Cobalt Blue resumes discussions with battery and EV makers: Ore production on the horizon
Cobalt Blue says ore production and processing will commence shortly
Source: Cobalt Blue
Mentioned
KEY POINTS
- Cobalt Blue expects to produce 3,000 kgs of cobalt products over the next 20 weeks
- Management said the co has received "better than expected" demand for large scale samples
Cobalt Blue (ASX: COB) expects ore production to commence shortly after progressing its Demonstration Plant at the Pyrite Hill site, in NSW.
“We anticipate the Demonstration Plant will deliver over 3,000 kgs of cobalt products from June – November 2022,” said CEO Joe Kaderavek.
The Demonstration Plant is comprised of two phases:
Mined ore will be crushed, milled and treated to produce a cobalt-pyrite concentrate at the Pyrite Hill site
Concentrate will be trucked to the Demonstration Plant in Broken Hill for extraction and recovery of cobalt as
Mixed hydroxide precipitate
Cobalt sulphate
“In parallel, we have received better than expected demand for larger scale samples globally,” added Kaderavek.
Cobalt Blue said that following the easing of covid travel restrictions, the company has recommenced meetings with key battery and EV makers in the US, Korea and EU.
Somehow green
It's been a strange week for Cobalt Blue, up 18% while most of its peers in cobalt, lithium and green metal sectors continue to sell off.
A potential catalyst buoying Cobalt Blue is its appearance on ABC's Four Corners on Monday.
The company was highlighted as 'key' Australian project addressing the global demand for critical miners.
The big picture
Source: Cobalt Blue (June 2021)
In summary, Cobalt Blue expects to make a final investment decision for the Broken Hill Cobalt Project in late 2022. This will be accompanied by feasibility studies and relevant approvals.
Cobalt Blue 12-month price chart
