Metallurgical test work continues while geotechnical, hydrological and environmental assessments are ongoing.
The company said results have been positive and the PFS is on track for completion by 30 June 2018.
The Thackaringa project is close to the historical mining centre of Broken Hill and is well connected to existing road and rail transport routes.
In addition, BPL will receive a 2% net smelter royalty on all cobalt produced from the Thackaringa tenements for the life of mine.
Cobalt Blue can earn 100% by completing a farm-in, which includes committing $10.9 million project expenditure by 30 June 2020 and paying its partner $7.5 million in cash.
The company has earned a 51% interest and this will be retained subject to completing stage I milestones.
These include a 40 million tonnes indicated resource sufficient to support a PFS to JORC 2012 standard and completion of the PFS.
Cobalt Blue’s exploration results continue to justify proceeding further along the pathway towards commercial development of the project.
Next steps at Thackaringa
The nature and scale of further work will be determined following completion of a revised resource estimate.
The company will also deliver a scoping study by the end of March quarter 2018 and complete an aerial geophysical program.
Cobalt Blue aims to spend $2.5 million in ground by 30 June 2018 targeting indicated resources of 40 million tonnes and to deliver a PFS.