PERTH (miningweekly.com) – ASX-listed Cobalt Blue has started underground development at the Pyrite Hill operation, in New South Wales, to support demonstration plant activities.

Some 3 500 t to 4 000 t of ore will be mined at Pyrite Hill to support 20 weeks of continuous operation of the demonstration plant, the company told shareholders on Wednesday.

Two underground development drives will provide access laterally to the cobalt/pyrite mineral resource and allow representative samples to be obtained. This is important to ensure that unbiased engineering data is generated from the demonstration plant for the Broken Hill cobalt project’s feasibility study.

Site establishment works have been completed and excavation of the box cut is well advanced with installation of the decline portal to commence shortly. The decline will extend approximately 80 m, and intersect with the orebody approximately 40 m below surface.

“Demonstration plant activities are coming together nicely with mining underway and processing equipment being received. Last year, our successful pilot plant opened the door to new partners. These large-scale demonstration plant cobalt samples are a game changer for Cobalt Blue, providing operating proof for project equity/debt funders and simultaneously providing high quality production scale samples for commercial partners. Well done to the Cobalt Blue team,” said CEO Joe Kaderavek.

The A$560-million Broken Hill project is expected to produce 16 700 t/y of high purity cobalt sulphate, which will be used in the manufacture of lithium-ion batteries. This production will build downstream processing capacity enabling the product to be fed into the global market’s growing demand for battery products. 

The project will also produce 300 000 t/y of elemental sulphur, which will reduce Australia’s dependence on imports for fertiliser production.