB is making tremendous strides towards technical and commercial milestones.”

Investors have also recognised the progress with shares up as much as 14% to A$0.45 intra-day after hitting A$0.515, a new high of more than 2.5 years, in late February, while the company's market cap is approximately A$98.2 million.

An increase in the share price from A$0.115 at the market close on December 21, 2020, also reflect increasing global interest in battery metals, including cobalt, with the EV and clean energy storage markets gaining impetus.

Strong demand

Cobalt is a strategic metal in strong demand for new generation batteries, particularly lithium-ion batteries now being widely used in clean energy systems.

The Broken Hill Pilot Plant comprises circuits for concentration, leaching and product recovery which will be supported by calcining test-work that was completed externally at ANERGY last month.

Progress on circuits

Progress achieved to date on these circuits includes:

Concentrate circuit (left) and commissioning (right).

Concentrate – the BHCP Pilot Plant concentrate circuit is aiming to treat 45 tonnes of ore to produce 7-8 tonnes of concentrate. Preliminary commissioning of the circuit began in mid-February, with operational runs now underway.

Calcine – thermal treatment of pyrite concentrate has been completed offsite, at ANERGY’s facilities in Bunbury WA.

Calcine circuit operations at ANERGY in Bunbury WA.

To date, 3 tonnes of (pyrrhotite) calcine has been produced for leaching trials. Sulphur was also recovered and this will be evaluated for commercial suitability by COB’s partner Mitsubishi Corporation.

The raw sulphur product grades were ~97–98% sulphur with purification by settling and filtration of the particulates is now required to reach market expectations of >99% sulphur purity.

Leach – pressure testing and certification of the leach circuit is scheduled for mid-March, with operations immediately following successful registration.

Trials of the leach circuit will begin shortly.

The initial 3 tonnes of calcine has been received back from ANERGY and will be prepared for leaching trials in the coming week.

Product recovery – the Pilot Plant recovery circuits will be operated in conjunction with the leach circuit.

Existing Mixed-Hydroxide Precipitate (MHP) from laboratory test-work at ALS Perth is being used to commission the cobalt sulphate refinery.

The product recovery circuit will also undergo trials.

COB expects the first samples of product from the Pilot Plant, which will then require independent assays, to be despatched later in March.

Major milestone

The Pilot Plant will allow COB to produce varying specifications of cobalt products, including mixed hydroxides and sulphates, and represents a major milestone for the business, which is centred on the Broken Hill Cobalt Project.

BHCP development timeline.

COB’s commercial aim is to make battery-ready cobalt sulphate from the pilot facility on a scale sufficient to provide test samples for global commercial partners.

The company expects qualification of its products to take 12 months or more and, if all goes to plan, will enlarge the Pilot Plant to a Demonstration Plant by the end of this year.

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