Proactiveinvestors Australia Broken Hill Prospecting Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Broken Hill Prospecting Ltd RSS feed en Fri, 21 Jun 2019 03:17:55 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Broken Hill Prospecting prioritises 43 heavy mineral sands targets for future drilling ]]> https://www.proactiveinvestors.com.au/companies/news/219636/broken-hill-prospecting-prioritises-43-heavy-mineral-sands-targets-for-future-drilling-219636.html Broken Hill Prospecting Ltd (ASX:BPL) has made significant progress with drill hole targeting at its Murray Basin Heavy Mineral Sands (HMS) targets which extend across northwest Victoria.

With field activities in the Murray Basin region deferred at the request of landowners due to ongoing severe drought conditions, the targeting will greatly improve the efficiency of future drilling.

As well as the Victorian tenements, BPL’s HMS targets extends across southwest New South Wales and eastern South Australia.

READ: Broken Hill Prospecting's Murray Basin mineral sand targets form part of future focus

Modern aeromagnetics data covering more than 60% of BPL’s Victorian HMS tenements has been reprocessed with state-of-the-art filters specifically developed for HMS exploration.

There were 150 linear magnetic anomalies interpreted in the filtered magnetics with 43 regarded as having significant potential and prioritised for drill testing.

Highest priority targets

The primary targets are:

Extensions to the Pirro deposit mined by Iluka Resources Limited (ASX:ILU); Extensions of the Gypsum and Tempy strands south of Ouyen; and Testing of the Roselyn and Curyo strandlines of the Curyo area.

BPL has the largest tenement holding in the world class Murray Basin HMS province.

BPL has a strategy of undertaking low-cost mineral sands exploration in the Murray Basin of south-eastern Australia.

As a springboard for this, the company uses the huge exploration investment already made by major companies since emergence of the basin in the 1990s as a world-class HMS province.

The company holds title over highly prospective exploration ground in areas that are close to infrastructure that is crucial to bring any HMS discovery into production.

Mobile mining techniques

Newly-developed mobile mining and processing technologies have created an imperative to reassess the economics of a broad range of high-grade HMS strandline deposits where potential production has been discounted or indefinitely deferred by major HMS producers.

Strong market conditions

BPL’s strategy is supported by strong market conditions for rutile, zircon and ilmenite feedstocks with the outlook also providing confidence for steadily strengthening demand and commodity prices.

The company has previously defined JORC 2012 resources at the Jaws and Gilligans strandlines of the Central Para district in NSW.

Once resources are estimated to the required standard, projects can undergo internal assessment and ranking using economic parameters introduced by BPL’s new mobile production model.

BPL has also deferred all field activities at its base and precious metals projects around Broken Hill in far west NSW due to the severe drought conditions.

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Fri, 03 May 2019 16:29:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219636/broken-hill-prospecting-prioritises-43-heavy-mineral-sands-targets-for-future-drilling-219636.html
<![CDATA[News - Broken Hill Prospecting's Murray Basin mineral sand targets form part of future focus ]]> https://www.proactiveinvestors.com.au/companies/news/218997/broken-hill-prospecting-s-murray-basin-mineral-sand-targets-form-part-of-future-focus-218997.html Broken Hill Prospecting Ltd (ASX:BPL) specialises in exploration in Australia. It is run by managing director & CEO Anthony 'Trangie' Johnston, a geologist and experienced CEO and company director.

Johnston has more than 21 years of industry experience and also heads up Trangman Consulting. He has previously held principal geologist, exploration manager and senior consultant roles at a variety of organisations including SRK Consulting after starting out his career at the Geological Survey of NSW.

What does Broken Hill Prospecting own?

The company holds assets on Australia’s east coast, including heavy mineral sands (HMS) projects in the Murray Basin region of south‐eastern Australia.

BPL’s low‐cost mineral sands exploration program in the basin was designed to leverage exploration investment made by major companies since it emerged as a world‐class HMS province in the 1990s.

The company’s acreage includes prospective ground in New South Wales and Victoria near infrastructure that could bring an HMS discovery into production.

BPL managing director & CEO Johnston and director Matthew Hill highlighted the prospectivity of the Murray Basin area in its 2018 annual report published last month.

Johnston and Hill wrote on behalf of the company’s board: “There is considerable opportunity for valuable new discoveries by testing new geophysical targets, including interpreted extensions to known deposits, and through the follow-up of isolated and/or poorly understood HM intercepts from historical drill programs.

“Exploration programs will require a relatively small component of targeted aircore drilling to test the most promising anomalies, with the ability to immediately infill adjacent to any high‐grade intersections.”

Johnston and Hill flagged the company had the largest tenement holding in the Murray Basin HMS province, pinpointing the Euston and Ouyen project areas as offering “significant exploration opportunity.”

The board acknowledged exploration activities in the basin had been deferred due to drought conditions but said the company hoped to go on to define and upgrade resources at its deposits and make new discoveries in the basin’s two south-eastern states.

BPL previously defined JORC resources under the 2012 code for the Jaws and Gilligans strandlines of the Central Para district in NSW.

Johnston and Hill wrote last month: “Once resources are estimated to the required standard, projects can undergo internal assessment and ranking using economic parameters introduced by a new mobile production model adopted by BPL.”

The company board noted in the annual report aeromagnetics data for more than half its Victorian HMS tenements had been reprocessed with HMS exploration filters, with 43 linear magnetic anomalies of being highlighted as “significant potential and prioritised for drill testing”.

BPL’s highest priority Victorian HMS targets included: extensions to a Pirro deposit mined by Iluka Resources; extensions to the Gypsum and Tempy strands south of Ouyen; and the Roselyn and Curyo strandlines of Curyo area.

The company also holds assets in the Broken Hill region of New South Wales and flagged its exploration efforts in the region had been largely deferred last year at landowner requests due to drought and heatwave conditions.

Inflection points

Exploration drilling success and resource upgrade and definition results for the Murray Basin in New South Wales and Victoria

Improvement to drought and inclement weather conditions that affect ground’s suitability for exploration activities

Clarity on ownership and advancement of Thackaringa Joint Venture for a cobalt project in the Broken Hill region

Resolution of the dispute with JV party Cobalt Blue Holdings Limited (ASX:COB) over stakeholdings

Significant transactions and partnerships

Company board highlights follow-up drill targets

“Although on‐ground exploration (in Murray Basin) has been deferred due to the prevailing drought conditions, significant progress was made with drill-hole targeting which will greatly improve the efficiency of future drilling,” BPL managing director and Trangie Johnston and director Matthew Hill wrote on behalf of the company’s board in BPL’s 2018 annual report last month.

“Modern aeromagnetics data covering more than 60% of BPL’s Victorian HMS tenements has been reprocessed with state‐of‐the‐art filters specifically developed for HMS exploration.

“One hundred and fifty linear magnetic anomalies were interpreted in the filtered magnetics, with 43 regarded as having significant potential and prioritised for drill testing.”

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Thu, 25 Apr 2019 22:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218997/broken-hill-prospecting-s-murray-basin-mineral-sand-targets-form-part-of-future-focus-218997.html
<![CDATA[News - Broken Hill Prospecting develops action plan to get cobalt project ‘back on track’ ]]> https://www.proactiveinvestors.com.au/companies/news/209639/broken-hill-prospecting-develops-action-plan-to-get-cobalt-project-back-on-track-209639.html Broken Hill Prospecting Ltd (ASX:BPL) has developed a four-step action plan to deliver on its vision to get the Thackaringa Cobalt Project joint venture near Broken Hill ‘back on track’ to development.

The intention of the plan is to deliver on the value of the world-class project for BPL’s shareholders and those of JV partner Cobalt Blue Holdings Ltd (ASX:COB).

It follows recent disagreements between the two partners in the Thackaringa Joint Venture, in which COB holds 70% and BPL 30%.

READ: Broken Hill Prospecting has plenty of upside with 12-month target price of 23 cents

BPL’s managing director Trangie Johnston said in a letter to shareholders: “BPL has a strong vision for the project that we wish to share with our shareholders.

“We welcome all the support you can give us in pursuit of our goal to get Thackaringa back on track.

“By adopting our plan, we can overcome recent disagreements and place the project firmly back on the path to development.”

BPL’s base and industrial metals tenements around Broken Hill.

Four-step plan

The four-step action plan that BPL said needed to be adopted by the JV partners to ensure delivery of the project includes:

- Appoint a respected, professional and independent manager; - Correct the deficiencies in the pre-feasibility study (PFS) that was released last July; - Jointly determine the appropriate scope and standard for the next stage of the project; and - Use our available cash resources effectively and live within our means to achieve these goals. READ: Broken Hill Prospecting confirms copper-cobalt on new tenement near Broken Hill, shares jump

Johnston said: “This action plan will be of immediate benefit to BPL and COB shareholders because it will restore unified direction, purpose and confidence for delivery of the project.

“We seek to convince COB of the significant benefits at hand.”

Positive PFS

The pre-feasibility study (PFS) confirmed the potential for Thackaringa to become a world-class cobalt producer.

Completion of this by COB to the approval of BPL enabled COB to reach the 70% ownership level.

READ: Broken Hill Prospecting will retain 30% interest in Thackaringa Cobalt Project

Since then several issues with the PFS, including capital costs and the need to upgrade the resource, have seen COB decide to withdraw from stage III of the joint venture.

“BPL regrets COB’s decision to withdraw from stage III,” Johnston said.

“However, this action has crystallised a 30% interest in the project for BPL and our shareholders, which we believe has significant value. We also have our ongoing royalty interest.

“COB’s action represents a major value shift, at the project equity level, that the board will seek to maximise.”

The Thackaringa project is not far from the traditional mining centre of Broken Hill.

“Deficiencies can be corrected”

BPL’s managing director said that while the PFS was positive, a review by BPL’s independent adviser and by Wood PLC, acting on behalf of the joint venture, identified areas that were deficient.

“These deficiencies can be corrected. It is clear, however, that experienced management is required to run the project now and in the future.

“This is something BPL has recommended to COB for many months.”

In the letter to shareholders, Johnston stated: “The deficiencies have been hasty, ill-considered and do not follow requisite procedures stipulated by our joint venture processes.

“Of real concern is the actual commercial viability of the untried process technology developed by COB on which the PFS is based.”

Since the release of the PFS, he said that BPL had sought to negotiate with COB a sensible and agreed path so that the project can be advanced.

“We will continue in our endeavours”

He concluded: “We have had no success to date, however, given the large common shareholder base between BPL and COB, we will continue in our endeavours. 

“BPL has also acted via the dispute resolution mechanisms of the Thackaringa Joint Venture to preserve the value of the project.

“We are seeking to impose reasonable and normal checks and balances on management and to ensure prudent financial management and reporting of the joint venture’s funding, given current difficult market conditions.

“BPL’s board appreciates the support it is receiving from our shareholders.

“The Board will endeavour to resolve these matters as expeditiously as possible by working co-operatively with COB.

“That is the best way to unlock the extensive value that lies in the ground at Thackaringa.”

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Wed, 21 Nov 2018 15:36:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209639/broken-hill-prospecting-develops-action-plan-to-get-cobalt-project-back-on-track-209639.html
<![CDATA[News - Broken Hill Prospecting will retain 30% interest in Thackaringa Cobalt Project ]]> https://www.proactiveinvestors.com.au/companies/news/208185/broken-hill-prospecting-will-retain-30-interest-in-thackaringa-cobalt-project-208185.html Broken Hill Prospecting Ltd (ASX:BPL) will retain its 30% interest in the Thackaringa Cobalt Project near the mining centre of Broken Hill.

This follows a decision this week by Thackaringa Joint Venture (TJV) partner Cobalt Blue Holdings Ltd (ASX:COB) to not exercise its rights to earn the stage III percentage share.

Large cobalt resource

BPL managing director Trangie Johnston said this represented a big shift in value for BPL shareholders as the project hosted a large cobalt resource with the potential to provide high-purity cobalt for the battery revolution.

In a statement, BPL said it was still considering the broader implications of COB’s notice.

By electing not to proceed further with the TJV agreement, COB will retain a 70% interest.

PFS confirms project is robust

This was attained after a recent pre-feasibility study (PFS) confirmed that Thackaringa is a robust project with an ore reserve of 46.3 million tonnes at 819 ppm cobalt and a pre-tax net present value (NPV) of $792 million.

While BPL continues to review the COB notice, it said the following matters appeared clear at this stage:

- COB’s appointment as manager of the Thackaringa Cobalt Project under the TJV had now ceased.

- COB continued to be solely responsible for the risk and cost of work currently underway at Thackaringa that had not been approved by the TJV management committee.

READ: Broken Hill Prospecting confirms copper-cobalt on new tenement near Broken Hill, shares jump

BPL recently confirmed copper-cobalt mineralisation on a new tenement along strike from the Broken Hill silver-lead-zinc ore body that has been worked continuously for more than 130 years.

BPL’s extensive tenement holding in the world-class Broken Hill region.

Re-assaying of core taken from drilling of Burtt & Catterson’s Prospect in 1957 resulted in copper-cobalt results of up to 4.7 metres at 690ppm cobalt and 0.18% copper from 121.3 metres.

Another strong copper result of 5.5 metres at 0.34% from 234.2 metres was returned and BPL now plans detailed logging and further sampling of the historical core.

New ground secured

In August BPL secured three new exploration licences covering 209 square kilometres of prospective terrain in the Broken Hill district, adding to existing tenement holdings in the Thackaringa area.

These tenements cover under-explored Broken Hill and Thackaringa Group rocks, with numerous base and precious metals, and industrial mineral prospects.

They significantly increase BPL’s holdings in a world-class mineral province.

BPL also holds a significant package of heavy mineral sands prospects in the Murray Basin.

Mineral sands tenements in the Murray Basin.

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Wed, 31 Oct 2018 13:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208185/broken-hill-prospecting-will-retain-30-interest-in-thackaringa-cobalt-project-208185.html
<![CDATA[News - Broken Hill Prospecting confirms copper-cobalt on new tenement near Broken Hill, shares jump ]]> https://www.proactiveinvestors.com.au/companies/news/206343/broken-hill-prospecting-confirms-copper-cobalt-on-new-tenement-near-broken-hill-shares-jump-206343.html Broken Hill Prospecting Ltd (ASX:BPL) has confirmed copper-cobalt mineralisation on a new tenement along strike from the Broken Hill silver-lead-zinc ore body that has been worked continuously for more than 130 years.

Re-assaying of core taken from drilling of Burtt & Catterson’s Prospect in 1957 resulted in copper-cobalt results of up to 4.7 metres at 690ppm cobalt and 0.18% copper from 121.3 metres.

Another strong copper result of 5.5 metres at 0.34% from 234.2 metres was returned and BPL now plans detailed logging and further sampling of the historical core this month.

Investors have responded positively with shares up 30% to 6 cents early afternoon.

“Highlights mineral potential”

BPL managing director and CEO Trangie Johnston said: “The copper-cobalt results from re-sampling of historical core at the Burtt and Catterson prospect highlights the mineral potential of this world-class region.

“BPL’s expanded portfolio around Broken Hill has identified numerous targets within the Thackaringa Group of rocks emerging as a new style of mineralisation and exploration focus.”

READ: Broken Hill Prospecting adds to its extensive exploration portfolio in the Broken Hill district

In August BPL secured three new exploration licences covering 209 square kilometres of prospective terrain in the Broken Hill district, adding to existing tenement holdings in the Thackaringa area.

These tenements cover under-explored Broken Hill and Thackaringa Group rocks, with numerous base and precious metals, and industrial mineral prospects.

They significantly increase BPL’s holdings in a world-class mineral province.

READ: Broken Hill Prospecting has plenty of upside with 12-month target price of 23 cents

Work on the Main Line tenement, which includes the historical Burtt & Catterson’s workings, has started with an examination of historical drill core and assay results.

Burtt & Catterson’s Prospect, about 8.5 kilometres southwest of Broken Hill, includes several historical bulldozer costeans, shallow pits and two shafts, 35 metres and 21 metres deep.

BPL’s extensive tenement holding in the world-class Broken Hill region.

Three diamond holes were drilled at the prospect in the 1950s but only cursory surface exploration has since been undertaken.

Review of data

In a review of data, assay intervals published in old Zinc Corporation and CRA exploration reports were of interest as they show thin bands with up to 4% copper in thicker silica and iron-rich lode rock intercepts.

In addition, a 5.5-metre interval historically assayed at 0.16% or 1600ppm cobalt.

The diamond core holes drilled by Zinc Corporation in 1957 were the only deep drill holes at the prospect and core is stored at the Geological Survey of NSW EC Andrews core facility in Broken Hill.

READ: Broken Hill Prospecting’s partner completes stage II earn-in for Thackaringa Cobalt Project joint venture

Apart from rare cases such as the Thackaringa pyrite-cobalt deposits of BPL and Cobalt Blue Holdings Ltd (ASX:COB) and Copper Blow of Silver City Minerals Ltd (ASX:SCI), exploration for deposits hosted by the Thackaringa Group rocks were for many years discounted in favour of Broken Hill-type prospects.

Strong cobalt demand

Surging demand for cobalt has sparked a revival of exploration for economic copper and strategic metals in the iron-rich horizons that occur throughout the Thackaringa Group.

Rock chip sampling by BPL, Silver City Minerals and others around Broken Hill, has demonstrated that widespread copper-cobalt geochemical anomalism at surface is associated with Thackaringa Group rocks.

Current work is aimed at defining these anomalies through more comprehensive sampling and ground-based geophysical techniques such as induced polarisation.

Further work

BPL will geologically log the three 1957 holes in detail aimed at recognising indicator lithologies, including ironstone, garnet-rich lithologies and quartz–gahnite rocks.

Any further mineralisation identified will be assayed for a full economic metal suite including gold.

It is expected that follow-on work will involve compiling the original company mapping after establishing GPS ground control points, including accurate location of the original drill collars.

Following the site reconnaissance, geological traversing; 3D interpretation and modelling; near-surface sampling programs; and exploration drilling will follow if warranted.

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Thu, 04 Oct 2018 12:23:00 +1000 https://www.proactiveinvestors.com.au/companies/news/206343/broken-hill-prospecting-confirms-copper-cobalt-on-new-tenement-near-broken-hill-shares-jump-206343.html
<![CDATA[News - Cobalt Blue Holdings earns 70% beneficial interest in Thackaringa Cobalt Project joint venture ]]> https://www.proactiveinvestors.com.au/companies/news/204200/cobalt-blue-holdings-earns-70-beneficial-interest-in-thackaringa-cobalt-project-joint-venture-204200.html Cobalt Blue Holdings Ltd (ASX:COB) has crossed a major milestone by completing the stage II earn-in obligations for the Thackaringa Cobalt Project joint venture in Broken Hill, New South Wales.

Joint venture partner Broken Hill Prospecting Ltd (ASX:BPL) has completed a rigorous review of the stage II deliverables and has formally announced a 70% beneficial ownership for Cobalt Blue over the Thackaringa tenements.

The Thackaringa Joint Venture (TJV), of which Cobalt Blue is the manager, is working on various processing options for an integrated cobalt production strategy.

READ: Cobalt Blue optimising the Thackaringa Cobalt Project

Cobalt Blue is progressing optimisation studies as part of its plan to commercialise the project which hosts an initial ore reserve of 46.3 million tonnes at 819 ppm cobalt.

These studies form part of a bankable feasibility study (BFS) which is following up the recent pre-feasibility study (PFS) which justifies proceeding towards commercial development.

The PFS confirmed that the Thackaringa project is of global significance as a sustainable, low-cost source of high purity cobalt sulphate for the battery revolution.

  Four major catalysts for Cobalt Blue in the next 12 months, starting in Q4 2018:

• Mine life extension: Substantial potential exists to extend project life targeting inferred inventories from the known resources and from other sources beyond Thackaringa.

A significant drilling campaign will begin shortly with results to be progressively delivered culminating in a new resource model by end of Q1 2019. A 20-year mine life is a vastly superior investment to the current 13-year study.

• Metal recovery optimisation: The company adopted a conservative 85.5% cobalt recovery rate for the PFS (versus an already achieved 88% recovery). Larger scale testing will be conducted during the BFS, incorporating recycle streams, for which a 90% recovery rate is targeted.

Cobalt Blue will be releasing these results by the end of Q2 2019.

• Optimisation of power consumption/pricing: 22% of the site cash costs were related to electrical power. Strong opportunities exist for minimising energy consumption as well as distributed energy generation (solar photovoltaic) to substantially reduce these costs.

• Process plant tailings: A tailings optimisation study will be undertaken with results to be delivered by the end of Q4 2018.

READ: Cobalt Blue Holdings delivers ‘comprehensive PFS that showcases Thackaringa Cobalt Project’

The estimated post-tax net present value of the Thackaringa project is $544 million, delivering an IRR of 22% with a payback period of less than four years.

Importantly, given the capital intensity (US$/tonne cobalt production) of about US$115,000 per tonne, the project is a standout amongst its global peer group.

Cobalt Blue’s strategic focus is on the battery industry and producing a battery-ready cobalt product, cobalt sulphate, at sufficient purity to enter the production chain directly.

This allows the company to sell directly into the battery industry and specifically to cathode precursor manufacturers representing the front end of the industry.

Cobalt Blue’s board and management have a strong track record of attracting partner interest and attracting new capital, particularly due to the processing technology.

This includes a US$6 million investment from LG International, the resources investment arm of LG Corporation, acting in cooperation with LG Chem, one of the world’s largest lithium-ion battery makers.

READ: Cobalt Blue Holdings’ Board confident of funding next stages of world-class cobalt project ]]>
Wed, 05 Sep 2018 16:17:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204200/cobalt-blue-holdings-earns-70-beneficial-interest-in-thackaringa-cobalt-project-joint-venture-204200.html
<![CDATA[News - Broken Hill Prospecting’s partner completes stage II earn-in for Thackaringa Cobalt Project joint venture ]]> https://www.proactiveinvestors.com.au/companies/news/204190/broken-hill-prospectings-partner-completes-stage-ii-earn-in-for-thackaringa-cobalt-project-joint-venture-204190.html Broken Hill Prospecting Ltd (ASX:BPL) has confirmed that Cobalt Blue Holdings Ltd (ASX:COB) has earned a 70% beneficial interest in the Thackaringa Joint Venture (TJV) after completing technical and financial milestones under stage II earn-in.

Broken Hill now holds the balance of 30% beneficial interest and 100% of the legal title.

The joint venture partners are undertaking a bankable feasibility study (BFS) on the TJV, following up on the recent pre-feasibility study (PFS) which justifies proceeding towards commercial development.

READ: Broken Hill Prospecting confirms robust pre-feasibility results for Thackaringa Cobalt Project

The PFS confirmed that the Thackaringa project is of global significance as a sustainable, low-cost source of high purity cobalt sulphate for the battery revolution.

Broken Hill managing director and chief executive officer Trangie Johnston said: “BPL has unlocked substantial shareholder value from its Cobalt Blue spin out initiative in early 2017.

“More than $8 million has been directly invested in the world-class Thackaringa Cobalt Project, culminating in a positive PFS delivered to the market in early July 2018.

“BPL retains a significant direct interest in the Thackaringa project, and also holds long-term rights, including payment of $7.5 million cash, a royalty interest and rights to intellectual property developed by the Thackaringa Joint Venture.”

READ: Broken Hill Prospecting has plenty of upside with 12-month target price of 23 cents

A significant drilling campaign will begin shortly at the TJV tenements with results to be progressively delivered culminating in a new resource model by end of Q1 2019.

Meanwhile, Broken Hill retains the sole rights to base and precious metals on the TJV tenements, where it is actively exploring for Broken Hill (lead-zinc-silver) style mineralisation, precious metals and industrial minerals.

The company has prioritised multiple prospects for further exploration.

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Wed, 05 Sep 2018 14:25:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204190/broken-hill-prospectings-partner-completes-stage-ii-earn-in-for-thackaringa-cobalt-project-joint-venture-204190.html
<![CDATA[News - Broken Hill Prospecting has plenty of upside with 12-month target price of 23 cents ]]> https://www.proactiveinvestors.com.au/companies/news/203493/broken-hill-prospecting-has-plenty-of-upside-with-12-month-target-price-of-23-cents-203493.html Broken Hill Prospecting Ltd (ASX:BPL) is leveraged to strengthening heavy mineral sands (HMS) markets and future cobalt demand, prompting Independent Investment Research (IIR) to set a 12-month price target of 23 cents.

The target set by the independent investment research house is more than three times the company’s current price of 7.2 cents.

BPL’s market cap at August 16 was $10.55 million, diluted for in-money options, and cash at hand at June 30 was $2.09 million.

READ: Broken Hill Prospecting adds to its extensive exploration portfolio in the Broken Hill district

The company is focused on a suite of highly prospective exploration and development properties in the Murray Basin of NSW, Victoria and South Australia, and in the Broken Hill region of NSW.

BPL project location map.

In a research report, IIR said most relevant to current markets was BPL’s involvement in the Thackaringa Joint Venture (TJV), with Cobalt Blue Holdings Ltd (ASX:COB).

The JV has the Thackaringa Cobalt Project (TCP) 25-kilometres from Broken Hill, which is operated by COB, a special purpose vehicle spun out of BPL in early 2017.

COB fully funds activities as part a farm-in and royalty agreement with BPL.

READ: Broken Hill Prospecting working with JV partner to realise value of major cobalt asset

Under the terms of the agreement, COB can earn 100% of the TCP, with BPL retaining a 2% net smelter return royalty on any cobalt produced.

COB has earned 51% with its submittal to move to 70% ownership being reviewed by BPL after the recent completion of a pre-feasibility study (PFS).

Thackaringa Cobalt Project mineral resources.

BPL also has the right to base and precious metals over the TJV tenements and has over 200 square kilometres of other base and precious metals and industrial minerals rights in the area.

Another key focus is the Murray Basin HMS properties, which at 7,300 square kilometres make BPL the largest landholder in the basin.

The Murray Basin is a proven HMS producer, hosting some of the highest unit value deposits globally, with Iluka and Cristal also active in the region.

The Murray Basin Mineral Sands Province showing selected deposits.

BPL has taken an anti-cyclical approach, picking up tenements at a time of low titanium and zircon prices with the majors retreating.

This pegging followed a comprehensive data review which identified areas where mineralisation had been previously been found but considered too small for the majors.

READ: Broken Hill Prospecting adds to mineral sands ground and is the Murray Basin’s largest tenement holder

BPL’s strategy is to upgrade these to resources and then look at a low capital cost staged, sequential development using mobile plant.

Following is an extract from IIR’s report.

Key points

Highly prospective properties: BPL’s holdings are highly prospective for the minerals sought.

This has been confirmed by the HMS occurrences identified in the data compilation in the Murray Basin, and the results of previous base and precious metals, and industrial minerals exploration in the Broken Hill tenements.

Returning value: The 2017 spin-out of Cobalt Blue (one of the best performing IPOs at the time) was a canny market move, and returned significant value to shareholders via the inspecie distribution of COB shares.

At the peak, the COB shares were worth 40 cents per BPL share, and are still worth 14 cents per BPL share.

The company has also realised value through the $3.1 million sale of HMS properties as part of the settlement of litigation.

Low-cost exploration for significant returns in the Murray Basin: Current activities in the Murray Basin are largely involved in the compilation, review and interpretation of historic exploration data, with these low-cost activities identifying quality targets for further work.

Infrastructure rich, recognised mining destinations: The Broken Hill area is historically a major mining area and is well served with infrastructure.

Likewise, the Murray Basin is a proven HMS producer, with the BPL tenement areas generally being well served by infrastructure.

Strong resources markets: This particularly applies to the HMS markets, with these now recovering after a period of low prices.

In addition, cobalt prices are forecast to remain strong for the foreseeable future largely due to the growing demand for batteries for electric vehicles.

Experienced and committed personnel: The company’s personnel have extensive technical

and commercial experience in the resources industry, including in the key target commodities and regions.

Fully funded over the rest of 2018 and steady news flow: The company has a fully funded active exploration, appraisal and development program over the rest of 2018 which will result in a steady news flow.

This is funded by current cash reserves and the obligations of the JV partner at Thackaringa.

Price target of 23 cents/share: Our price target is based on the value of the current projects and the risk-weighted value of payments due on the development of the TCP. Exploration success on the other projects will result in significant upside to this.

SWOT analysis - Strengths

Prospective projects in world-class regions: Both the Broken Hill block and Murray Basin are world-class mineral provinces for their respective resources - the prospectivity of BPL’s holding has been borne out by the results of historic and current exploration.

Creating and returning value: This is particularly relevant to the COB spin-out, which, at the price high of $1.67/share, had created $58.5 million of value for BPL shareholders.

Experienced people with skin in the game: BPL personnel have extensive experience in technical and commercial facets of the resources industry, and in particular have experience pertinent to the company’s projects and strategy.

Mineral sands strategy: The strategy of looking for the ‘cast-offs’ of major companies in a weak mineral sands market looks like it will return good value, with the results starting to show.

It has often been shown that projects that would not meet the size/return hurdle of majors prove to be excellent growth assets for junior companies.

In addition, the proposed low capex production strategy should help ease any financing should there be the decision to develop any of the HMS projects.

TJV tie in with LG International: This could have important ramifications for technology sharing and the financing of the TCP.

LG Chem, an affiliated company, is a major end-user of cobalt in batteries and will require security of supply going forward, with the TCP potentially providing this.

Weaknesses

Mineral sands: This is a market perception issue (and not an issue with the quality of the company’s projects), with mineral sand projects, when in the exploration and resource definition generally only garnering mild interest in the market.

It is only when potential investors can see material progress with regards to development (including offtake and financing) that markets will sit up and take notice.

Highly sensitive TCP: The TCP is highly sensitive to commodity prices, exchange rates and operating costs, which may make it difficult to finance, particularly with the expected $550 million upfront capital.

This was reflected in the market’s reaction to the release of the PFS, with the share price initially falling by 37% on the back of the release, however, it recovered to trade at about 5% below the pre-release price.

Although financially viable at current cobalt prices, and those forecast by CRU, +20% falls in the cobalt price make it a far riskier commercial proposition.

That being said, we may see end users looking to security of supply, and not concentrating so much on the economics of a project.

It also needs to be said that the majority of proposed cobalt projects are high cost and metals price sensitive.

Opportunities

Discovery and resource definition: This is the key opportunity in the properties other than the TCP, with the results of historic exploration and the geological setting highlighting the potential for meaningful HMS resources in the Murray Basin and discovery in the Broken Hill tenements.

Additional resources and consolidation in the TCP: There are significant areas of cobalt mineralisation hosted by other companies in the Broken Hill area, as well as additional discovery potential within the TJV ground.

The addition of extra resources through consolidation or discovery will help the economics of any future cobalt operation, through the extension of mine life and/or increasing throughput.

Other projects: There is the opportunity to pick up additional ground and projects when and if high-quality properties become available.

Threats

Metallurgy: This is the key technical threat/risk at the TCP, with further work, including a pilot plant required to prove up the planned processing route (and in particular product recovery), and to demonstrate that products will meet the specifications of end users.

Permitting: This is a perennial threat for resources projects, however, we see this as not the potential for a failure to permit, but as permitting taking longer than expected.

Financing: This applies to the TCP, which may be difficult to finance, given the relatively high capex and the generally volatile nature of cobalt prices.

Should the project be developed, however, BPL will be immune from the cost of financing, in that it should have no effect on the royalty.

Lack of exploration success: This is self-explanatory, and affects all explorers.

Prices and markets in general: These are constant threats to junior resource companies, and in the case of BPL these are particularly pertinent with regards to HMS and cobalt.

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Fri, 24 Aug 2018 08:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203493/broken-hill-prospecting-has-plenty-of-upside-with-12-month-target-price-of-23-cents-203493.html
<![CDATA[News - Broken Hill Prospecting adds to its extensive exploration portfolio in the Broken Hill district ]]> https://www.proactiveinvestors.com.au/companies/news/203177/broken-hill-prospecting-adds-to-its-extensive-exploration-portfolio-in-the-broken-hill-district-203177.html Broken Hill Prospecting Ltd (ASX:BPL) has been granted three exploration licences in the Broken Hill district of New South Wales, significantly increasing its exposure to this world-class mineral province.

The new tenements cover 209 square kilometres of under-explored ground with numerous base, precious and industrial mineral prospects.

The three new areas augment BPL’s existing rights to base and precious metals at the Thackaringa Cobalt Project with joint venture partner Cobalt Blue Holdings Ltd (ASX:COB).

READ: Broken Hill Prospecting working with JV partner to realise value of major cobalt asset

Furthermore, the new licenses represent a strategic broadening of BPL’s exploration focus in the Broken Hill Region.

Notably, rocks of the Broken Hill Group, which hosts the giant Broken Hill lead-zinc-silver orebody containing 30 million tonnes of lead, 24 million tonnes of zinc, one billion ounces silver and one million ounces gold, are widely distributed across the tenement portfolio with multiple prospects prioritised for further exploration.

Massive cobalt-pyrite mineralisation from the Railway deposit within the Himalaya Formation

BPL managing director and chief executive officer Trangie Johnston said: “Commencement of a multi-faceted exploration program at Broken Hill highlights the unique character of this great mining region and the high-quality targets within our portfolio.

“The application of modern exploration technologies gives us fresh eyes with which to thoroughly assess our ground at Thackaringa and also the three new licences granted to us closer to the Broken Hill line of lode.

“The fact that this is a multi-play for base and precious metals, including cobalt makes the work even more important for our shareholders.”

READ: Broken Hill Prospecting confirms robust pre-feasibility results for Thackaringa Cobalt Project

BPL is now planning a diversified exploration strategy for:

• Base metals (copper, lead, zinc, nickel, cobalt);
• Precious metals (gold and silver); and
• Industrial minerals and non-metallics.

A new era of on-ground exploration will commence at Thackaringa for base and precious metals and to extend known cobalt deposits.

Importantly, numerous polymetallic prospects have already been identified ranging from emerging through to advanced.

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Mon, 20 Aug 2018 11:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203177/broken-hill-prospecting-adds-to-its-extensive-exploration-portfolio-in-the-broken-hill-district-203177.html
<![CDATA[News - Broken Hill Prospecting working with JV partner to realise value of major cobalt asset ]]> https://www.proactiveinvestors.com.au/companies/news/201709/broken-hill-prospecting-working-with-jv-partner-to-realise-value-of-major-cobalt-asset-201709.html Broken Hill Prospecting Ltd (ASX:BPL) is working with joint venture partner Cobalt Blue Holdings Ltd (ASX:COB) to realise the potential of the Thackaringa Cobalt Project to be a world-class cobalt producer.

The partners believe this will be delivered once an optimal process route for the project near Broken Hill is identified.

The Thackaringa Joint Venture (TJV), of which Cobalt Blue is the manager, is working on various processing options for an integrated cobalt production strategy.

Cobalt only processing alternative

These include an alternative ‘cobalt concentrate only’ process as a potential pathway to commercialisation.

This alternative was not addressed in the recently delivered pre-feasibility study (PFS).

READ: Broken Hill Prospecting confirms robust pre-feasibility results for Thackaringa Cobalt Project

The PFS confirmed that the Thackaringa project is of global significance as a sustainable, low-cost source of high purity cobalt sulphate for the battery revolution.

It recommends advancing to a bankable feasibility study (BFS).

In an announcement today BPL said: “As the tenement holder and an active explorer in the Broken Hill region, BPL is delighted with the outcome of the PFS.

“It vindicates the company’s long-held exploration strategy and highlights the ongoing exploration potential of its major assets.”

2% net smelter royalty

As part of the joint venture terms, BPL retains a 2% net smelter royalty on cobalt produced from Thackaringa.

This is anticipated to deliver revenue of around $43 million to $48 million over the life of mine and the company is now evaluating the basis of the PFS royalty and its market value today.

BPL is assessing the PFS to determine whether COB has satisfied the individual stage II milestones of the TJV.

The TJV Management Committee has also appointed an independent expert to review the PFS and this work is expected to be completed by the end of August.

READ: Broken Hill Prospecting advises joint venture partner of cobalt project stage I earn-in

COB can earn an interest up to 100% of the project if it completes a four-stage farm-in.

To do so, COB must commit $10.9 million in project expenditure before June 30, 2020, and pay BPL $7.5 million in cash.

Satisfying the stage II requirements would see COB’s interest increase to 70% from the current 51%.

BPL said that whichever BFS strategy was ultimately adopted, the timeline to delivery would be measured against the TJV contractual obligations and the requirements to demonstrate a bankable project.

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Fri, 27 Jul 2018 16:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201709/broken-hill-prospecting-working-with-jv-partner-to-realise-value-of-major-cobalt-asset-201709.html
<![CDATA[News - Broken Hill Prospecting confirms robust pre-feasibility results for Thackaringa Cobalt Project ]]> https://www.proactiveinvestors.com.au/companies/news/200080/broken-hill-prospecting-confirms-robust-pre-feasibility-results-for-thackaringa-cobalt-project-200080.html Broken Hill Prospecting Ltd (ASX:BPL) has received positive pre-feasibility study results and a maiden ore reserve estimate for the Thackaringa Cobalt Project near Broken Hill in New South Wales.

The company’s joint venture partner Cobalt Blue Holdings Ltd (ASX:COB) has estimated a maiden ore reserve of 46.3 million tonnes at 819 ppm cobalt and a pre-tax net present value (NPV) of $792 million.

COB is the manager of the Thackaringa Joint Venture and can earn an interest up to 100% of the project if it completes a four-stage farm-in.

To do so, COB must commit $10.9 million in project expenditure before 30 June 2020 and pay BPL $7.5 million in cash.

BPL is further entitled to receive a 2% net smelter royalty on all cobalt produced from the Thackaringa tenements for the life of mine.

READ: Cobalt Blue Holdings’ PFS justifies proceeding towards commercial development of Thackaringa

BPL managing director and chief executive officer Trangie Johnston said: “Cobalt Blue’s PFS demonstrates a robust project with excellent commercial metrics and potential for improvements as the project moves through bankable feasibility studies.

“The projected commercial return to BPL from its royalty under the Thackaringa Joint Venture can now be assessed with some accuracy. This is an excellent outcome for BPL shareholders.

“BPL is conducting its technical review of the PFS and assessing COB’s claims to have met its $2.5 million expenditure obligations under the TJV Stage 2 Hurdles”

Continued success in return of value to BPL shareholders

BPL’s successful spin‐off of COB was completed in February 2017, with BPL’s shareholders receiving 35 million COB shares, equivalent to 37% of COB’s issued shares under the IPO.

The PFS confirms the Thackaringa Cobalt Project as a sustainable, low‐cost source of high purity cobalt sulphate for the battery revolution and recommends advancement to bankable feasibility studies.

BPL is continuing to benefit from its exposure to the Thackaringa Cobalt Project as a joint venture participant and royalty-holder with the $7.5 million payment due on a decision to mine.

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Wed, 04 Jul 2018 11:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200080/broken-hill-prospecting-confirms-robust-pre-feasibility-results-for-thackaringa-cobalt-project-200080.html
<![CDATA[News - Broken Hill Prospecting granted trading halt pending cobalt project PFS ]]> https://www.proactiveinvestors.com.au/companies/news/199910/broken-hill-prospecting-granted-trading-halt-pending-cobalt-project-pfs-199910.html Broken Hill Prospecting Ltd (ASX:BPL) has been granted a trading halt pending the release of a pre-feasibility study on the Thackaringa Cobalt Project of joint venture partner Cobalt Blue Holdings Ltd (ASX:COB).

The ASX-granted halt will remain in place until the earlier of the start of normal trading on Wednesday, 4 July 2018, or when the announcement is released to the market.

BPL shares last traded at 10 cents.

READ: Broken Hill Prospecting undervalued despite exposure to cobalt, heavy mineral sands and base metals

The announcement will also include a maiden ore reserve statement for the project at Broken Hill in far west New South Wales.

A successful PFS will see Cobalt Blue’s beneficial interest in the project increase to 70% from 51% as part of stage II earn-in requirements with BPL.

 

Earlier this year BPL confirmed that Cobalt Blue had retained its 51% interest after completing stage I earn-in requirements, including a resource upgrade.

The Thackaringa resource is 72 million tonnes at 852 ppm cobalt, 9.3% sulphur and 10% iron for 61,000 tonnes of contained cobalt at a 500 ppm cut-off.

BPL remains the registered holder of the tenements until the farm-in is complete.

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Mon, 02 Jul 2018 12:26:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199910/broken-hill-prospecting-granted-trading-halt-pending-cobalt-project-pfs-199910.html
<![CDATA[News - Broken Hill Prospecting adds to mineral sands ground and is the Murray Basin’s largest tenement holder ]]> https://www.proactiveinvestors.com.au/companies/news/196509/broken-hill-prospecting-adds-to-mineral-sands-ground-and-is-the-murray-basins-largest-tenement-holder-196509.html Broken Hill Prospecting Ltd (ASX:BPL) has been granted four new exploration licences which firmly establishes its position as the largest mineral sands tenement holder in the Murray Basin.

The new licences in Victoria mark the expansion of BPL’s interest across the broader Murray Basin heavy mineral sands (HMS) province.

Shares are up almost 23% to 13.5 cents.

READ: Broken Hill Prospecting is undervalued despite exposure to cobalt, heavy mineral sands and base metals

Managing director Trangie Johnston said: “Mineral sands commodity prices continue to perform well and we are seeing improved financial performance from existing mineral sands producers.

“The granting of four new exploration tenements with walk-up resource targets places the company in a strong position.

“We now have the critical mass to accelerate these projects at a time of strong underlying market conditions.”

Each new tenement areas hosts multiple parallel mineralised strandlines which in some instances persist over several kilometres of strike.

New tenement in South Australia

Another exploration licence has also been granted in South Australia, along strike from Tararra in New South Wales.

The company has started an in-depth technical data compilation, validation and infill drill program design on the new tenement areas.

These areas are located near key infrastructure and are characterised by strandline-type mineralisation encountered in reconnaissance drill traverses.

Mineralisation persists up to 15 kilometres in strike in some areas with overburden varying between 5 and 20 metres in thickness.

The new tenements complement recently acquired holdings in the Euston area of NSW, on the north side of the Murray River.

READ: Broken Hill Prospecting advises joint venture partner of cobalt project stage I earn-in

BPL now holds about 7,300 square kilometres of ground prospective for mineral sands.

Exploration has identified multiple high-grade low-tonnage heavy mineral sands strandline deposits to support BPL’s mobile mining business model.

To support this concept, BPL aims to establish a sustainable pipeline of high-grade, relatively low-tonnage HMS deposits amenable to processing through mobile plant equipment.

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Tue, 08 May 2018 14:51:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196509/broken-hill-prospecting-adds-to-mineral-sands-ground-and-is-the-murray-basins-largest-tenement-holder-196509.html
<![CDATA[News - Broken Hill Prospecting advises joint venture partner of cobalt project stage I earn-in ]]> https://www.proactiveinvestors.com.au/companies/news/195433/broken-hill-prospecting-advises-joint-venture-partner-of-cobalt-project-stage-i-earn-in-195433.html Broken Hill Prospecting Ltd (ASX:BPL) has advised Cobalt Blue Holdings Ltd (ASX:COB) that COB has completed the stage I earn-in of the Thackaringa Cobalt Project Joint Venture.

This entitles COB to retain its stage I 51% beneficial ownership of the project near Broken Hill in Far West New South Wales.

BPL holds the balance of the beneficial interest along with 100% of the legal title.

READ: Broken Hill Prospecting is undervalued despite exposure to cobalt, heavy mineral sands and base metals

Completion of this stage was dependent upon COB delivering a major resource upgrade, which was completed a month ago.

The global JORC resource estimate is now 72 million tonnes at 852 ppm cobalt, 9.3% sulphur and 10% iron for 61,500 tonnes of contained cobalt at a 500 ppm cobalt cut-off.

Technical and financial milestones have been satisfactorily assessed by BPL resulting in the completion of stage I and notification to COB.

WATCH NOW: "2018 is going to be a big year" for Broken Hill Prospecting

BPL’s managing director Trangie Johnston said: “The major resource upgrade at Thackaringa in March was a key step underpinning completion of stage I of the Thackaringa JV.

“As this world-class project develops momentum, we are delighted to see an increased level of external investor interest demonstrated by the recent transaction with LG International.

“BPL holds a significant direct interest in the Thackaringa project.

“It holds long-term rights, including a right to payment of $7.5 million, a royalty interest and rights to intellectual property developed by the Thackaringa Joint Venture.”

Additional milestones

Additional project milestones have to be met by specific dates for COB to further increase its interest.

The joint venture partners are now moving towards completion of a pre-feasibility study for the project.

If met by June 30, 2018, this will allow COB to move to 70% beneficial interest in the project.

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Fri, 20 Apr 2018 15:20:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195433/broken-hill-prospecting-advises-joint-venture-partner-of-cobalt-project-stage-i-earn-in-195433.html
<![CDATA[Media files - "2018 is going to be a big year" for Broken Hill Prospecting ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9071/-2018-is-going-to-be-a-big-year-for-broken-hill-prospecting-9071.html Tue, 17 Apr 2018 15:07:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9071/-2018-is-going-to-be-a-big-year-for-broken-hill-prospecting-9071.html <![CDATA[News - Broken Hill Prospecting is undervalued despite exposure to cobalt, heavy mineral sands and base metals ]]> https://www.proactiveinvestors.com.au/companies/news/194478/broken-hill-prospecting-is-undervalued-despite-exposure-to-cobalt-heavy-mineral-sands-and-base-metals-194478.html Broken Hill Prospecting Ltd (ASX:BPL) remains undervalued despite strong recent news flow from its flagship cobalt joint venture near Broken Hill and its position as the largest mineral sands tenement holder in the prolific Murray Basin.

Add to this a number of copper/base metals prospects around the established far west New South Wales mining stronghold of Broken Hill and it is not difficult to see that the company’s trading level of around 14 cents represents value.

Strong news flow to continue

Recent news from the Thackaringa Cobalt Project of joint venture partner Cobalt Blue Holdings Ltd (ASX:COB) has seen share prices increase appreciably from around 3 cents in early October 2017.

However, considering that COB is trading at around $1.40 a little over 12 months since it was spun out of BPL, it can be ascertained that the market hasn’t fully appreciated the value connection.

READ: Broken Hill Prospecting readies aggressive growth and value-adding strategy in 2018

Managing director Trangie Johnston said: “We have 49% of the project at the moment and COB has 51%.

“We also have a 2% NSR on all future cobalt production and there are a number of key cash payments due to us in coming years that will really put a floor under this company and leverage us to the next stage.

“I have been in this industry for some time and have seen multiple cycles, and where we are positioned now, I think we are going to see a very exciting future for the company,” he said.

READ: Broken Hill Prospecting shares run higher on Thackaringa cobalt resource upgrade, up 39%

The joint venture partners recently announced a resource upgrade at the cobalt project, which now has 72 million tonnes at 852 parts per million cobalt, 9.3% sulphur and 10% iron for 61,000 tonnes of contained cobalt.

Importantly, 72% of this is in the indicated category.

Johnston said: “This upgrade comes at a time when cobalt prices have been experiencing large gains on world markets, recently hitting $US88,000 per tonne.

“Both the increase in cobalt resource size at Thackaringa and the cobalt price combine to make this a valuable and strategic development of global magnitude.

“It adds significantly to BPL’s assets both in terms of our ongoing participation in the JV and the increased potential for future royalty steams.”

READ: Broken Hill Prospecting and Cobalt Blue form cobalt alliance with LG International, shares jump 30%

The partners subsequently entered an international strategic partnership with LG International, the resources investment arm of LG Corp (KRX:003550), which Johnston said was a major win for the project.

LGI will provide capital and technical assistance for the JV to make a high-purity battery-grade cobalt sulphate.

To achieve this, LGI will cooperate with LG Chem, the world’s fourth-largest electric vehicle (EV) battery maker which has strong technical leadership in development of next-generation batteries, in particular for fixed storage and EVs.

Pre-feasibility study next catalyst

The next major catalyst for the JV will be the release of a pre-feasibility study (PFS), which is due for completion during the current quarter.

Base metals prospects outside the cobalt deposits at Thackaringa.

“It will be the first time the marketplace can see the economics of the project,” Johnston said, “and work done to date is indicating that the market will be surprised and impressed.”

The managing director, who was promoted to the role in January 2018 after serving as chief executive, said the spin-off of Cobalt Blue in February 2017 had been a major success.

“To unlock the value of the Thackaringa Cobalt Project has been a big goal of ours over the last few years.

“We could see the way the market was heading and the spin-out and IPO of COB has been highly successful.

“BPL shareholders have done extremely well out of that corporate restructure and we are very pleased to see how COB has driven the asset to its current position and it’s only going to get better.”

After completing the resource upgrade, COB has submitted a draft geological report to BPL, serving notice that COB believes it has fulfilled its stage I JV requirements.

Completion of the PFS forms part of stage II milestones which will increase COB’s beneficial interest to 70%.

Largest Murray Basin tenement portfolio

Aside from the cobalt project, BPL has the largest tenement portfolio in the world-class Murray Basin, focusing on high-grade, low-tonnage, shallow heavy mineral sand (HMS) deposits.

BPL’s extensive HMS tenement portfolio in the Murray Basin.

After a large basin-wide prospectivity analysis, the company has picked up new ground, which is going through applications at the moment.

Maiden resource estimates for the Jaws and Gilligan deposit were completed last year and the company now has more than 100 million tonnes of heavy mineral (HM) sands resource.

The Jaws inferred resource estimate is 63 million tonnes at 1.9% HM and 5% clay, containing 1.2 million tonnes of HM with an assemblage of 10% zircon, 29% rutile and 10% total ilmenite.

The Gilligans inferred resource is 50 million tonnes at 1.6% HM and 2% clay for 800,000 tonnes of HM with an assemblage of 9% zircon, 23% rutile and 8% total ilmenite.

“BPL is very much focused on a unique proprietary knowledge,” Johnston said.

“We have developed a new business model based on low capex, low opex operations focused on the shallow, high-grade resources that the big players such as Iluka Resources Limited (ASX:ILU) and Cristal Mining have left behind.

“The company is coming in with a new set of eyes and a new business model that is much more flexible with a lower entry cost to get moving into production.

Modular mobile technology advancements

“Mineral sands has typically been a majors game but there have been some recent developments in technology to extract the sands.

“Modular technology is a lot more mobile which means you do not have to look at the fixed plant, big capital investments that the majors have had to go through.

“What was once deemed uneconomic by the majors is now very much on the radar for us,” he said.

Expanding base metals footprint

BPL is also expanding its base metals footprint in the Broken Hill region outside the base metals rights it owns at the Thackaringa project and is awaiting applications for three exploration licences.

Tenements under application are prospective for base and precious metals.

Johnston said: “Our expanded footprint in the Broken Hill region has picked up some interesting copper plays along the Line of Lode strike from Broken Hill itself.

“We are very keen to follow these up in the near-term as well as continuing our own work at Thackaringa.”

The Broken Hill NW and Main Line licences are viewed as prospective for base metals, with the latter having been explored for copper in the past.

The Triple Chance licence application region is 25 kilometres from Broken Hill, and should the licence be granted, the company will be targeting base and precious metals.

Johnston’s challenge at the helm is to optimise the company’s performance and keep adding value.

“Late last year the board and I formulated a blueprint for the growth of the company through 2018.

“I’m looking forward to delivering against that strategy and positioning BPL, over time, to become a mid-tier, multi-commodity, multi-project miner.”

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Mon, 09 Apr 2018 15:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194478/broken-hill-prospecting-is-undervalued-despite-exposure-to-cobalt-heavy-mineral-sands-and-base-metals-194478.html
<![CDATA[News - Broken Hill Prospecting and Cobalt Blue form cobalt alliance with LG International, shares jump 30% ]]> https://www.proactiveinvestors.com.au/companies/news/193656/broken-hill-prospecting-and-cobalt-blue-form-cobalt-alliance-with-lg-international-shares-jump-30-193656.html Broken Hill Prospecting Ltd (ASX:BPL) and Cobalt Blue Holdings Ltd (ASX:COB) have entered an international strategic partnership for their cobalt project near Broken Hill in New South Wales.

The Thackaringa Cobalt Project Joint Venture partners will be working with LG International (LGI), the resources investment arm of LG Corp (KRX:003550).

Under the new partnership, LGI will provide capital and technical assistance for the joint venture to make a high-purity battery-grade cobalt sulphate.

LGI will work with EV battery maker

To achieve this, LGI will cooperate with LG Chem, the world’s fourth-largest electric vehicle (EV) battery maker.

LG Chem has strong technical leadership in the development of next-generation batteries, in particular for fixed storage and EVs.

Shares were up 30% in late trading to 13 cents and have more than doubled since early March.

“Major win for Thackaringa”

Broken Hill Prospecting managing director Trangie Johnston said: “The strategic alliance with LGI is a major win for the Thackaringa Cobalt Project and our board welcomes LGI’s partnership.

“The LG Group brings valuable expertise in product development and other disciplines to the joint venture and is a significant milestone along the road to developing this world-class cobalt resource.”

Cobalt Blue has executed a binding term sheet with LGI to raise US$6 million at A$1.10 per share by Monday, April 16, 2018.

READ: Broken Hill Prospecting readies aggressive growth and value-adding strategy in 2018

LG International executes resources investment strategy for the LG Group and has extended its focus to include the raw materials of lithium-ion battery construction such as cobalt, nickel and lithium.

It operates in close cooperation with LG Chem to secure these ‘green minerals’ for the LG Group.

“Commercial interest advanced”

"BPL’s commercial interest in the Thackaringa project is significantly advanced by the involvement of LGI,” Johnston said.

“We look forward to working with both partners to deliver the project as expeditiously as possible.”

BPL completed a spin-off of Cobalt Blue in February 2017, with investors seeking shares and options exceeding the $10 million maximum being offered.

Realising value from cobalt project

Johnston said the IPO was an important initiative for the company to realise significant value from its then wholly-owned Thackaringa Cobalt Project.

Shareholders received 35 million COB shares, equivalent to 37% of the new entity, the value of which is now about $50 million based on COB’s current share price.

BPL holds legal title to the Thackaringa leases under the joint venture and COB can earn up to 100% of the cobalt project if it completes a four-stage farm-in.

It must commit $10.9 million in project expenditure before June 30, 2020, and pay BPL $7.5 million in cash.

BPL will be entitled to receive a 2% net smelter royalty on all cobalt produced from the tenements.

Subject to COB completing stage I milestones, COB has a 51% beneficial interest in the cobalt project with BPL retaining a 49% beneficial interest.

READ: Cobalt Blue delivers resource upgrade at Thackaringa Project, paving the way for 70% stage II earn in

For COB to retain 51%, key deliverables by April 1, 2018, are a 40 million tonne indicated resource sufficient to support a prefeasibility study (PFS) to JORC 2012 standard and certain expenditure obligations.

This week COB delivered a resource of 72 million tonnes at 852 parts per million cobalt, 9.3% sulphur and 10% iron for 61,000 tonnes of contained cobalt, 72% of which is in the indicated category.

A draft geological report has been submitted to BPL, serving notice that COB believes it has fulfilled its stage I requirements.

The PFS is due by June 30, 2018, which forms part of stage II milestones for COB to earn up to a 70% beneficial interest.

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Fri, 23 Mar 2018 09:54:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193656/broken-hill-prospecting-and-cobalt-blue-form-cobalt-alliance-with-lg-international-shares-jump-30-193656.html
<![CDATA[News - Broken Hill Prospecting shares run higher on Thackaringa cobalt resource upgrade, up 39% ]]> https://www.proactiveinvestors.com.au/companies/news/193341/broken-hill-prospecting-shares-run-higher-on-thackaringa-cobalt-resource-upgrade-up-39-193341.html Broken Hill Prospecting Ltd (ASX:BPL) shares have jumped today after a resource upgrade at the Thackaringa Cobalt Project near Broken Hill in New South Wales.

The upgrade comprises a 31% increase in total tonnes and a 23% increase in contained cobalt to 61,500 tonnes.

Significantly, using current cobalt prices of US$88,000 per tonne, this cobalt deposit has a gross sale value of over US$5.4 billion.

Improved confidence with 72% of the resource in the Indicated category

The global JORC resource estimate is now 72 million tonnes at 852 ppm cobalt, 9.3% sulphur and 10% iron for 61.500 tonnes of contained cobalt at a 500 ppm cobalt cut-off.

The upgrade comprises a 31% increase in total tonnes and a 23% increase in contained cobalt compared with the June 2017 JORC estimate.

This represents a major step forward in the project’s viability with 72% of the updated resource classified as Indicated, which reflects improved geological confidence.

READ: Broken Hill Prospecting readies aggressive growth and value-adding strategy in 2018

Trangie Johnston, managing director, said: “This resource upgrade comes at a time when cobalt prices have been experiencing large gains on world markets, hitting $US88,000 per tonne last week.

“Both the increase in the cobalt resource size at Thackaringa and the cobalt price combine to make this a valuable and strategic development of global magnitude.

“It adds significantly to BPL’s assets both in terms of our ongoing participation in the JV and the increased potential for future royalty steams.

“The prospectivity of our Broken Hill leases has been also enhanced by the recent exploration success in identifying further occurrences of Broken Hill style mineralisation.”

Cobalt Blue joint venture continues to prove a major success

Thackaringa is held in joint venture between BPL and Cobalt Blue Holdings Ltd (ASX:COB).

The joint venture has been a major success for BPL, whose goal it has been to unlock the value of the project over the last few years.

BPL was able to identify the market opportunity and elected to spin-out and IPO Cobalt Blue.

As a result, BPL shareholders have and continue to see the benefits of the corporate restructure and how Cobalt Blue advanced the asset.

More value-add milestones upcoming for Thackaringa

BPL expects to see more major upgrades in terms of visibility of this project in the near-term.

Over the next few months, the pre-feasibility study (PFS) is expected to be complete.

Significantly, this will provide the first look at forecast economics for the project.

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Mon, 19 Mar 2018 11:15:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193341/broken-hill-prospecting-shares-run-higher-on-thackaringa-cobalt-resource-upgrade-up-39-193341.html
<![CDATA[News - Broken Hill Prospecting and Cobalt Blue enter trading halt ahead of cobalt resource upgrade ]]> https://www.proactiveinvestors.com.au/companies/news/193191/broken-hill-prospecting-and-cobalt-blue-enter-trading-halt-ahead-of-cobalt-resource-upgrade-193191.html Broken Hill Prospecting Ltd (ASX:BPL) and Cobalt Blue Holdings Ltd (ASX:COB) have both been granted trading halts by the ASX this morning.

The two company's shares will remain halted pending the release of a Thackaringa resource upgrade presently being finalised with various third‐party consultants.

Thackaringa is a growing cobalt deposit

The world-class Thackaringa Cobalt Project in New South Wales has been capturing investors attention on a global scale thanks to a surging cobalt price.

The LME cobalt price is over US$84,000 a tonne currently, or 160% higher than where it began 2017.

The current JORC resource stands at 33.1 million tonnes of inferred resource at 833 ppm inferring ~27,000 tonnes of contained cobalt.

This would be worth over US$2.2 billion at spot market prices.

Pre-feasibility study to be complete after the resource upgrade

Cobalt Blue expects to complete the pre-feasibility study (PFS) following the resource upgrade by mid-year.

A bankable feasibility study will follow and this is scheduled for delivery in mid-2019.

READ: Cobalt Blue reaches new 12-month high on back of compelling cobalt story

Thackaringa is held in joint venture between Cobalt Blue and Broken Hill Prospecting.

The joint venture structure has Broken Hill holding 100% legal interest and 49% beneficial interest with Cobalt Blue holding the remaining 51% beneficial interest.

Cobalt Blue was spun out of Broken Hill to fully focus on the cobalt potential of Thackaringa.

Subject to earn in milestones, Cobalt Blue can increase its beneficial holding and ultimately earn the legal title to the project.

 

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Thu, 15 Mar 2018 09:25:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193191/broken-hill-prospecting-and-cobalt-blue-enter-trading-halt-ahead-of-cobalt-resource-upgrade-193191.html
<![CDATA[News - Broken Hill Prospecting readies aggressive growth and value-adding strategy in 2018 ]]> https://www.proactiveinvestors.com.au/companies/news/192474/broken-hill-prospecting-readies-aggressive-growth-and-value-adding-strategy-in-2018-192474.html Broken Hill Prospecting Ltd (ASX:BPL) remains under the radar following the spin-out of Cobalt Blue Ltd (ASX:COB) just over a year ago.

The spin-off delivered $8.1 million to Broken Hill shareholders via an in specie distribution, which is now valued at circa $25 - $30 million for those who retained Cobalt Blue equity.

Since listing, Cobalt Blue shares have rallied 240% to last trade at $0.67, and recently hit an all-time-high of $0.89.

The share price of Cobalt Blue has been driven by the company advancing technical studies at the world class Thackaringa Cobalt Project in New South Wales, and the surging cobalt price.

The LME cobalt price is over US$80,000 a tonne currently, or about 150% higher than just one year ago.

Broken Hill and Cobalt Blue joint venture

The joint venture structure currently has Broken Hill holding 100% legal interest and 49% beneficial interest in Thackaringa, with Cobalt Blue holding the remaining 51% beneficial interest.

Subject to earn in milestones, Cobalt Blue can maintain its current beneficial holding and increase that holding, and ultimately earn the legal title to the project. 

The joint venture provides major upside exposure for Broken Hill, as detailed:

- The $10.9 million earn-in is underway by Cobalt Blue;
- Broken Hill will receive $7.5 million cash on development of the project;
- Broken Hill also to receive a 2% net smelter return royalty; and
- Broken Hill retains base and precious metals rights at Thackaringa.

Benefits for Thackaringa include first class infrastructure in place, a pro-mining local community and supportive government.

The next key news flow from the project by Cobalt Blue will include an increase in the confidence of the resource to the Indicated category, and a Pre-Feasibility Study (PFS), both expected in the first half of 2018.

The PFS has the potential to introduce Thackaringa as a world class asset, and a Bankable Feasibility Study is expected to follow a year later.

Cobalt Blue is the only primary cobalt play listed on the ASX, with the company's goal to become a top five global cobalt supplier producing 20,000 tonnes per annum of cobalt sulphate with a greater than 20 year mine life.

Broken Hill’s exposure to success at Thackaringa includes the 2% net smelter return royalty on cobalt production; this royalty has the potential to be a major earner for the company over many years and it is anticipated that a line of sight to the dollar value of that royalty and it’s NPV will be developed in coming months.

Broken Hill's enterprise value

Broken Hill has a proven history of monetising assets, such as the Cobalt Blue example, and the recent divestment of non-core mineral sands assets for a $3.1 million cash injection.

The company last traded at $0.062, for a market capitalisation of around $9 million.

With cash of $2.9 million at the end of December 2017, and no debt, this positions the company to focus on value-added initiatives without an equity raising.

These metrics alone provide an enterprise value in the $6 million range, which is considered by the company to significantly undervalue its projects.

Apart from the Thackaringa project exposure, Broken Hill also holds:

- The largest tenement portfolio in the world class Murray Basin, focussing on high-grade, low-tonnage, shallow heavy mineral sand (HMS) deposits with high value mineral assemblages. New tenement applications are nearing approval and an extensive exploration program for all tenements to commence during the March 2018 quarter.

- A number of new base, precious and industrial mineral tenement applications in the Broken Hill area, which are nearing approval. The company has utilised it’s on ground experience in the Broken Hill area to identify and secure these new projects and an extensive exploration program is to commence during the March 2018 quarter.

Broken Hill has a tight register, with board and management holding over a third of the 147 million shares on issue.

Adding interest, the company is also evaluating acquisition opportunities.

Broken Hill’s chief executive and managing director, Trangie Johnston, will drive the company’s aggressive growth and value-adding strategy in 2018.

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Fri, 02 Mar 2018 11:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192474/broken-hill-prospecting-readies-aggressive-growth-and-value-adding-strategy-in-2018-192474.html
<![CDATA[News - Broken Hill Prospecting pursues diversification strategy with application for three licences ]]> https://www.proactiveinvestors.com.au/companies/news/190425/broken-hill-prospecting-pursues-diversification-strategy-with-application-for-three-licences-190425.html Broken Hill Prospecting Ltd’s (ASX:BPL) application for three exploration licences in the Broken Hill region is consistent with its strategy of diversifying the group’s business.

While this involves multi-commodity exposure, the group remains focused on the Broken Hill region, and granting of these applications would increase its exposure to the area.

From a broader perspective, the company is looking to secure a number of under-explored base, precious and industrial mineral prospects.

Management expects the applications to be granted during the first quarter of 2018.

Licences mainly prospective for base metals

The Broken Hill NW and Main Line licences are viewed as prospective for base metals, with the latter having been explored for copper in the past.

The Triple Chance licence application region is 25 kilometres from Broken Hill, and should the licence be granted, the company will be targeting base and precious metals.

READ: Broken Hill Prospecting backs Trangie Johnston after successful 2017

Trangie Johnston, managing director, said: “We want a larger footprint in the world-class Broken Hill Region.

“We aim to advance our vision that modern exploration techniques and fresh eyes, such as those that are being used at the Thackaringa Cobalt Project, will provide new rewards for shareholders."

Acquisition of new tenements will not require capital raising

Broken Hill Prospecting has sufficient cash to acquire the licenses and conduct the required work, negating the need for a dilutive capital raising.

The company’s other assets include the advanced stage Murray Basin heavy mineral sands project and exposure to the Thackaringa Cobalt Project in joint venture with Cobalt Blue (ASX:COB). 

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Tue, 23 Jan 2018 10:37:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190425/broken-hill-prospecting-pursues-diversification-strategy-with-application-for-three-licences-190425.html
<![CDATA[News - Broken Hill Prospecting backs Trangie Johnston after successful 2017 ]]> https://www.proactiveinvestors.com.au/companies/news/190204/broken-hill-prospecting-backs-trangie-johnston-after-successful-2017-190204.html Broken Hill Prospecting Ltd (ASX:BPL) has appointed current chief executive Trangie Johnston to the position of managing director.

Johnston will drive the company’s aggressive growth and value-adding strategy in 2018 after multiple successes in 2017 that saw shares double.

Creagh O’Connor, chairman, said: “Trangie’s appointment as managing director of BPL is the logical progression in his role with the company.

“He has played a pivotal role in BPL’s major value-adding initiatives in 2017 such as the Cobalt Blue spin-off and expansion of our mineral sands portfolio within the Murray Basin.” 

Exploration in Broken Hill area key objective in 2018

The company’s key objectives in the early part of 2018 are the acceleration of base, precious and industrial metals exploration in the Broken Hill area and advancement of its advanced mineral sands project.

READ: Broken Hill Prospecting's shares positively re-rated

Shares in the company are trading up 70% over the past month after rallying strongly in late December.

BPL delivered over $30 million in equity value-add in 2017 through the spin-out of Cobalt Blue Holdings Ltd (ASX:COB).

It also generated $3.1 million in cash through the divestment of non-core mineral sand assets.

Johnston intends to keep adding value in 2018

Trangie Johnston, chief executive and managing director, said: “My challenge is to optimise BPL’s performance and keep adding value.

“Late last year the board and I formulated a blueprint for the growth of the Company through 2018 and we addressed that in our 2017 annual general meeting presentation.

“I’m looking forward to delivering against that strategy and positioning BPL, over time, to become a mid-tier, multi-commodity, multi-project miner.”

Thackaringa joint venture with Cobalt Blue Holdings

Johnston will continue playing an active role in the Thackaringa joint venture with Cobalt Blue.

Thackaringa is subject to a farm-out agreement whereby Cobalt Blue can earn 100% in four stages by committing $10.9 million expenditure and $7.5 million in cash.

In addition, BPL will receive a 2% net smelter royalty on all cobalt produced from the Thackaringa tenements for the life of mine.

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Thu, 18 Jan 2018 12:24:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190204/broken-hill-prospecting-backs-trangie-johnston-after-successful-2017-190204.html
<![CDATA[News - Broken Hill Prospecting's shares positively re-rated ]]> https://www.proactiveinvestors.com.au/companies/news/189306/broken-hill-prospecting-s-shares-positively-re-rated-189306.html Broken Hill Prospecting Ltd's (ASX:BPL) shares have been receiving some end of year buying momentum, last trading at $0.105, or double their value from just a fortnight ago.

BPL received an ASX speeding ticket in the form of a price query, and the company replied that it was not aware of any information that could explain the recent trading.

The company did refer back to its December AGM presentation, which highlighted achievements during 2017.

BPL spun-out Cobalt Blue Holdings Ltd (ASX:COB) at the start of the year which delivered $8.1 million to shareholders via an in specie distribution, which is now valued at well over $30 million for those who retained Cobalt Blue equity.

Cobalt Blue shares have quadrupled to around $0.80 in the past two months.

During 2017 BPL divested a non-core asset for a $3.1 million cash injection, further highlighting its ability to monetise assets.

BPL is in a joint venture with Cobalt Blue at Thackaringa, and retains rights to all lead, zinc, copper, silver and gold mineralisation.

The company also has mineral sands assets in the Murray Basin.

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Thu, 28 Dec 2017 11:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189306/broken-hill-prospecting-s-shares-positively-re-rated-189306.html
<![CDATA[News - Broken Hill Prospecting Ltd extends Share Purchase Plan as applications continue ]]> https://www.proactiveinvestors.com.au/companies/news/151058/broken-hill-prospecting-ltd-extends-share-purchase-plan-as-applications-continue-70112.html Broken Hill Prospecting Ltd (ASX:BPL) has extended the closing date of its Share Purchase Plan (SPP) as the company continues to receive application enquiries from shareholders.

The offer will now close on Friday 12th August 2016.

The SPP is priced at $0.081, and allows shareholders to buy up to $15,000 worth of shares.

Funds will be used to advance the 100% owned Thackaringa Cobalt Project near Broken Hill.

The cobalt deposit at Thackaringa is contained in a pyritic rock, which adds the possibility for the co-production of sulphuric acid from any future mining activities.

Sulphuric acid supply in Australia for mining and agricultural purposes is limited and significant quantities are imported.

The large, near-surface deposits at Thackaringa also make the project suitable for large-scale, open cut mining methods.


Use of funds

Funds raised under the SPP will be used to advance Thackaringa by:

- undertaking drilling programs in respect of its mineral resources;
- undertaking metallurgical testing programs;
- supporting marketing studies on cobalt and sulphuric acid production;
- undertaking economic studies and developing a variety of business models to explore the
processing options for the ore; and
- providing the company with working capital.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Fri, 29 Jul 2016 09:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151058/broken-hill-prospecting-ltd-extends-share-purchase-plan-as-applications-continue-70112.html
<![CDATA[News - Broken Hill Prospecting Ltd opens SPP to advance Thackaringa Cobalt Project ]]> https://www.proactiveinvestors.com.au/companies/news/151057/broken-hill-prospecting-ltd-opens-spp-to-advance-thackaringa-cobalt-project-69621.html Broken Hill Prospecting Ltd (ASX:BPL) will complete its capital raising program with a share purchase plan (SPP) to advance the 100% owned Thackaringa Cobalt Project near Broken Hill.

The SPP will offer shareholders the opportunity to purchase additional stock priced at $0.081 and will close 2 August, 2016.

The SPP follows the recently completed placement which raised $992,000.

Cobalt is a necessary metal for the production of the latest generation, high density lithium-ion batteries.

Due to its high run-time properties, the use of cobalt has risen dramatically as portable lithium-ion battery usage accelerates and electric vehicles become a reality.

Funds will be partly used to undertake a drilling program at Thackaringa.


Thackaringa Cobalt Project

The Thackaringa Cobalt Project is strategically located 25 kilometres south-west of Broken Hill within New South Wales, adjacent to the main transcontinental railway line.

Since commencing its assessment in 2011, BPL’s exploration activities have more than doubled the resource to 35.7 million tonnes at 1.85 pounds per tonne cobalt.

The cobalt deposit at Thackaringa is contained in a pyritic rock, which adds the possibility for the co-production of sulphuric acid from any future mining activities.

Sulphuric acid supply in Australia for mining and agricultural purposes is limited and significant quantities are imported.

The large, near-surface deposits at Thackaringa also make the project suitable for large-scale, open cut mining methods.


Use of funds

Funds raised under the SPP will be used to advance Thackaringa by:

- undertaking drilling programs in respect of its mineral resources;
- undertaking metallurgical testing programs;
- supporting marketing studies on cobalt and sulphuric acid production;
- undertaking economic studies and developing a variety of business models to explore the
processing options for the ore; and
- providing the company with working capital.


Recent placement

The company recently raised circa $1 million through the placement of shares at $0.08 to sophisticated and professional investors.

Placement shares came with one free attaching listed option for every two shares issued with an exercise price of $0.08.

Proceeds from the placement are to be used to:

- update the scoping study on Thackaringa;
- advance the pre-feasibility study on the Copi Heavy Mineral Sands Project;
- expand exploration activities surrounding the Copi North and Magic Heavy Mineral deposits; and
- for working capital purposes.


Advanced mineral sands projects

BPL has been progressing two of their five high grade titanium-zirconium deposits being the Copi North and Magic Heavy Mineral Sands deposits with their partners Relentless Resources.

These deposits are located south of Broken Hill in western NSW have been extensively explored and drill tested by other parties in the past.

Project economics for the development of Copi North are already compelling considering the resource is shallow and nearly twice the head grade of operating nearby mines.

A scoping study was completed in mid February, 2016 for mine development of the Copi North.

Recent extensional drilling saw tonnages increase to 14.2 million tonnes at 6.6% HM and the Indicated category rise from hosting 60% to 77% of the Mineral Resource.

The Copi North HMS deposit remains open to the northwest and an exploration target has been defined for 2 kilometres along strike from the new resource estimate.

The exploration target stands at 0.5 to 1.0 million tonnes grading 2-5% total heavy minerals.

The resource extension is significantly closer to surface than the main Copi North deposit.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 05 Jul 2016 10:04:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151057/broken-hill-prospecting-ltd-opens-spp-to-advance-thackaringa-cobalt-project-69621.html
<![CDATA[News - Broken Hill Prospecting Ltd to lift cash position ]]> https://www.proactiveinvestors.com.au/companies/news/151056/broken-hill-prospecting-ltd-to-lift-cash-position--69430.html Broken Hill Prospecting Ltd (ASX:BPL) recently raised about $1 million through a placement of shares to sophisticated and professional investors at $0.08 each.

The company will open a Share Purchase Plan with the opportunity to subscribe for shares to the value of A$2,000, A$3,000, A$5,000, A$7,500, A$12,500 or up to the maximum of A$15,000.

The issue price will be $0.081, based on a weighted average price.

BPL shares have rocketed as investors re-rated the stock from $0.027 in April in recognition of its mineral sands project upside and ascribing a higher valuation to the cobalt assets.


Fund allocation

- Upgrading and expanding resources at the 100% owned Thackaringa Cobalt Project;
- Undertaking metallurgical test programs on the Thackaringa Cobalt Project;
- Supporting marketing studies on cobalt and sulphuric acid production; and
- Providing working capital.

Trangie Johnston, CEO, recently commented: "With growing world demand for Li-batteries, our Thackaringa cobalt project has gained increased international and domestic interest.

"The Copi North Heavy Mineral Sands Project is also accelerating after a recent resource upgrade.”


Cobalt opportunity

The Thackaringa cobalt project near Broken Hill has been drawing attention given the growing importance of cobalt in new energy storage technologies and supply and demand issues for the metal.

An updated scoping study at Thackaringa will assist BPL find suitable partners to help further advance the project.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Fri, 24 Jun 2016 16:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151056/broken-hill-prospecting-ltd-to-lift-cash-position--69430.html
<![CDATA[News - Broken Hill Prospecting Ltd bags funds for minerals sands and cobalt ]]> https://www.proactiveinvestors.com.au/companies/news/151055/broken-hill-prospecting-ltd-bags-funds-for-minerals-sands-and-cobalt-68998.html Broken Hill Prospecting Ltd (ASX:BPL) has raised circa $1 million through the placement of shares at $0.08 to sophisticated and professional investors.

Placement shares will come with one free attaching listed option for every two shares issued with an exercise price of $0.08.

Funds will be used to update the scoping study on the strategic Thackaringa cobalt project near Broken Hill, which has been receiving increased domestic and international interest.

Funds will also be used to advance the Copi Heavy Mineral Sands Project near Broken Hill to a pre-feasibility study.

Trangie Johnston, CEO, commented: "With growing world demand for Li-batteries, our Thackaringa cobalt project has gained increased international and domestic interest.

"The Copi North Heavy Mineral Sands Project is also accelerating after a recent resource upgrade.”


Cobalt opportunity

The Thackaringa cobalt project near Broken Hill has been drawing attention given the growing importance of cobalt in new energy storage technologies and supply and demand issues for the metal.

An updated scoping study at Thackaringa will assist BPL find suitable partners to help further advance the project.


Advanced mineral sands projects

BPL has been progressing two of their five high grade titanium-zirconium deposits being the Copi North and Magic Heavy Mineral Sands deposits with their partners Relentless Resources.

These deposits are located south of Broken Hill in western NSW have been extensively explored and drill tested by other parties in the past.

A scoping study was completed in mid February, 2016 for mine development of the Copi North.

Recent extensional drilling saw tonnages increase to 14.2 million tonnes at 6.6% HM and the Indicated category rise from hosting 60% to 77% of the Mineral Resource.

The Copi North HMS deposit remains open to the northwest and an exploration target has been defined for 2 kilometres along strike from the new resource estimate.

The exploration target stands at 0.5 to 1.0 million tonnes grading 2-5% total heavy minerals.

The resource extension is significantly closer to surface than the main Copi North deposit.


Analysis

This capital will provide BPL with the resources to continue developing its high grade mineral sands and strategic cobalt projects.

The Thackaringa cobalt project is growing in relevance due to cobalt's use in new energy storage technologies.

With foreseeable supply and demand issues for cobalt, the Thackaringa project has the potential to play an important role in global supply.

The recent mineral sands resource upgrade provided BPL with a key opportunity to extend the potential mine life at Copi North which would increase project economics further.

This funding will support further exploration at the project, which in turn can increase resources and project economics.

Project economics for the development of Copi North are already compelling considering the resource is shallow and nearly twice the head grade of operating nearby mines.

The BPL share price is up 200% year to date currently trading at $0.091 per share.

BPL is expecting assay results from sampling in the exploration target area at Copi North during this month.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 02 Jun 2016 12:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151055/broken-hill-prospecting-ltd-bags-funds-for-minerals-sands-and-cobalt-68998.html
<![CDATA[News - Broken Hill Prospecting Ltd in fund raiser for heavy mineral sands, cobalt ]]> https://www.proactiveinvestors.com.au/companies/news/151054/broken-hill-prospecting-ltd-in-fund-raiser-for-heavy-mineral-sands-cobalt-68938.html Broken Hill Prospecting Ltd (ASX:BPL) is preparing to outline details of a share placement, with the ASX granting a trading halt to finalise.

The halt will remain in place until the opening of trade on Thursday 2nd June 2016, or earlier if an announcement is made to the market.

Earlier in the month the company increased its Copi North heavy mineral sands (HMS) project by 22% while maintaining its 6.6% heavy minerals (HM) high grade.

The project, which is nearly twice the reported head grade of nearby operating mines, is located south of Broken Hill in western New South Wales.

BPL also owns the Thackaringa cobalt project and is in discussions with a number of parties with regard to its future development as a strategic globally significant source of cobalt.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Tue, 31 May 2016 13:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151054/broken-hill-prospecting-ltd-in-fund-raiser-for-heavy-mineral-sands-cobalt-68938.html
<![CDATA[News - Broken Hill Prospecting Ltd increases heavy mineral sand deposit ]]> https://www.proactiveinvestors.com.au/companies/news/151053/broken-hill-prospecting-ltd-increases-heavy-mineral-sand-deposit-68884.html Broken Hill Prospecting Ltd (ASX:BPL) has increased its Copi North heavy mineral sands (HMS) project by 22% while maintaining its 6.6% heavy minerals (HM) high grade.

The project, which is nearly twice the reported head grade of nearby operating mines, is located south of Broken Hill in western New South Wales.

Extensional drilling saw tonnages increase to 14.2 million tonnes at 6.6% HM and the Indicated category rise from hosting 60% to 77% of the Mineral Resource.

Trangie Johnston, CEO, commented: "The Copi North deposit is geographically well located with excellent grade continuity close to surface. 

"These characteristics should support a cost effective, low capex mobile mining operation returning value for our shareholders.”


Background

BPL has been progressing two of their five high grade titanium-zirconium deposits being the Copi North and Magic Heavy Mineral Sands deposits with their partners Relentless Resources.

These deposits are located south of Broken Hill in western NSW have been extensively explored and drill tested by other parties in the past.

A scoping study was completed in mid February, 2016 for mine development of the Copi North.

The study demonstrated that a low capital cost, modest size mining operation could potentially yield $45.2 million in net operating cash flow after costs over five years.

In addition, there is likelihood that production could extend for an 8-10 year period when the nearby Magic HMS Deposit is progressed (Inferred Resource of 15 million tonnes of 3.7% HM) and other new resources are defined.

This resource upgrade is a good example of how BPL can potentially extend the mine life at Copi North.

Capital to develop the operation has been estimated between $21-26 million.


Future plans

The Copi North HMS deposit remains open to the northwest and an exploration target has been defined for 2 kilometres along strike from the new resource estimate.

The exploration target stands at 0.5 to 1.0 million tonnes grading 2-5% total heavy minerals.

The resource extension is significantly closer to surface than the main Copi North deposit.

BPL is expecting assay results from sampling in the exploration target area in June, 2016.


Analysis

This resource upgrade provides BPL with a key opportunity to extend the mine life at Copi North which would increase project economics further.

The scoping study completed in mid February, 2016 estimated an increase of $12 million in annual cash flow per year of additional mine life.

The BPL share price is up over 200% year to date currently trading at $0.095 per share.

Project economics for the development of Copi North are compelling considering the resource is shallow and nearly twice the head grade of operating nearby mines.

BPL also owns the Thackaringa cobalt project and is in discussions with a number of parties with regard to its future development as a strategic globally significant source of cobalt.

Cobalt is used in new energy storage technologies and with supply and demand issues for the metal, the Thackaringa project has significance as an alternative source of supply to the DRC.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 27 May 2016 13:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151053/broken-hill-prospecting-ltd-increases-heavy-mineral-sand-deposit-68884.html
<![CDATA[News - Broken Hill Prospecting Ltd to reveal mineral resource update ]]> https://www.proactiveinvestors.com.au/companies/news/151052/broken-hill-prospecting-ltd-to-reveal-mineral-resource-update-68827.html Broken Hill Prospecting Ltd (ASX:BPL) has been granted a trading halt by the ASX, pending details on a mineral resource update.

The halt will remain in place until the opening of trade on Friday 27th May 2016, or earlier if an announcement is made to the market.

The company recently appointed Anthony ‘Trangie’ Johnston as its chief executive officer, a geologist with 20 years’ experience in exploration, project development and mining activities.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 26 May 2016 07:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151052/broken-hill-prospecting-ltd-to-reveal-mineral-resource-update-68827.html
<![CDATA[News - Broken Hill Prospecting Ltd appoints Anthony Johnston as CEO ]]> https://www.proactiveinvestors.com.au/companies/news/151051/broken-hill-prospecting-ltd-appoints-anthony-johnston-as-ceo-68727.html Broken Hill Prospecting Ltd (ASX:BPL) has appointed Anthony ‘Trangie’ Johnston as its chief executive officer, a
geologist with 20 years’ experience in exploration, project development and mining activities.

He was most recently the CEO of KBL Mining (ASX:KBL), a precious metal producer and development company.  Johnston oversaw the restructure of the company to achieve operational profitability.

This included major resource/reserve upgrades and maiden deposit discoveries for the Mineral Hill Mine and Sorby Hills project, which underpinned the raising of more than $35 million through equity, debt, project financing, key investors and partnerships.

Creagh O’Connor, chairman, commented:

“Now that we are transitioning from exploration into the development of our mineral assets, the board sought a CEO with the skills to drive the company to the next stage.

"Trangie brings the skills necessary to oversee the implementation of both the Heavy Mineral Sands project and the further development of the company’s Thackaringa cobalt project.”

While the high-grade Copi North and Magic minerals sand deposits have garnered major focus it is the cobalt-pyrite project, Thackaringa that is attracting global investor's attention and also renewed interest in development by BPL.

Thackaringa has been advanced to a resource status and interest has been received from Australian and offshore groups in discussions regarding roads to its future development as a strategic globally significant source of cobalt.

Lithium-ion batteries, the main components of vehicle motors and many rechargeable batteries, contain as much as 60% cobalt.

Fittingly, the company's share price has soared 300% in recent months.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

 

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Fri, 20 May 2016 14:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151051/broken-hill-prospecting-ltd-appoints-anthony-johnston-as-ceo-68727.html
<![CDATA[News - Broken Hill Prospecting Ltd's Dr Ian Pringle retires ]]> https://www.proactiveinvestors.com.au/companies/news/151050/broken-hill-prospecting-ltds-dr-ian-pringle-retires-68373.html Broken Hill Prospecting Ltd's (ASX:BPL) managing director Dr Ian Pringle retired from all executive positions effective 30 April 2016.

Dr Pringle will act in a consultancy role to the company from 1 May 2016 to at least 31 October 2016.

Creagh O’Connor, chairman, said: "I thank Dr Pringle for his commitment and dedication and wish him the very best in his future endeavours."

The company is focused on the Copi North heavy mineral sands located south of Broken Hill in western New South Wales.

A new JORC resource estimate is pending.

BPL also has the Thackaringa cobalt deposit located beside railway and highway 25 kilometres south-west of Broken Hill.

Thackaringa has been advanced to a resource status and interest has been received from Australian and offshore groups in discussions with a number of parties with regard to its future development as a strategic globally significant source of cobalt.

Lithium-ion batteries, the main components of vehicle motors and many rechargeable batteries, contain as much as 60% cobalt.



Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 02 May 2016 09:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151050/broken-hill-prospecting-ltds-dr-ian-pringle-retires-68373.html
<![CDATA[News - Broken Hill Prospecting Ltd extends minerals sands resource by 4kms ]]> https://www.proactiveinvestors.com.au/companies/news/151049/broken-hill-prospecting-ltd-extends-minerals-sands-resource-by-4kms-68284.html Broken Hill Prospecting Ltd's (ASX:BPL) latest drill results from the Copi North heavy mineral sands (HMS) deposit has extended shallow titanium and zirconium mineralisation further west and outside of the current resource by four kilometres.

The project is located south of Broken Hill in western New South Wales and it has recently completed a 78 drill hole extensional air core drilling program.

The four kilometre extension increases the mineralisation length at Copi North by 30% to 16 kilometres.

The results confirm a substantial increase in the size of Copi North, and will form the basis of a new JORC resource estimate expected to be announced in May 2016.

The company's chairman, Creagh O’Connor commented:

“These results are very exciting because they have added another 4 kilometres onto the 12 kilometre trending Copi North deposit which was defined by drilling in 2015.”

“By increasing the size of Copi North, the Joint Venture has added considerable upside to the already positive economics defined in the recently completed scoping studies.”


Drill results

While 78 of the drill holes were extensional drilling the total program consisted of 91 air core drill holes.

Eight drill traverses (78 vertical air core drill holes) were completed in the Sunshine exploration lease, which neighbours the Copi lease.

Individual mineralised drilled intervals range up to 21.86% heavy minerals.

The mineralisation occurs at shallow depths, ranging 1-22 metres beneath unconsolidated ancient beach sand cover.

The mineralisation remains open to the northwest where there is a trend of decreasing heavy mineral grades.

Additional drilling of 12 holes in the Copi lease, confirmed continuity of previously drilled portions near the western end of the Copi North deposit. This included individual one-metre drill intersections ranging up to 25.18% heavy minerals.


Copi North scoping study

This new data will add to the Copi North which has a current JORC resource estimate of 11.6 million tonnes of 6.9% heavy minerals and which was the subject of a positive Scoping Study in February, 2016.

The study demonstrated that a low capital cost, modest size mining operation could potentially yield $45.2 million in net operating cash flow after costs over five years.

In addition, there is likelihood that production could extend for an 8-10 year period when the nearby Magic HMS Deposit is progressed (Inferred Resource of 15 million tonnes of 3.7% HM) and other new resources are defined.

The study showed that for every additional year of production, the operation could add around $12 million to the project’s undiscounted cash flow.

Capital to develop the operation has been estimated between $21-26 million.


Analysis

Since the release of the scoping study; an objective has been to extend mine life at Copi North which would translate into further upside for the project economics, with $12 million in added annual cash flow per year of additional mine life.

A new JORC resource estimate, which is expected to be announced in May 2016 will secure an important milestone for BPL in extending this project's mine life.

The BPL share price has continued its recent run closing at $0.079, up approximately 150% over the past 6 months.

The company's HMS project features grades (6.9%) that are in excess of nearby mines and the scoping study has shown mine development will act as a low capital cost route to securing medium term cash flow.


Thackaringa cobalt project

BPL also has the Thackaringa cobalt deposit located beside railway and highway 25 kilometres south-west of Broken Hill.

Thackaringa has been advanced to a resource status and interest has been received from Australian and offshore groups in discussions with a number of parties with regard to its future development as a strategic globally significant source of cobalt.

Lithium-ion batteries, the main components of vehicle motors and many rechargeable batteries, contain as much as 60% cobalt.

The focus is on assessing these for large, open cut mining to be treated by a sulphide roasting process, which in turn will produce sulphuric acid.

Since listing on the ASX in February 2011 estimates of the project’s resources have more than doubled to 35.7 million tonnes of 1.85 pounds per tonne cobalt (0.084%).

Potential exists for an additional 37-59 million tonnes of between 0.0775-0.084% cobalt.

The deposits are open at depth and along trend.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 27 Apr 2016 10:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151049/broken-hill-prospecting-ltd-extends-minerals-sands-resource-by-4kms-68284.html
<![CDATA[News - Broken Hill Prospecting Ltd rides new technology metals boom ]]> https://www.proactiveinvestors.com.au/companies/news/151048/broken-hill-prospecting-ltd-rides-new-technology-metals-boom-68221.html Broken Hill Prospecting Ltd (ASX:BPL) is an Australian resources company with a portfolio of heavy mineral sands (HMS) and cobalt deposits in the renowned Broken Hill district of New South Wales.

While the high-grade Copi North and Magic Deposits are the focus for the company, its cobalt-pyrite project, Thackaringa is attracting global investor's attention.

Thackaringa has been advanced to a resource status and interest has been received from Australian and offshore groups in discussions with a number of parties with regard to its future development as a strategic globally significant source of cobalt.

Lithium-ion batteries, the main components of vehicle motors and many rechargeable batteries, contain as much as 60% cobalt.


Thackaringa

BPL’s cobalt deposits are located beside railway and highway 25 kilometres south-west of Broken Hill.

The focus is on assessing these for large, open cut mining to be treated by a sulphide roasting process, which in turn will produce sulphuric acid.

Since listing on the ASX in February 2011 estimates of the project’s resources have more than doubled to 35.7 million tonnes of 1.85 pounds per tonne cobalt (0.084%).

Potential exists for an additional 37-59 million tonnes of between 0.0775-0.084% cobalt.

The deposits are open at depth and along trend.

BPL has completed scoping studies for the co-production of sulphuric acid and cobalt and these have highlighted significant potential for a long-term project with low capital start-up and staged development.


Cobalt

Cobalt is a metal of the future with growing demand in technology, health and energy industries of the modern world with growth forecast to be circa 9% over the 2014-2019 period.

Commentary is growing that 2016 may bring the market tightness expected last year, and along with it, a higher cobalt price.

Supply is set to shrink as copper and nickel production comes offline where cobalt is a by-product.

Expectations are growing that supply will move into deficit in 2016 largely due to demand from the battery sector which will drive a rebound in prices.

Large scale battery factories being built by companies such as Tesla and Panasonic are set to drive demand.


HMS

The company has been progressing two of their five high grade titanium-zirconium deposits being the Copi North and Magic Heavy Mineral Sands deposits with their partners Relentless Resources.

These deposits are located south of Broken Hill in western NSW have been extensively explored and drill tested by other parties in the past.

A scoping study was completed in mid February, 2016 for mine development of the Copi North.

The study revealed that a mine could potentially yield $45.2 million in net operating cash flow after costs from total revenues of $163.6 million from the sale of ilmenite, rutile, zircon, leucoxene and ilmenite concentrates over five years with the ability to extend that to eight to ten years.

Opportunities to extend the mine life exist through the nearby Magic Heavy Mineral Sands deposit, extensions to the Copi North deposit and other new resources in the area being defined.

Capital to develop the operation has been estimated between $21-26 million.


Analysis

Growing interest in BPL's cobalt deposit is now complementing the company's successful HMS projects.

Due to the growing importance of cobalt in new energy storage technologies and supply and demand issues for the metal, the Thackaringa project has global strategic significance as an alternative source of production to Africa.

The Democratic Republic of Congo has more than 50% of the world’s cobalt resources and in 2013 produced over 60% of the world’s cobalt. BPL is well placed to become one of the world’s largest cobalt producers and provide an alternative and secure source for future world’s cobalt supply.

The company's share price is up circa 200% over the past 3 months as the company's shares have been re-rated as the market tweaks to its new technology metals assemblage.

The company's HMS project features grades (6.9%) are in excess of nearby mines and the scoping study has shown mine development will act as a low capital cost route to securing medium term cash flow.

BPL has a pipeline of news flow with drilling continuing at the HMS projects and assays currently imminent.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 26 Apr 2016 09:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151048/broken-hill-prospecting-ltd-rides-new-technology-metals-boom-68221.html
<![CDATA[News - Broken Hill Prospecting Ltd shares re-rated on mineral sands and cobalt ]]> https://www.proactiveinvestors.com.au/companies/news/151047/broken-hill-prospecting-ltd-shares-re-rated-on-mineral-sands-and-cobalt-68010.html Broken Hill Prospecting Ltd (ASX:BPL) continues to advance its western New South Wales located titanium-zirconium deposits in a bid to become Australia's next heavy mineral sands producer.

Its cobalt project near Broken Hill is also drawing attention given the growing importance of cobalt in new energy storage technologies and supply and demand issues for the metal.

Development plans of the heavy mineral sands assets are now being fast tracked.

Drill sample results will be available in several weeks from the Sunshine Heavy Minerals project which is an extension of the Copi North deposit.

Magnetic surveys are scheduled on three wholly owned Heavy Minerals Sands licences in NSW’s Murray Basin for which a joint venture partner is currently being sought.

Furthermore, the Thackaringa Cobalt-Pyrite Project near Broken Hill has received considerable attention from Australian and offshore groups.


Background

The company has been steadily progressing assessment of two of their five high grade titanium-zirconium deposits.

These include the Copi North and Magic Heavy Mineral Sands deposits with their partners Relentless Resources as well as progressing their long-held 100% owned Thackaringa Cobalt-Pyrite Project.

These deposits are located south of Broken Hill in western NSW have been extensively explored and drill tested by other parties in the past.


Scoping Study on Copi North

A scoping study was completed in mid February, 2016 for mine development of the Copi North Heavy Mineral Sands deposit.

The study revealed that a mine could potentially yield $45.2 million in net operating cash flow after costs from total revenues of $163.6 million from the sale of ilmenite, rutile, zircon, leucoxene and ilmenite concentrates over five years with the ability to extend that to eight to ten years.

Opportunities to extend the mine life exist through the nearby Magic Heavy Mineral Sands deposit, extensions to the Copi North deposit and other new resources in the area being defined.

Capital to develop the operation has been estimated between $21-26 million.



Momentum building

The company is currently considering plans to progress feasibility and development of their developed heavy mineral sands deposits.
 
The concept of developing small to medium, high-grade heavy mineral sands deposits is relatively new in a mineral industry dominated by much larger and low-grade mines.

The concept of joint venturing and utilising modular and mobile mining equipment, which can be readily relocated to new deposits, will keep a competitive cap on both operating and capital costs.

The Thackaringa Cobalt-Pyrite Project will likely take longer and require considerable capital expenditure, which is why a suitable joint venture and off-take partners are being sought.


Analysis

The opportunity that exists to extend the current mine life in the scoping study provides significant financial upside. For each additional year of mine life established, $12 million is added to annual cash flow.

Furthermore, projected cash flow is leveraged to heavy mineral prices, a relatively small 10% increase in prices would add $15.7 million extra to project cash flow.

The use of a modular processing plant to move between any high-grade HMS deposits like Magic and Copi South provides the company with options for building a economically feasible mine plan.

The renewed interest from local and offshore groups in BPL's Thackaringa Cobalt-Pyrite Project near Broken Hill is partly due to the growing importance of cobalt in new energy storage technologies and supply and demand issues for the metal.  The project could also produce sulphuric acid and cobalt, the former is imported into Australia at present.

BPL's share price has been on a run recently closing at $0.054, (after trading at $0.058) more than double where it was trading a month ago.

Proactive said in November 2015: "...there is plenty to like about BPL at its market cap of $3.8M. The market is under-valuing BPL's minerals sand assets as it is conceivably the next heavy minerals sands cab-off-the-rank. BPL will likely seek to JV and develop a chemical business based on processing cobalt-pyrite concentrates."

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 12 Apr 2016 09:45:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151047/broken-hill-prospecting-ltd-shares-re-rated-on-mineral-sands-and-cobalt-68010.html
<![CDATA[News - Broken Hill Prospecting Ltd's shares spike ]]> https://www.proactiveinvestors.com.au/companies/news/151046/broken-hill-prospecting-ltds-shares-spike-67884.html Broken Hill Prospecting Ltd (ASX:BPL) has this afternoon responded to an ASX Price Query, after shares in the company jumped 44% to $0.039 intra-day, compared to yesterday's closing price.

The company said that it was not aware of any information not announced which could explain the trading.

BPL said that it can only assume that the explanation for the recent increase in price and volume in its securities is due to recent public awareness for the growing requirement for new cobalt sources to supply developing technologies such as lithium ion-cobalt batteries which are used to power many new models of electric vehicles.

BPL owns a large, undeveloped cobalt deposit (Thackaringa Cobalt-Pyrite Project) near Broken Hill in western New South Wales.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 05 Apr 2016 16:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151046/broken-hill-prospecting-ltds-shares-spike-67884.html
<![CDATA[News - Broken Hill Prospecting eyes longer heavy mineral sands mine life ]]> https://www.proactiveinvestors.com.au/companies/news/151045/broken-hill-prospecting-eyes-longer-heavy-mineral-sands-mine-life-67194.html Broken Hill Prospecting (ASX:BPL) will look to extend the mine life at its Heavy Mineral Sands projects located in western New South Wales, with a round of aircore drilling.

Drilling will target north western extensions to expand the current high grade Copi North HMS resource estimate where known extensions of the deposit occur.

This in turn, should provide for an extended mine life beyond the current five years used in the recent Scoping Study.

The independent Scoping Study looked into the production of HMS concentrates, zirconium and titanium, and demonstrated the project would be profitable - even at current metal prices. 

The drill program is fully funded by private mining investment group Relentless Resources which is providing $2 million of funding through a Joint Venture to earn a 50% interest.

The Copi North HMS project is located in the Murray Basin, home to one of the world’s major sources of heavy mineral minerals with a number of producing HMS mines.


Exploration heating up

BPL will complete 56 shallow exploration aircore drill holes exploring at Sunshine for HMS. Air-core drilling allows low cost, rapid drilling which provides good quality sample recovery and suits HMS exploration and resource development work.

The work has been designed to follow up and test historical drilling undertaken by other companies in the 1990’s and early 2000’s as well as explore along strike continuity of newly defined mineralisation. Targeting of shallow, high-grade zones has been given highest priority in addition to in-fill drilling “gaps” in the previous drill coverage.

Drill results from the Copi North HMS deposit are considered to contain exceptional HMS grades. The data include numerous drilled intervals between 1-4 metres thick which grade >20% HM and many intervals with more than 10% HM content.

The majority of the previous exploration work was undertaken by Iluka Resources in the 1990’s and early 2000’s.


Updated HMS resource

The current defined portion of the Copi North strandline deposit extends for 12 kilometres and has a resource totalling 11.6 million tonnes grading 6.9% THM.

Significantly, a new resource estimate for the Sunshine-Copi North HMS deposit is expected to be completed April 2016 following the drilling.


Scoping Study for Copi North

Operating costs for the project were forecast to be low due to a low strip ratio and the use of innovative mining techniques to reduce costs.

The CAPEX estimate of $22 million is in line with expectations with a short payback period of 30 months based on producing 1.4 million tonnes per annum throughput with an initial 5 year mine life to generate operating cash $45.2 million on $163.6 million of revenue.

Mining an average grade of 9% HMS, innovative mining methods and use of a small mobile plant holds the key to the robust project economics for Copi North. 


Analysis

A new resource estimate for the Sunshine-Copi North HMS deposit is expected to be completed April 2016.

Additions to the current mine life in the scoping study provide a significant prize. For each additional year of mine life established, $12 million is added to annual cash flow.

Drilling is expected to be completed by mid-March 2016.

In addition, a relatively small 10% increase in HM prices would add a tidy $15.7 million extra to project cash flow.

Commencement of a Pre-Feasibility Study is likely to follow completion of the drilling and take just 12 weeks to complete.

Conceptually, after mining of Copi North resources, BPH could relocate the modular processing plant to any one of a number of high-grade HMS deposits like Magic and Copi South providing a pathway to fund development of successive projects.

Our contention is that Broken Hill Prospecting, with as many as 20 similar projects to Copi North on its tenement holdings, is likely to become a significant, profitable HMS producer.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 25 Feb 2016 09:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/151045/broken-hill-prospecting-eyes-longer-heavy-mineral-sands-mine-life-67194.html
<![CDATA[News - Broken Hill Prospecting's Copi North heavy mineral sands proves worth ]]> https://www.proactiveinvestors.com.au/companies/news/151044/broken-hill-prospectings-copi-north-heavy-mineral-sands-proves-worth-66980.html Broken Hill Prospecting (ASX:BPL) has delivered a bullish scoping study for its Copi North HMS deposit in western New South Wales that would be profitable even at current low metal prices from production of Heavy Mineral Sand concentrates.

The study undertaken by Mineral Technologies Downer, evaluated the economics of mining, processing and sales of ilmenite, rutile, zircon, leucoxene and ilmenite concentrates.

The Copi North HMS project is located in the Murray Basin, home to one of the world’s major sources of heavy mineral minerals.

The current defined portion of the Copi North strandline deposit extends for 12 kilometres and has a resource totalling 11.6 million tonnes grading 6.9% THM.

Operating costs would be low due to a low strip ratio and the use of innovative mining techniques to reduce costs.

The CAPEX estimate of $22 million is in line with expectations with a short payback period of 30 months based on producing 1.4 million tonnes per annum throughput with an initial 5 year mine life to generate operating cash $45.2 million on $163.6 million of revenue.

Mining an average grade of 9% HMS, innovative mining methods and use of a small mobile plant holds the key to the robust project economics for Copi North. 

Mine life is likely to expand perhaps to 8-10 years as drilling will re-commence at Copi North next month aimed at expanding the resource base and extend mine life.

The quest to expand mine life is significant as each year of additional potential production adds approximately $12 million to the undiscounted net cash flow.

JV partner Relentless Resources Limited is funding Scoping and Feasibility studies and can earn up to 50%.


Modular, transportable plant

The small, moveable nature of the processing plant is also likely to be used not only on the shallow and high-grade Copi North mineralisation but could also be relocated to process additional resources extending from Copi North (Sunrise) or from other HMS deposits such as Magic, Copi South, or at any of the other HMS deposits which occur within the Broken Hill Prospecting tenements.


Analysis

BPH's vision was always to capitalise on shallow high-grade HMS deposits which have historically been regarded as too small for traditional stand-alone development.

This study confirms our belief of the standalone attractiveness of Copi North and its commercialisation potential.

This has now been proven with strong project economics. That it would be profitable at current metal prices highlights the resource quality and the innovative approach to mining and processing to reduce OPEX and CAPEX costs.

Based on this, the probability the project will get developed is higher, even at current metal prices.

Step-out shallow air-core drilling preparation is underway to explore the western extension to the Copi North deposit.

The deposit is not fully explored with resource remaining open to the SE and NW. It may extend beyond the portion which has been drill tested.

With $12 million added to annual cash flow for each additional year of mine life, the drilling results will be keenly observed.

Drilling will commence in a few days and is expected to be completed by mid-March 2016.

In addition, a relatively small 10% increase in HM prices would add a tidy $15.7 million extra to project cash flow.

Commencement of a Pre-Feasibility Study is likely to follow completion of the drilling and take just 12 weeks to complete. However, Copi North is just the first cab off the rank.

Conceptually, after mining of Copi North resources, BPH could relocate the processing plant to any one of a number of high-grade HMS deposits like Magic and Copi South providing a segue to sequential cash flow generation. Significantly, BPH believes there could be as many as 20 similar projects to Copi North on its ground.

With JV partner RRL funding feasibility studies, releases BPH cash to continue to prove up additional resources.

BPH is very firmly on the road to become a heavy minerals developer despite challenging commodity prices.



Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 11 Feb 2016 14:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/151044/broken-hill-prospectings-copi-north-heavy-mineral-sands-proves-worth-66980.html
<![CDATA[News - Broken Hill Prospecting to reveal all on mineral sands study ]]> https://www.proactiveinvestors.com.au/companies/news/151043/broken-hill-prospecting-to-reveal-all-on-mineral-sands-study-66807.html Broken Hill Prospecting (ASX:BPL) could announce the results of a highly anticipated Scoping Study for the Copi North heavy mineral sands project in New South Wales within days.

Specialist mineral sands engineers, Mineral Technologies (Downer), notified that the study has been completed into the potential mining and production of zirconium and titanium rich mineral sands at Copi.

Broken Hill is in possession of a draft report, which the company, its consultants and joint venture partner, Relentless Resources, are currently reviewing prior to sign-off.

Regional infrastructure and mine support services, which have developed over more than 120 years of mining in the Broken Hill district, would assist to progress a cost effective mine development.

BPL announced a mineral resource in mid 2015 of 11.6 million tonnes at 6.9% Heavy Minerals at its Copi North Deposit.

The high average grade of the deposit is about twice the head-grade of nearby operating mines.

BPL has built a valuable assemblage of mineral sands following a maiden resource of 15 million tonnes at 3.7% heavy minerals defined for its Magic Heavy Mineral Sands Deposit in New South Wales.

Both projects are located close to existing infrastructure and Cristal Mining’s Ginkgo and Snapper operating mines.

A positive scoping study could see mining of small tonnage mines with low capital and operating costs, ideal for the current climate and a minimal environmental footprint.

Project mine life could be increased by relocating mobile plant and equipment to Magic or other deposits after any future mining is completed at Copi North.

The evaluation is fully financed by the private mining investment group Relentless Resources Limited which is providing $2 million of funding through a Joint Venture to earn a 50% interest in the two tenements.

Promisingly, the size, shallow depth and high grades of the Copi North mineralisation as well as nearby deposits (e.g. Magic, Copi South) could be mined sequentially or in parallel.


Analysis

Drill results from the Copi North HM deposit are considered to contain very high grade heavy mineral assemblages. The data includes numerous drilled intervals between 1-4 metres thick which grade >20% HM and many intervals with more than 10% HM content.

Both the Copi North and Magic deposits are at advanced exploration status and have been the subject of significant past exploration activities.

A positive scoping study could entail lower tonnage throughput which would assist to minimise costs through advantages of small and modular mobile mining equipment and plant.

Pre-feasibility studies could then flow thereafter including preliminary environmental and commercial studies which could be completed in 2016.




Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 01 Feb 2016 17:09:00 +1100 https://www.proactiveinvestors.com.au/companies/news/151043/broken-hill-prospecting-to-reveal-all-on-mineral-sands-study-66807.html
<![CDATA[News - Broken Hill Prospecting hot on heels as next heavy minerals sands producer ]]> https://www.proactiveinvestors.com.au/companies/news/151041/broken-hill-prospecting-hot-on-heels-as-next-heavy-minerals-sands-producer-65666.html Broken Hill Prospecting (ASX:BPL) could be producing heavy mineral sands in 2016/17 if a scoping study comes up trumps from high-grade deposits in New South Wales using modular mobile mining plants.

To date the portents are good as BPL has built a valuable assemblage of mineral sands following a maiden Resource of 15 million tonnes at 3.7% heavy minerals defined for its Magic Heavy Mineral Sands Deposit in New South Wales.

This follows the July 2015 mineral resource of 11.6 million tonnes at 6.9% Heavy Minerals defined at its Copi North Deposit about 50 kilometres to the south.

Notably, the high average grade of the deposit is about twice the head-grade of nearby operating mines while mineralogy includes a relatively high proportion of the valuable zircon (11.3%) and rutile (10.8%).

In fact, BPL is the state’s top explorer for titanium and zirconium in the Murray Basin, a world-class heavy mineral sands province.

Both projects are located close to existing infrastructure and Cristal Mining’s Ginkgo and Snapper operating mines.

As a guide to the growing value of BPH's projects in the region, Cristal Mining is ranked in the top 10 of global mineral sands-producing companies.

The zirconium and titanium deposits existed within areas that had been prospected by mineral sand miners over several decades.


Scoping study

A Scoping Study is underway on the Copi North HMS deposit which is expected to be finalised late this calendar year as is an environmental survey. Hot on their heels will be a Pre-Feasibility study in mid-2016.

Development and operating costs are likely to be conducive for mining given coarse nature of the mineral-bearing sands, their high grades and the relatively shallow depth of the mineralisation.

This would see mining of small tonnage mines with low capital and operating costs and minimal environmental footprint. Project mine life could be increased by relocating mobile plant and equipment to Magic or other deposits after any future mining is completed at Copi North.

Regional infrastructure and mine support services, which have developed over more than 120 years of mining in the Broken Hill district, will assist to progress cost effective mine development.

A likely development scenario could see BPL mining at a rate of 1.4 million tonnes per annum and production of about 100,000 tonnes per annum of heavy mineral sands.

The projects are projects are fully financed by the private mining investment group Relentless Resources to earn a 50% interest in EL8311 (Magic) and EL8312 (Copi) as well as the Sunshine ELA.

Further drill testing is also planned to seek a western extension to the high-grade Copi North strand (the Sunshine Project) and to test the nearby Copi South HMS deposit.


Analysis

Newest Australian mineral sands producer in 2015, MZI (ASX:MZI) has been a strong sharemarket performer in 2015 providing incentive for BPL to fast track development of Copi North as it moves through a scoping study and environmental survey stages.

Based on MZI's market cap. of circa $40M, there is plenty to like about BPL at its market cap of $3.8M. Excluding cash of $1.5M and the market is under-valuing BPL's minerals sand assets as it is conceivably the next heavy minerals sands cab-off-the-rank. 

Certainly, a production scenario of 1.4mtpa and production of about 100,000tpa of heavy mineral sands would generate significant operating income for BPL given relative project CAPEX and OPEX advantages.

Tellingly, BPL has just beefed up its Board, adding a 20 year experienced heavy mineral sands industry veteran in Denis Geldard. 

Adding to the intrinsic value inherent not priced in by the market, BPL also has the Thackaringa cobalt-pyrite project near Broken Hill, one of the largest undeveloped cobalt projects globally.

This could produce 5,000tpa cobalt & 1-2Mtpa sulphuric acid in a longer term development given high capital cost.

This has drawn interest from parties for off take for cobalt or sulphuric acid. That deposit benefits from the lack of other metals such as copper or nickel.

As foreshadowed, BPL will likely seek to JV and develop a chemical business based on processing cobalt-pyrite concentrates.

However, it is BPL's heavy minerals sands projects in the mining friendly Broken Hills district that will ramp up in excitement and activity.

The stock is tightly held but the flip side is that BPL is leveraged to news flow.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 19 Nov 2015 08:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/151041/broken-hill-prospecting-hot-on-heels-as-next-heavy-minerals-sands-producer-65666.html
<![CDATA[News - Broken Hill keeps the faith in cobalt markets ]]> https://www.proactiveinvestors.com.au/companies/news/151040/broken-hill-keeps-the-faith-in-cobalt-markets-65389.html Broken Hill Prospecting (ASX:BPL) has committed confidently in growing environmental, battery and superalloy markets by renewing its exploration rights at the Thackaringa cobalt-pyrite project in New South Wales.

The company confirmed today that it was extending its rights at two exploration licences at the project for another two years as deposit evaluations progress.

The move is considered a vote of confidence in Broken Hill Prospecting’s excellent position to take advantage of increasing demand for cobalt to meet growth in environmental and industrial uses including rechargeable batteries in automobiles and superalloys.

Since the company listed on the ASX in February 2011, estimates of Thackaringa’s resources have more than doubled to 35.7 million tonnes at 0.084% cobalt for 30,000 tonnes of contained cobalt.

The project is considered to have potential for an additional 37-59 million tonnes of resources at between 0.0775-0.084% cobalt.

Many mapped areas of cobalt-pyrite rock have yet to be drill tested.

Cobalt properties of temperature stability and corrosion/wear resistance make it useful in superalloy industries, while its presence in lithium-ion battery cathodes makes the element an important ingredient in battery market that are growing on the back of global trends in cleaner energy sources.


About Thackaringa

Thackaringa encompasses the two newly renewed exploration licences as well as two mining leases 25 kilometres southwest of south of Broken Hill.

Cobalt mineralised rock at Thackaringa can be concentrated and upgraded by simple gravity or flotation methods because the cobalt within all of the deposits is contained almost entirely within pyrite.

The mineralisation is made up almost completely by an assemblage of albite, quartz and pyrite and this allows conventional concentration methods to be applied during any future development of the resource.

After concentration, the cobalt-rich pyrite concentrate could be sent by train to a suitable location for further processing to separate the cobalt from the pyrite or this work could be undertaken at site.

There are several viable options for the processing and each would produce either sulphur or sulphuric acid during the separation process. Sulphuric acid is in demand by fertilizer producers and some metals leaching processes and could add considerably to the value to the project.


Mineral sands traction

Recent news from Broken Hill Prospecting has otherwise focused on development of its NSW mineral sands properties, including the Magic project which delivered a maiden resource in September of 15 million tonnes at 3.7% heavy minerals.

This followed a July announcement that the nearby Copi North deposit had defined 11.6 million tonnes at 6.9% heavy minerals.

Both projects are located in the company’s five tenements in the Murray Basin where previous exploration by Iluka Resources (ASX:ILU) has identified deposits of economic interest.

These are located close to existing infrastructure and Cristal Mining’s Ginkgo and Snapper operating mines. Cristal’s heavy mineral concentrates are trucked to the mineral separation plant near Broken Hill.

Copi and Magic are fully financed by private mining investment group Relentless Resources, which is providing $2 million of funding through a joint venture to earn a 50% interest in both projects as well as a related exploration licence application. 


Analysis

Broken Hill Prospecting’s move to maintain its exposure to the cobalt space may prove to be savvy as battery markets mature in the medium term.

The growth rate of resources at Thackaringa has been notable, with the project more than doubling in size since the company listed in 2011.

Thackaringa could benefit from sulphuric acid as a co-product, addressing Australian reliance on imported sulphur and providing opportunities for phosphate fertiliser and mineral processing industries.

The company’s progress in mineral sands development adds diversity to its jurisdictionally focused portfolio.

The recent resource estimate of at Magic provides a sequential development opportunity for a low-OPEX, low-CAPEX development after the company brings the equally low-cost, but higher-grade Copi North into production.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 02 Nov 2015 15:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/151040/broken-hill-keeps-the-faith-in-cobalt-markets-65389.html
<![CDATA[News - Broken Hill Prospecting inks maiden high grade minerals sands resource ]]> https://www.proactiveinvestors.com.au/companies/news/151039/broken-hill-prospecting-inks-maiden-high-grade-minerals-sands-resource-63667.html Broken Hill Prospecting (ASX:BPL) has defined an attractive maiden Mineral resource of 11.6 million tonnes at 6.9% for its Copi North Heavy Mineral Sands Deposit in the Murray Basin, New South Wales.

The Murray Basin is a globally significant Heavy Mineral Sand region with current resources valued at over US$200B.

Bullishly, today's resource estimate is nearly twice the reported head grades of nearby operating heavy mineral sands mines of between 3.5% and 4% heavy minerals.

Nearby operations include Iluka Resources’ (ASX:ILU) Douglas deposits as well as Cristal Mining’s Ginkgo and Snapper mines. These mines produced 163,479 tonnes of ilmenite and yielded sales revenues of $A310 million during 2013 providing a pathway to value accretion for Broken Hill Prospecting.

The Copi North Resource occurs at shallow depths averaging about 23 metres under friable sand, silt and clay. It includes an Indicated Resource of 7 million tonnes at 6.9%.

It has low slime content that may help maximise heavy mineral recovery while the limited groundwater could support lower capital cost, dry, open-cut mining using a small and mobile plant.

There is potential to extend deposit strike length to up to 30 kilometres from 10 kilometres, increasing resources.

Scoping and pre-feasibility studies on Copi North HMS Deposit are expected to be completed in late 2015.

The deposit could become one of the lowest cost quartile of producers on present trends.

In addition, a maiden resource estimate for the Magic HMS deposit is anticipated in August.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.   

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Mon, 27 Jul 2015 16:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151039/broken-hill-prospecting-inks-maiden-high-grade-minerals-sands-resource-63667.html
<![CDATA[News - Broken Hill Prospecting starts drilling at heavy mineral sand projects ]]> https://www.proactiveinvestors.com.au/companies/news/151038/broken-hill-prospecting-starts-drilling-at-heavy-mineral-sand-projects-61146.html
Broken Hill Prospecting (ASX:BPL) has started maiden aircore drilling at the two heavy mineral sand (HMS) projects in western  New South Wales.

Private mining investment group Relentless Resources is earning a 50% interest in the two projects by funding $2 million for the drilling.

Infill drilling to confirm historical data integrity will begin at the Copi North HMS deposit before moving to the Magic HMS deposit.

Both are advanced projects, having been extensively drilled previously by HMS industry majors.

The new data will be used to undertake new resource estimates in accordance with JORC 2012.

Drilling is expected to be completed in approximately three weeks and analytical results are expected in May.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 09 Mar 2015 16:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/151038/broken-hill-prospecting-starts-drilling-at-heavy-mineral-sand-projects-61146.html
<![CDATA[News - Broken Hill Prospecting expands into heavy mineral sands ]]> https://www.proactiveinvestors.com.au/companies/news/151037/broken-hill-prospecting-expands-into-heavy-mineral-sands-55718.html Broken Hill Prospecting (ASX:BPL) has lodged five Exploration Licence Applications to explore for heavy mineral sand deposits in the Murray Basin, south of Broken Hill, New South Wales.

BPL has identified five areas, all of which have been discovered and drill tested by other mineral explorers including Iluka Resources (ASX:ILU).

The targets are fine-grained, bulk tonnage titanium and zirconium sands over 20 prospects, several with considerable zones of HMS.

These new projects could add considerable value to BPL and provide important synergies for any future development of BPL’s cobalt-pyrite deposits and associated chemical industries based on sulphuric acid production.

BPL has reviewed historical mineral sand exploration in NSW with a view to establishing a foothold in the HMS industry where emerging technology is making significant advances in processing and recovery of titanium and zirconium minerals.

Cristal Mining currently operates two mineral sands mines in the NSW Murray Basin and a mineral separation plant at Broken Hill.

According to Cristal’s December 2013 quarter report these produced 163,479 tonnes of ilmenite and sales revenues of $309 million during 2013.

The NSW Department of Planning & Environment recently approved Cristal Mining’s application to construct and operate a new Murray Basin mining operation.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 19 Jun 2014 14:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151037/broken-hill-prospecting-expands-into-heavy-mineral-sands-55718.html
<![CDATA[News - Broken Hill Prospecting finds new sulphuric acid deposit near Broken Hill ]]> https://www.proactiveinvestors.com.au/companies/news/151036/broken-hill-prospecting-finds-new-sulphuric-acid-deposit-near-broken-hill-54347.html Broken Hill Prospecting (ASX: BPL) should trade higher after uncovering a potentially viable sulphuric acid project, near its Thackaringa cobalt-pyrite deposits near Broken Hill in New South Wales.

A two million tonne per year facility could operate for 20 years or more by roasting cobalt-pyrite at Broken Hill to produce sulphuric acid, mined from BPL’s nearby Thackaringa resource.

Sulphuric acid is in strong demand domestically by major industries including mineral processing and fertiliser production, and Australia is heavily reliant on imports for supply.

The main findings of the new study include total CAPEX of $768.5 million ; a sale price of $186/t sulphuric acid; $381.5 million revenue per year with a profit margin of 30%.

In addition to revenues from sulphuric acid, the project’s cobalt value would be considerable because of cobalt contained in the ore.

Mining and processing costs prior to cobalt recovery were included in the cost structure for sulphuric acid production.

Based on a cobalt price of US$27,450 per tonne, the model estimated that additional value of the contained cobalt could be between US$822 million to US$1.3 billion.

The analysis included capital and operating estimates for mining, concentration of the cobalt-pyrite ore, transport and roasting of concentrate to produce sulphuric acid.

The key takeaway is that sulphuric acid production using BPL’s cobalt-pyrite ore near Broken Hill can be viable, even without the input of substantial cobalt credits.

Cobalt contained in pyrite concentrate could be recovered independently from the residue following acid production and would make an important economic contribution to the project.”

BPL is well positioned to take advantage of an increasing local demand for sulphuric acid which is an essential ingredient for many mineral processing and chemical industries.

The company is capitalised at a modest $4 million.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 15 Apr 2014 13:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151036/broken-hill-prospecting-finds-new-sulphuric-acid-deposit-near-broken-hill-54347.html
<![CDATA[News - Broken Hill Prospecting reveals maiden cobalt resource at Railway deposit ]]> https://www.proactiveinvestors.com.au/companies/news/151035/broken-hill-prospecting-reveals-maiden-cobalt-resource-at-railway-deposit-31764.html Broken Hill Prospecting (ASX:BPL) has revealed a maiden resource of 14.9 milliont tonnes of 1.83 pounds per tonne (831ppm) cobalt (27 million pounds of contained cobalt metal) at its Railway Cobalt Deposit near Broken Hill.

Which is well timed given current cobalt prices of $14/lb, adds a significant increase in contained metal value for the Company.

Cobalt is fast becoming an important ‘metal of the future’ through widespread and growing use in batteries for new-generation electric and hybrid cars, computers and telephones and in hardened metal and super alloys.

The study, undertaken by H&S Consultants has increased cobalt resources by 70% and added considerable potential to BPL’s 100% owned Thackaringa Cobalt Project also near Broken Hill.

Additional potential of 23-35 millionn tonnes of similar mineralisation has been estimated for the Railway project. 

The combined Railway, Pyrite Hill, and Big Hill Inferred Mineral Resource has increased by over 70% to 35.7 milion tonnes of 1.85 pounds per tonne (841ppm) cobalt (66 million pounds of contained cobalt metal)

Potential for the combined Railway and Pyrite Hill has been upgraded to between 37-59 million tonnes of mineralisation between 600-900ppm cobalt.

 

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Fri, 27 Jul 2012 09:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151035/broken-hill-prospecting-reveals-maiden-cobalt-resource-at-railway-deposit-31764.html
<![CDATA[News - Broken Hill Prospecting finds more high grade cobalt, starts resource assessment and scoping study ]]> https://www.proactiveinvestors.com.au/companies/news/151034/broken-hill-prospecting-finds-more-high-grade-cobalt-starts-resource-assessment-and-scoping-study-30110.html Broken Hill Prospecting (ASX: BPL) has intersected more high grade cobalt mineralisation at its Railway Cobalt Prospect in New South Wales and has started a resource assessment using the new data.

Highlights from the final holes of its April-May program include:

75 metres of 2.22 pounds per tonne (lb/t) cobalt including 16 metres of 3.58lb/t cobalt
41 metres of 2.2 lb/t cobalt
27 metres of 2.23lb/t cobalt

The resource assessment of the Railway Prospect near Broken Hill is expected to be completed in late July and planning is also underway for a scoping study to investigate the potential for a 7.5 million tonne per year open cut mine.

This will be capable of producing a pyrite concentrate containing about 7000 tonnes of cobalt each year.

The study will focus on mining costs and mill to upgrading the cobaltiferous pyrite through gravity and flotation processes and to produce a pyrite concentrate with a grade of about 0.5% cobalt.

Options to process the concentrate will be reviewed to determine optimal and cost effective recovery.

Broken Hill is also planning commercial and marketing studies for cobalt concentrate, cobalt metal as well as by-products such as ceramic grade feldspar, sulphuric acid and high iron residue.

The 20 hole drilling program was designed to explore for new deposits of economic, near surface cobalt mineralisation to complement the company’s existing resources at the nearby Pyrite Hill and Big Hill Cobalt deposits.

While Central African mines account for over 65% of recorded global cobalt production in 2011, the company believes that its deposits; excellent road and rail access; and proximity to mining infrastructure at the town of Broken Hill; places in it a good position to fast track production should growing concerns over future security of cobalt supply lead to upward cobalt price fluctuations.

It also allows the company to investigate several processing options for future mine development.

 

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Thu, 14 Jun 2012 15:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151034/broken-hill-prospecting-finds-more-high-grade-cobalt-starts-resource-assessment-and-scoping-study-30110.html
<![CDATA[News - Broken Hill Prospecting identifies broad, high grade cobalt close to existing resource ]]> https://www.proactiveinvestors.com.au/companies/news/151033/broken-hill-prospecting-identifies-broad-high-grade-cobalt-close-to-existing-resource--29038.html Broken Hill Prospecting (ASX: BPL) has returned intersections of 45 metres at 3.85 pounds per tonne (lb/t) cobalt from drilling at the Railway Cobalt Prospect in New South Wales.

Wide spaced drilling has intersected near surface cobalt mineralisation, with highlights including:

- 18 metres at 5.08lb/t cobalt from 106 metres, including 11 metres at 6.7lb/t cobalt;
- 45 metres at 3.85lb/t cobalt from 27 metres, including 9 metres at 4.89lb/t cobalt; and
- 15 metres at 2.92lb/t cobalt from 144 metres.

Mineralisation has been identified over strike length of 1.5 kilometres by 300 metres width. It remains open along trend and at depth.

The drilling program was designed to explore for new deposits of economic, near surface cobalt mineralisation to complement the company’s existing resources at the nearby Pyrite Hill and Big Hill Cobalt deposits.

Pyrite Hill and Big Hill host a combined JORC Inferred Resource of 20.8 million tonnes at 1.87lb/t cobalt, with potential for an extra 14-24 million tonnes of similar grade material.

Importantly, cobalt intercepted at the Railway deposit is similar in thickness, but more than double the cobalt grade, to mineralisation at Pyrite Hill and Big Hill.

Further assays from the drilling program at Railway are pending.



Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

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Fri, 18 May 2012 13:20:00 +1000 https://www.proactiveinvestors.com.au/companies/news/151033/broken-hill-prospecting-identifies-broad-high-grade-cobalt-close-to-existing-resource--29038.html
<![CDATA[News - Broken Hill Prospecting increases contained cobalt at Pyrite Hill Deposit by 7 million pounds ]]> https://www.proactiveinvestors.com.au/companies/news/151032/broken-hill-prospecting-increases-contained-cobalt-at-pyrite-hill-deposit-by-7-million-pounds--21993.html Dual listed Broken Hill Prospecting (ASX/NZX:BPL) has upped the ante at its Pyrite Hill Cobalt Deposit with a 55% boost in Inferred Resources to 16.4 million tonnes at 1.83 pounds per tonne cobalt from a updated study.

With cobalt becoming a key metal used in batteries for new-generation electric and hybrid cars and in hardened metal and alloys, Broken Hill Prospecting could find itself a leading cobalt producer based on its progress to date at Pyrite.

The new resource work by Hellman & Schofield Pty Ltd has increased the project’s cobalt resources by 7 million pounds of contained cobalt.

A mineral resource update for the Pyrite Hill Cobalt Deposit has increased the deposit’s size from 10.6 million tonnes of 2.2 pounds per tonne of cobalt to an Inferred Resource of 16.4 million tonnes of 1.83 pounds per tonne cobalt, a 55% increase in contained cobalt.

Significantly, the study also defined additional potential for between 14 and 24 million tonnes of cobalt mineralisation of similar grade peripheral to this resource at Pyrite Hill.

Both the Pyrite Hill Inferred Resource and potential mineralisation occur from near surface to 300 metres depth
and are open at depth and along trend to the northwest of the Pyrite Hill Deposit.

Including mineralisation at the Big Hill Cobalt deposit (Inferred Resource of 4.4 million tonnes of 2.00 pounds per tonne cobalt) the combined Inferred Resources for the overall project totals 20.8 million tonnes of 1.87 pound per tonne cobalt (39 million pounds of contained cobalt metal).

Intriguingly, the mineralisation occurs close to surface and provides an strong platform for later feasibility studies for a future open cut mine capable of initial production throughput of 4-5 million tonnes per year.

Given the cobalt deposits are located in the in the Broken Hill area, there is excellent road and rail access for the deposits, future processing options could include offsite locations.  The pyrite can be readily upgraded into a pyrite concentrate and, because of the prevalent infrastructure.

CRA Exploration Pty Ltd completed a ‘resource estimate’ for the Pyrite Hill deposit (ML86) in 1981.

Broken Hill Prospecting raised $4.47 million in an initial public offering in February 2011 its shares are quoted on both the Australian and New Zealand stock exchanges.

Although under the radar, the company has acquired the cobalt deposits when cobalt prices were low, providing upside for investors.

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Mon, 14 Nov 2011 13:26:00 +1100 https://www.proactiveinvestors.com.au/companies/news/151032/broken-hill-prospecting-increases-contained-cobalt-at-pyrite-hill-deposit-by-7-million-pounds--21993.html
<![CDATA[News - Broken Hill Prospecting intersects 1m at 4,230g/t cobalt at Pyrite Hill ]]> https://www.proactiveinvestors.com.au/companies/news/151031/broken-hill-prospecting-intersects-1m-at-4230gt-cobalt-at-pyrite-hill-20990.html Broken Hill Prospecting (ASX: BPL) has significantly increased the known cobalt mineralisation through drill testing at the Pyrite Hill Cobalt Deposit, south west of Broken Hill in New South Wales.

Intersections included 108 metres at 520 grams per tonne (g/t) cobalt from 74 metres including 1 metre at 4,230g/t cobalt; 49 metres at 1,037g/t cobalt from 123 metres including 4 metres at 2,388g/t cobalt; and 79 metres at 720g/t cobalt from 150 metres including 3 metres at 2,133g/t cobalt.

The results show that thick and continuous horizons of cobalt mineralisation extend from surface outcrops of known mineralisation to 300 metres down dip, and remain open at depth.

It is anticipated that the geophysical survey will be completed in late October and it is expected to define further targets for drill testing.

New resource calculations are being undertaken to update the current Inferred Resource of 10.6 million tonnes at 2.1 pounds per tonne of cobalt.

An induced polarization geophysical survey is mapping extensions to the cobalt mineralisation outside the drill area, and is expected to locate drill targets along-trend.

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Thu, 20 Oct 2011 14:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/151031/broken-hill-prospecting-intersects-1m-at-4230gt-cobalt-at-pyrite-hill-20990.html