Thackaringa Cobalt Project JV Completes Stage 1 Earn-In
- The Thackaringa Cobalt Project Joint Venture (TJV) between Broken Hill Prospecting Ltd (BPL) and Cobalt Blue Holdings Ltd (COB) delivered a major resource upgrade on 19 March 2018.
- BPL have assessed the technical and financial milestones under the TJV Stage 1 and confirm COB has now earned 51% beneficial interest in the Thackaringa Project, with BPL holding the balance of 49% beneficial interest and 100% of the legal title.
- The TJV is now moving towards the completion of a Prefeasibility Study (PFS) by 30 June 2018.
Broken Hill Prospecting Limited (ASX: BPL) or the Company, advises that under the terms of the Thackaringa Joint Venture (TJV) with Cobalt Blue Holdings Ltd (COB) the requirements have now been satisfied for COB to retain 51% beneficial interest in the TJV.
Additional project milestones have still to be met by specific dates for COB to further increase its interest. BPL and COB are now moving towards completion of the Thackaringa PFS by 30 June 2018. This is the next major project milestone and, if met, will allow COB to move to 70% beneficial interest in the project.
BPL’s Managing Director,Trangie Johnston commented:
“The major resource upgrade at Thackaringa in March was a key step underpinning completion of Stage 1 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, announced by the TJV on 23 March.
BPL holds a significant direct interest in the Thackaringa project, and also 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.”
Broken Hill Prospecting Limited (BPL) is a mining and exploration company that is seeking, in joint venture with Cobalt Blue Holdings Ltd, to develop the significant Pyrite Hill, Big Hill and Railway cobalt deposits located 25 kilometres south-west of the world famous mining centre of Broken Hill in western New South Wales.
The deposits are geologically unusual because they do not occur as a bi-product with richer copper or nickel deposits, as is the case in nearly every other mine around the globe. Cobalt, therefore, would be the main focus of any mining development.
Rising demand for cobalt: BPL consider that the increasing use for cobalt in future technology advances such as battery development for rechargeable automobile batteries, super alloys, aircraft, space technology, wind turbines and solar energy will see a rapid growth in cobalt demand and an increasing interest in BPL’s large and well located cobalt deposits.
Production bottleneck of cobalt production: Cobalt mine production is dominated by bi-product copper mines (Democratic Republic of the Congo) and nickel deposits. Thackaringa offers an opportunity to invest in future cobalt production with low political and technical risk.
Advantage over laterite cobalt deposits: Because the Thackaringa cobalt mineralisation occurs within pyrite (FeS2), it can be readily concentrated to a pyrite concentrate which contains about 0.5% cobalt. This is not possible for laterite deposits which typically have cobalt grades of <0.05%.
Sulphur will be a valuable co-product: Further processing of the concentrate to produce cobalt will also provide sulphur and high iron residue. Sulphur is widely used in manufacture of fertiliser and in numerous industries as well as for many mineral processing operations and will add considerable value to future development scenarios. Other possible co-products include sodium feldspar and quartz which could be used in porcelain/tile manufacturing.
Broken Hill Base, Precious and Industrial Minerals Growing a multi-commodity position at Broken Hill BPL is leveraging off it’s strong presence in the Broken Hill region by acquiring a developing a suite of quality base, precious and industrial mineral projects.
An active exploration programme is planned for these projects during 2018.
Potential for zinc lead and silver: BPL’s exploration at Thackaringa has located 13 potential occurrences of Broken Hill style mineralisation (rich in zinc, silver and lead). Several of these have best potential for underlying mineralisation which may be of economic grade. One drill hole at the Railway prospect intersected base metal mineralisation containing up to 3.5% zinc and 15g/t silver over several metres width.
Mineral Sands Projects Subsequent to the successful divestment of non-core mineral sands assets in mid 2017 for over $3milion, BPL has retained a portfolio of mineral sands projects in the world class Murray Basin region, south of Broken Hill.
BPL has an experienced team Board of Directors and Executives who have an impressive track record of mineral discovery and development.
CREAGH O’CONNOR: CHAIRMAN
AM, FAIM, FAICD
Creagh has approximately 40 years experience as a chief executive and board member for a number of public and private companies. During this time he has been involved in managing a number of Australian and international oil, gas and mineral projects.
Creagh is an experienced board member and his most public role was with Cricket Australia as Director for 11 years and Chairman from 2005 to 2008. In addition he was Director of South Australian Cricket Association (SACA), Director of the International Cricket Council, Director of the Kerry Packer Cricket Foundation, Director of Rundle Capital Ltd, Governor of the Bradman memorial fund, Chairman of the Lords Taveners, Trustee of the Les Favell Foundation and Chairman of ACHA Health Ltd.
He is currently a director of A G O’Connor Pty Ltd and chairman of the Maurice de Rohan International Scholarship Fund.
TRANGIE JOHNSTON: MANAGING DIRECTOR
BSC (HONS), MSC, AUSIMM
Trangie Johnston is a geologist with 21 years’ experience in exploration, project development and mining activities. His diversified career spans the private, public, consulting and government sectors, with experience extensively throughout Australia and internationally.
He is currently a director of Cobalt Blue Holdings and has previously held corporate and senior management positions at KBL Mining Limited, MM Mining Limited, Compass Resources Limited and SRK Consulting Pty Ltd.
Trangie is experienced in a diverse range of ore deposit types, commodities and operations and has a sound understanding of geo-scientific, metallurgical and engineering principles. He has previously implemented programs for resource and reserve expansion through maiden discoveries and deposit extensions across the base and precious metals, bulks, energy and rare earth markets.
GEOFFREY HILL: NON-EXECUTIVE DIRECTOR
BEC, MBA, FCPA, ASIA, FAICD
Geoff was a director of BPL from 1989 to June 2014, and re-joined the board on 27 August 2015. He has extensive experience in the identification and implementation of mergers and takeovers and has acted for a wide range of corporate clients in Australia and overseas. Mr Hill also has extensive experience in providing corporate advice to mining companies.
He is Chairman of the International Pacific Securities Group. He is Chairman of the ASX Limited, Pacific American Coal Ltd and Asian Property Investments Ltd. He is a previous Chairman of Mount Gibson Iron Ore Limited and a Director of Talisman Gold Mines Limited.
MATTHEW HILL: NON-EXECUTIVE DIRECTOR
MBA, AFSL, FFIN, APDT
Matthew has over 20 years experience in financial services and investment banking. He is currently the Chief Executive Officer of New Talisman Gold Mines Limited (formerly Heritage Gold NZ Limited). Matthew is an experienced merchant banker having worked previously at Potter Warburg, Eventures (a joint venture between Newscorp and Softbank), Pitt Capital and Souls Private Equity Limited. Matthew specialises in resource and company listings on the ASX and NZX and acts for a number of multinational clients. Matthew holds a Graduate Diploma in Applied Finance and Master of Business Administration. He is a fellow of the FINSIA and a member of the Australian Institute of Company Directors.
DENIS GELDARD: NON-EXECUTIVE DIRECTOR
Denis has over 40 years technical and operational experience in mineral exploration and project development in Australia and internationally. He has over 20 years experience in the Heavy Mineral Sands Industry with companies such as Western Titanium Ltd, Associated Minerals Consolidated and Iluka Resources.
Denis is a Mining Engineering graduate from the Kalgoorlie School of Mines in Western Australia. He has managed and run a number of junior and mid-tier mining and exploration companies and mining operations over the past 40 years including directorships of a number of Australian listed mining and exploration companies.
Thackaringa Cobalt Shaping up as a world class deposit
The BPL tenements at Thackaringa, held in joint venture with ASX Listed Cobalt Blue Holdings Ltd (ASX:COB) cover near surface, very large cobalt deposits. The project is advancing towards the delivery of a PFS by June 2018, after which time it is expected that the project will move into a full, bankable feasibility study.
Quarterly Report for the quarter ended 30 June 2017
Exceptional Infrastructure supports the Thackaringa Project – the deposits are located beside the main trans-Australian railway, have excellent road access and are only 30 minutes drive from the mining City of Broken Hill (first class mining service industries, technical workforce, housing and community facilities. Excellent power and water supply options will support project development and proximity to Broken Hill will obviate the need for an accommodation camp or FIFO facilities.
Ownership Rights - BPL currently owns 100% of the legal interest in Thackaringa; COB holds 51% beneficial interest and can, on meeting certain milestones, retain that interest and ultimately move to 100% legal and beneficial interest.
To do so, apart from meeting project milestones, COB must also pay $7.5 million to BPL and pay a 2% net smelter return royalty on all cobalt production to BPL. BPL’s announcements provide more details on the ownership structure and joint venture terms.
As at 1st March 2018 the Company had on issue 147,773,401 shares distributed between approx. 900 shareholders (ASX code BPL)
Substantial shareholder was the Hill Family Group Pty Ltd with 34,371,000 shares (27.66%) as recorded on 21/09/2017.
The company has on issue 46,689,388 listed options with exercise price of 8c and expiry on 12/11/2019 (ASX code BPLO). There are also 7,900,000 unlisted options on issue.
- 147,773,401 listed shares
- Hill Family Group Pty Ltd owns 34,371,000 shares (27.66%)
- Options listed (8c expiry 12/11/2019): 46,689,388
Broken Hill Prospecting Limited (“BPL” or “the Company”) is a mining and exploration company which was established in 1999 by New Talisman Gold Mines Limited (formerly Heritage Gold NZ Limited) and So Co Limited. For a summary of BPL click here.
After a successful Initial Public Offering (IPO) which raised A$4.5million, BPL listed on the ASX and NZSX on 17 February 2011 (ASX/NZSX stock code: BPL and BPLOA)
Cobalt (Co) is a minor metal with many special qualities:
- Co is a major component in many new rechargeable batteries (electric cars, mobile phones, laptop computers). Many lithium-ion batteries contain up to 60% Co.
- Co is hard, heavy and has a high melting point. It used extensively in superalloys and high pressure and temperature resistant metals for use in applications such as in energy turbines, jet motors, military hardware, aircraft and space craft.
- Co is strongly magnetic and is used in magnets, often in preference to Ni, Mn and Fe
- Co in dyes/pigments has been used for many centuries for bright blue colouring.
- Co is a principle component of vitamin B12, essential for blood and brain. Co is used in human and animal food supplements.
- Co is used as; a catalyst, in jewellery, medical isotopes, cosmetics and many other applications.