Great points AzinAsia - always find value in your posts. The hugely increased price of cobalt currently is just one factor that makes the exploration of Dobsina worthwhile.
The high grades already found, and the likelihood of locating further veins, even if they do not equal the richness of historically mined ores, make the search compelling.
As in most mining ventures, "grade is king". It's worth a brief comparison with some other ASX listed cobalt explorers and developers, some already well on the way to commercial production.
Broken Hill based Cobalt Blue Holdings (COB), has completed initial feasibilty, and attracted financial backing from LG Chem. They have announced a grade of 852ppm over their large Thackaringa deposit. Sounds impressive. But when you convert that to a percentage basis, you get 0.0852% Co. At this grade, the project still stacks up. Capital costs - projected to be hundreds of $millions
At their Sunrise project in NSW, Clean Teq (CLQ) are well into devlopment. Their cobalt grade, at 0.11% Co, is better than at Thackaringa. They will also produce scandium and nickel. Capital costs in the hundreds of $millions. But projected to be more than commercially viable.
The Sconi deposit of Australian Mining (AUZ), comes in at a similar grade of 0.11% Co. Initial funding interest - again, high projected capital costs for production.
In the Kalgoorlie area Ardea Resources has deliniated a very large resource in an early stage development - with a grade of 0.06% Co.
With the present demand for cobalt , most of these projects are eiither already under development, or look like proceeding. They will take years to develop, at large capital and operating costs, and their product will likely be shipped long distances to be used in battery manufacture.
The historical grades mined at Dobsina were between 4% and 8% Co. Even if all of that material was mined and removed, (recent assays show there is still some there), lets assume that EUC might find reasonable amounts of 1% to 4% Co. That is still 10x to 40x the grade of our ASX peers.
And at these grades, the mining will not need the huge capital costs of collecting and processing the disseminated lower grade material.
With already present mining infrastructure, adits already existing, rail nearby, smelters and nearby customers waiting. And a local population ready to provide the labour, (some already on the job), supportive local mayor, and Slovakian government keen to see the development (discussions already held).
You have to wonder, considering all the above, whether the company is considering an early trial mining exercise if their current exploration identifies some decent Co grades in the underground targeted drilling now under way.
One thing is for sure. If the cobalt ore is there, the capital costs and time to production will compare more than favourably with the others mentioned above.
That explains some of the reasons why I am aboard.
But please, you need to do your own research.
EUC Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
(20min delay)