COBALT BLUE HOLDINGS (AU:COB) is confident that investors will appreciate not only its Thackaringa cobalt resource in New South Wales almost doubling, but also see the potential scale and strong margin offered by the company’s mining and processing plans.
The company is a recent spinout of Broken Hill Prospecting Ltd (AU:BPL), which has turned its attention to heavy mineral sands.
Thackaringa was originally mined for silver more than 100 years ago, but activity soon moved 23km away to the “birthplace of Australian mining” – Broken Hill, the starting point for global mining major BHP (AU:BHP).
Now Thackaringa’s cobalt mineralisation is being uncovered and, within six months, Cobalt Blue has upgraded the project’s resource to 54.9 million tonnes at 910 parts per million cobalt for ~50,000 tonnes of contained cobalt.
The company is targeting an indicated resource that will underpin a long life mine at 4,000t per annum cobalt production, a top-five global mine.