Bench-scale testwork has indicated that Canadian junior eCobalt could use a rotary kiln to produce low arsenic cobalt concentrate from the ore found at its Idaho Cobalt Project (ICP), in the US.

The tests, conducted by Expert Processing Solutions, have demonstrated that a 0.2% residual arsenic content in concentrate is achievable, eCobalt reported on Monday.

The company will proceed to pilot level testing of the ICP ore in the third quarter and will use the results of the testwork to determine the final design and procurement of the critical process equipment.

eCobalt said that the new method would require changes to the roasting portion of the flowsheet and that, while the changes would not have a material impact on the capital or operating costs of a roasting facility, they would push out the completion of the optimised feasibility study to the third quarter.

The target date for commercial production, however; remains unchanged for the first half of 2020.

Meanwhile, eCobalt also reported that it had made significant progress on securing project finance and offtake arrangements, noting that interest in offtake for ICP’s future cobalt concentrate production was strong.

Demand has come from a variety of parties, including traders, producers and end-users in the battery and non-battery space.

“The ICP's cobalt concentrate is unique compared to standard cobalt concentrates where cobalt comes as a by-product to other commodities. This has generated long-term partnership opportunities with counterparties for whom the company's product complements their existing refining capabilities and needs,” eCobalt stated.

The firm has also received preliminary project finance term sheets from multiple counterparties, including strategic investors, private equity lenders, fixed income securities and commercial banks to finance the capital requirements of the ICP.

Located near the town of Salmon, in the heart of the Idaho cobalt belt, the ICP is the only, near-term environmentally permitted primary cobalt deposit in the US.