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Broken Hill Prospecting granted trading halt pending cobalt project PFS

Joint venture partner Cobalt Blue Holdings will this week release a PFS and maiden ore reserve.

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.