PERTH (miningweekly.com) - The Thackaringa cobalt project, in South Australia, is expected to require a capital investment of A$550-million to develop a 5.25-million-tonne-a-year plant.
ASX-listed Cobalt Blue on Wednesday revealed that the project would produce some 3 657 t/y metal in sulphate, and life-of-mine totals of 32 453 t, over a nine year mine life.
The mine life was based on a mineral reserve of 46.3-million tonnes, grading 819 parts per million (ppm) cobalt.
A prefeasibility study (PFS) estimated a pre-tax net present value of A$792-million and an internal rate of return of 27%, based on a production target of 40 331 t of metal in sulphate over a mine life of 12.8 years.
The production target was modelled on a reserve of 58.7-million tonnes, grading at 802 ppm, and included the probable ore reserve and a partial component of the inferred resource.
“The PFS demonstrates the potential for Cobalt Blue to become a leading global supplier of cobalt sulphate to the lithium-ion battery industry. The project will now move into a bankable feasibility study,” said Cobalt Blue chairperson Rob Biancardi.
Cobalt Blue is currently earning an interest into the Thakaringa project, which is held by Broken Hill Prospecting. The company could take full ownership of Thakaringa through a four-staged farm-in.
With the completion of the PFS, Cobalt Blue has fulfilled the requirement of Stage 2 of the earn-in agreement.
Biancardi said that the company will now focus on further resource work to target a 20-year mine life, while a number of optimisation opportunities will also be pursued for the bankable feasibility study, including optimisations to the process plant, metal recoveries and power pricing.
Cobalt Blue will also undertake product marketing assessment, in order to negotiate offtake agreements, and will complete environmental permit studies.