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

Published: 11:34 04 Jul 2018 AEST

cobalt sample
Potential source of high purity cobalt for the battery industry

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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