Looks very good , on and upwards from here
Highlights
Ta Khoa Nickel – Copper – PGE Project
Upstream Business Unit (UBU)
• Multiple drill rigs active focussed on resource definition drilling and exploration for
disseminated sulfide (DSS) and massive sulfide vein (MSV) prospects at the Ta Khoa
Nickel – Copper – PGE Project in northern Vietnam
• Total of 14,502 metres of core drilling was completed in the March quarter, of which
5,285 metres were infill drilling at the large Ban Phuc DSS open pit orebody
• Infill drilling continued at the Ban Chang MSV prospect to support resource
estimations and preliminary mining studies which are ongoing
• Testing of Electro-magnetic (EM) geophysics targets confirmed additional high
grade MSV potential at the King Snake and Ta Cuong prospects:
• At King Snake high-grade massive sulfide nickel, copper and platinum group
elements (PGEs) were confirmed (refer to ASX announcements dated 4 February 2021, 16
February 2021 and 11 March 2021); and
• At Ta Cuong significant sulfide mineralisation was identified in new Taipan
Discovery Zone (TDZ), where drill hole TC21-03 intersected 39.70m of sulfide
mineralisation including DSS, semi-massive sulfide (SMSV) and MSV (refer ASX
announcement 25 February 2021)
Downstream Business Unit (DBU)
• The Company confirmed that separate Pre-Feasibility Studies (PFS) will be delivered
for its Upstream and Downstream business units
•
The Downstream PFS is anticipated to be completed by June/July 2021 and will
consider expanded downstream refining capacity, which has potential to transform
Blackstone into a globally significant Class 1 nickel producer
• Feedstock, namely nickel in concentrate, for the expanded planned refining
capacity is expected to include both third – party concentrate and Blackstone’s
potential orebodies within the Ta Khoa district in Northern Vietnam
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30 April 2021
• Blackstone’s expanded downstream refinery is driven by strong indicative demand
for the Company’s planned downstream products which will include
Nickel:Cobalt:Manganese (NCM) precursor products suitable for the Lithium-ion
battery industry, for example NCM811
• Blackstone intends to collaborate with Tier 1 partners to unlock the value of its
expanded downstream refinery strategy, including EcoPro who are the world’s
second largest manufacturer of cathodes and a major shareholder of Blackstone.
Corporate
•
Letter of Interest signed with global commodity trading group Trafigura as part of
its downstream refining strategy• Highly-experienced hydrometallurgical engineer Tony Tang appointed General
Manager Project Development – Downstream
• Blackstone to spin out non-core gold assets into new Codrus Minerals Limited IPO
• Blackstone commences trading on the US-based OTCQX Best Market
•
Cash balance as at 31 March 2021 of A$19.2mBlackstone Minerals’ Managing Director Scott Williamson commented:
“The March 2021 quarter was transformative for Blackstone as plans to expand our
downstream refinery capacity were outlined to the market.
Executing on our planned
expanded downstream refinery strategy will see the Company become a globally significant
Class I nickel producer.”“During the March 2021 quarter the company continued an aggressive drilling program,
adding confidence to the existing resource base as well as successfully targeting new
massive sulfide opportunities including the King Snake prospect. The Ta Khoa district
remains largely untested and we are confident based on our existing resource, initial success
at multiple MSV deposits and from future exploration success, that the Ta Khoa Nickel – CuPGE project will be a significant feedstock for our downstream refinery in Vietnam for many
years to come”
“The formalisation of Blackstone’s relationship with Trafigura, one of the largest commodity
traders in the world, was an important milestone for the March 2021 quarter. The ability for
our downstream business to access third-party concentrate will be important to meet the
burgeoning demand for nickel driven by rapid growth in the Lithium-ion battery industry.
During the quarter Blackstone continued to collaborate with Trafigura and the Company
looks forward to presenting outcomes of the PFS for its downstream refinery business in
June / July this year.”
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30 April 2021
Ta Khoa Project Snapshot
Blackstone Minerals Ltd (ASX: BSX / OTCQB: BLSTF / FRA: B9S) is focused on building an
integrated upstream and downstream processing business in Vietnam that produces NCM
Precursor products for Asia’s growing Lithium-ion battery industry (refer Figure 1).
Figure 1 –Ta Khoa Project Snapshot
The Company owns a 90% interest in the Ta Khoa Nickel-Cu-PGE Project. The Ta Khoa
Project is located 160km west of Hanoi in the Son La Province of Vietnam and includes an
existing modern nickel mine built to Australian standards which is currently under care and
maintenance. The Ban Phuc nickel mine successfully operated as a mechanised
underground nickel mine from 2013 to 2016.
In October 2020 the Company completed a Scoping Study which investigated mining the
Ban Phuc Disseminated nickel sulfide ore body and the construction of one downstream
refinery. The Company is now advancing the Ta Khoa Project through two separate PFS
studies for the UBU and DBU.
The DBU PFS will consider expanded downstream refinery capacity, for which feedstock
will be met from the Ta Khoa Nickel – Cu – PGE mine as well as third party concentrate. The
UBU PFS will contemplate the option to mine several higher grade MSV deposits, which has
the potential to reduce initial upfront capital requirements by enabling the Company to
restart the existing Ban Phuc Concentrator (450ktpa)
By combining the Company’s existing mineral inventory (Ban Phuc DSS), exploration
potential presented by high priority targets such as Ban Chang and King Snake and the
ability to source third party concentrate, Blackstone will be able to increase the scale of its
downstream business to meet the rising demand for downstream nickel products.
Ta Khoa Nickel-Cu-PGE
Project
Northern Vietnam
Multiple Feed Sources, Nickel in Concentrate
NCM Precursor Production
MULTIPLE CUSTOMERS
Third Party
Feed Sources
UBU 90%
interest
?
DBU
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30 April 2021
Ta Khoa Project - Upstream Business Unit
The ongoing work and timelines for the UBU is described below (refer Figure 2)
Figure 2 – UBU Milestones
The UBU PFS being targeted for delivery in Q3/Q4 2021 will report on the following:
• Incorporating high-grade MSV deposits into the mine plan, as a result of ongoing
exploration success at multiple prospects including Ban Chang, King Snake and Ta
Cuong (refer Figure 3);
• The restart and possible expansion of the existing 450ktpa concentrator, which will
be supported by the inclusion of higher-grade feed into the mine plan. This has
the potential to improve project NPV through deferral of significant upfront capital,
mine life extension, and lower technical risks; and
• Drill out and appropriate analysis and mine sequencing of large, DSS orebodies
including Ban Phuc and Ban Khoa (refer Figure 3);
Figure 3 – Ta Khoa Nickel – PGE (Cu-Co) district
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30 April 2021
Exploration & Resource Definition Drilling
During the quarter a total of 14,502m were drilled with the bulk of the work focussed on
resource development (61%) and resource extension drilling (31%). The table below
summarises drill metres by project area across exploration, resource extension and
resource development objectives.
Exploration: 8% Resource Extension:
31%
Resource Development:
61%
Holes Meters Holes Meters Holes Meters
Ban Phuc - - - - 33 5,285
Ban Chang - - 2 177 18 1,593
King Snake - - 14 3,022 9 2,015
Ban Khoa - - 9 1,280 - -
Ta Cuong 9 1,130 - - - -
9 1,130 25 4,479 60 8,893
Drilling Completed Q1 2021 (holes, meters) 94 14,502
Table 1– Drilling completed Q1 2021
Ban Phuc (DSS)
At the Ban Phuc DSS open pit deposit, Blackstone continued with infill drilling to upgrade
the confidence of the current resource estimate, including the targeting of inferred
mineralisation (refer Table 1). A total of 5,286 metres were drilled at Ban Phuc during the
Mar’21 quarter and assay results received will be incorporated into a resource update
expected as part of the UBU PFS in Q3/Q4 2021.
Ban
Phuc
Maiden
Resource
Mt Ni
(%)
Cu
(%)
Co
(%)
Pd
(g/t)
Pt
(g/t)
S
(%)
Ni
(t)
Cu
(t)
Co
(t)
Pd
(oz)
Pt
(oz)
Indicated
Resources 44 0.52 0.06 0.01 0.11 0.09 0.45 230,000 27,000 5,800 160,000 130,000
Inferred
Resources 14 0.35 0.01 0.01 0.03 0.03 0.13 51,000 1,600 1,100 12,000 15,000
Table 2 – Blackstone maiden resource estimate for Ban Phuc DSS
Ban Chang (MSV)
The Company’s most advanced MSV target is the Ban Chang Prospect. Drilling during the
quarter was primarily infill to support ongoing resource estimation work and mining
studies.
Drilling at Ban Chang has identified multiple massive sulfide lenses, which are often
associated with broader disseminated sulfide zones (refer Figure 4). This style of mineralisation
potentially lends itself to a mechanised underground mining scenario.
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30 April 2021
During the Mar’21 quarter assay results were received at Ban Chang for drilling
completed in calendar year 2020 (refer ASX announcement 11 March 2021). Significant intercepts
included:
1 Platinum (Pt) + Palladium (Pd) + Gold (Au)
Figure 4. Ban Chang Plan View
King Snake (MSV)
Blackstone’s maiden drilling program at the King Snake prospect returned encouraging
results, intersecting MSV mineralisation and associated disseminated DSS.
King Snake is an MSV prospect, located 1.5km north-east of the processing facility (refer Figure
3). At King Snake, MSV and high-grade brecciated Ni-Cu-Co-PGE (Platinum – Pt +Palladium
BC20-34 1.92m @ 1.03% Ni, 0.60% Cu, 0.06% Co & 0.44g/t PGE1
from 66.65m
incl. 0.91m @ 1.99% Ni, 0.92% Cu, 0.12% Co & 0.84g/t PGE1
from 66.65m
BC20-36 7.10m @ 0.66% Ni, 0.45% Cu, 0.06% Co & 0.18g/t PGE1
from 56.00m
incl. 0.85m @ 1.91% Ni, 0.60% Cu, 0.13% Co & 0.29g/t PGE1
from 58.45m
BC20-38 5.40m @ 0.60% Ni, 0.47% Cu, 0.05% Co & 0.20g/t PGE1
from 89.20m
incl. 2.22m @ 0.92% Ni, 0.53% Cu, 0.08% Co & 0.24g/t PGE1
from 91.38m
BC 20-39 3.07m @ 1.39% Ni, 0.79% Cu, 0.08% Co & 0.78g/t PGE1
from 63.80m
BC 20-44 4.72m @ 1.78% Ni, 0.83% Cu, 0.08% Co & 1.14/t PGE1
from 87.70m
incl. 0.35m @ 2.57% Ni, 0.32% Cu, 0.12% Co & 1.03/t PGE1
from 88.30m
0.89m @ 3.72% Ni, 0.73% Cu, 0.18% Co & 1.78g/t PGE1
from 89.26m
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30 April 2021
– Pd + Gold – Au) sulfides/gossan are associated with tremolite-altered mafic/ultramafic
rocks.
Blackstone's drilling at King Snake is focusing on new EM geophysics targets which extend
down plunge to the west of historic drilling. Initial visual results suggest greater thickness
of sulfide mineralisation down plunge of historic drilling (refer to ASX announcements dated 4 February
2021, 16 February 2021 and 11 March 2021).
New intersections together with historic drill results defined a strike length of more than
800m at King Snake which includes MSV, semi-massive sulfide vein (SMSV) and DSS
mineralisation, with the mineralisation open in multiple directions (refer Figure 5).
Figure 5. King Snake Plan View and Long Section
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30 April 2021
In March, Blackstone reported it had received several batches of assay results, including
some of the maiden drill holes completed at King Snake. These included:
1 Platinum (Pt) + Palladium (Pd) + Gold (Au)
With resource estimation underway at Ban Chang, King Snake has become the Company’s
highest priority MSV exploration target. The Company is targeting a maiden resource at
King Snake in 2021. King Snake may be incorporated into ongoing mining and processing
studies as sufficient data becomes available.
Ta Cuong (MSV) discovery
In February, Blackstone reported the discovery of significant new sulfide mineralisation in
a previously untested zone within the Ta Cuong prospect (refer Figure 6). Ta Cuong is a NickelPGE-Cu-Co MSV prospect located 6km along strike from the Ban Phuc MSV nickel mine
and existing processing centre. The prospect is associated with the Ban Khang intrusive
complex and is proximal to a major regional fault zone which also transects the Ban Phuc,
King Snake and Ban Chang MSV zone.
Blackstone reported a result of:
TC21-03: Intersected 39.70m of sulfide mineralisation including DSS, SMSV and
MSV in the Taipan Discovery Zone (TDZ).
Table 3. Sulfide mineralisation zones in TC21-03
From
(m)
To
(m)
Width
(m)
Sulfide
(type)
Sulfide
(%)
15.15 30.18 15.03 DSS 1-15
30.18 30.32 0.14 MSV 70
30.32 31.05 0.73 DSS 4-5
31.05 31.56 0.51 SMSV 40-45
31.56 32.95 1.39 DSS 3-5
32.95 33.95 1.00 SMSV 25-30
33.95 37.10 3.15 DSS 18-20
37.10 37.80 0.70 DSS 3-5
37.80 40.00 2.20 SMSV 22-25
40.00 40.45 0.45 DSS 8-10
40.45 43.63 3.18 SMSV 25-30
43.63 44.72 1.09 DSS 4-5
44.72 47.40 2.68 SMSV 35-40
47.40 51.40 4.00 DSS 4-6
51.40 54.85 3.45 DSS 1-3
95.35 96.94 1.59 DSS 1
KS20-01A 0.60m @ 2.79% Ni, 3.81% Cu, 0.10% Co & 4.85g/t PGE1 from 193.05m
KS20-02 5.88m @ 1.22% Ni, 0.49% Cu, 0.04% Co & 4.67g/t PGE1 from 131.74m
incl. 1.81m @ 0.77% Ni, 0.44% Cu, 0.03% Co & 12.53g/t PGE1 from 131.74m
1.18m @ 3.72% Ni, 0.84% Cu, 0.12% Co & 2.41g/t PGE1 from 135.47m
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30 April 2021
The discovery was made in the first drill-hole of a previously untested zone within the Ta
Cuong prospect, as a result of ongoing systematic testing of mapped EM conductors. The
discovery hole TC21-03 is currently being followed up with further drilling and Blackstone
will test the strike and depth extent of the TDZ.
Figure 6. Cross Section 44700E showing TC21-03
Ta Khoa Project - Downstream Business Unit
In March 2021 the Company confirmed that the ongoing PFS for the DBU is considering
significantly expanded refining capacity.
The updated strategy will see Blackstone working towards delivering multiple milestones,
including the proof of concept through a pilot plant, securing offtake agreements, securing
suppliers and the ramping up of downstream refinery lines (refer Figure 7).
Figure 7 – Downstream Business Unit, Key Deliverables and Timelines
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30 April 2021
Key aspects the downstream PFS will consider include:
• Expanded planned refining capacity enabling the treatment of both third party
concentrate and Blackstone’s potential orebodies within the Ta Khoa district in
Northern Vietnam;
• Enhanced scale and shared infrastructure, which the Company anticipates will lead
to a reduction in project capital intensity;
• Reduction in unit operating costs driven by economies of scale, as well as improved
refinery performances due to the ability to blend concentrates;
• Flowsheet for the recovery of additional by-products. Preliminary testwork and
desktop studies have identified an economic flowsheet for the recovery of by –
products from the Ta Khoa DSS concentrate. Further studies will investigate the
performance of Ta Khoa MSV ores and provide PFS level capital and operating cost
estimates; and
• Blackstone anticipates the downstream PFS to be completed by June / July 2021.
The PFS is progressing designs for an expanded refinery which will enable the production
of a range of NCM precursor products, for example NCM811, which attract a strong
premium to metal prices (refer Figure 8).
Figure 8. Illustration of Nickel Product Payability vs Metal Spot Price
Source: SMM (Shanghai Metals Market), Benchmark Mineral Intelligence
In August 2020, The Simulus Group (Simulus, https://thesimulusgroup.com.au) commenced
development of the downstream PFS metallurgical testwork and engineering scope. The
works focused on further development of the Scoping Study strategy with a basis of 200ktpa
(one train) concentrate feed from the Ban Phuc DSS deposit, producing a NCM811 product
via a mixed hydroxide precipitate intermediate product.
60%
70%
80%
90%
100%
110%
120%
130%
140%
150%
Nickel
Concentrate
MHP Nickel Metal Nickel Sulfate NCM 811
Precursor
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30 April 2021
In late 2020 and early 2021, Blackstone’s Ta Khoa upstream exploration success created the
opportunity to start the downstream NCM processing plant on nickel concentrate sourced
from Ta Khoa massive sulfide ores. Downstream benefits of this strategy include:
• Reduced capital and operating cost due to reduced acid consumption;
• Higher NCM output due to higher concentrate grade and better leaching conditions;
• Reduced capital and operating cost due to lower MgO in feed; and
• Higher by-product credits for example platinum group elements (PGE).
In support of this strategy, Blackstone began discussions with third party concentrate
suppliers as make-up concentrate feed to fill any shortfall in concentrate supply from Ta
Khoa. This strategy quickly grew to encompass additional feed stock and an expanded
downstream strategy.
In line with this emerging strategy, Blackstone announced its up-scaled downstream
intentions in January 2021 with the signing of a non-binding Letter of Interest (LoI) with
Trafigura for the supply of sulfide metal concentrates as third-party feed sources.
As a result of this shift in strategy, Blackstone intends to expand the PFS metallurgical
testwork program and engineering scope of works. The expanded program will test multiple
blends of Ta Khoa concentrate and third party concentrates to optimise the plant design and
confirm metallurgical performance. This has resulted in delay to completion of the
downstream PFS, with results of the downstream PFS to be published by June / July 2021.
Gold Bridge Project (100% interest)
The Gold Bridge Project (367 km² of tenure), formerly the Little Gem - BC Cobalt Project, is
located 180 km north of Vancouver in British Columbia, Canada. The Project was
discovered in the 1930s by prospectors identifying a pink cobalt-bloom on weathered
mineralisation that led to three adits being developed. A total of 1,268 m of drilling was
completed from underground and detailed channel sampling was taken from the adits.
Blackstone acquired the Gold Bridge Project in October 2017 and has since completed an
extensive exploration program including drilling, geochemical and geophysical surveys,
with the initial results indicating potential for the project to host a world class Cobalt Belt in
British Columbia.
During the September 2020 quarter, Blackstone completed the 2020 field season with
ongoing data collation, administration and first nations engagement. During the 2018 field
season Blackstone identified a number of major Copper-Gold-Cobalt targets centred on
the Jewel prospect, located 1.1 km north-northeast of the Little Gem prospect. The soil
anomalies are greater than 1.5 km long and coincide with several significant IP targets,
which are indicating a large sulfide bearing body at depth. The Copper, Gold and Cobalt
soil anomalies are favourably located within a significant structural setting near the contact
between the granodiorite and serpentinite.
Blackstone’s geological model for the Jewel prospect suggests the Copper-Gold-Cobalt
prospect is well located within a similar geological setting to the underground mines of the
world class Bou-Azzer primary Cobalt district in Morocco. The majority of the high grade
underground primary Cobalt mines at Bou-Azzer are located near the contact of the
serpentinised ultramafic and the quartz diorite. The historical Jewel Mine is likewise located
12
30 April 2021
within close proximity to the contact of the serpentinite and granodiorite bodies. With the
discovery of Cobalt-Gold mineralisation at Erebor during the 2018 field season returning
grades of up to 2.3% cobalt, 32 g/t gold, 1.6% copper and 1.1% nickel combined with the
multiple largescale IP anomalies indicating the potential source of the high-grade
mineralisation at Little Gem, Erebor, Jewel and Roxey, the Company continues to unlock
the potential for multiple deposits in a region with geology analogous to the Bou-Azzer
primary Cobalt district in Morocco (>50 deposits and over 75 years of Cobalt production).
Regional targets continue to be generated from the data collected through prospecting
and stream sediment sampling across the entire 48 strike km of untested geology
prospective for further primary Cobalt and Gold mineralisation. Blackstone is actively
seeking joint venture partners for the Gold Bridge Project.
Corporate
During the March 2021 quarter the Company achieved a number of important corporate
objectives.
Letter of Interest signed with Trafigura
In January, Blackstone announced it had signed a Non-Binding Letter of Interest (“LOI”) with
Trafigura Pte Ltd (“Trafigura”) as part of its strategy to upscale its downstream refining
business and its vision to become a significant global supplier of downstream nickel
products for the lithium-ion battery industry.
The LOI relates to a potential agreement for Trafigura to supply certain quantities of nickel
and cobalt products to Blackstone, in respect of the production by Blackstone of
downstream products for the Lithium-ion battery industry at the Ta Khoa Nickel Project in
Vietnam.
Trafigura is one of the largest physical commodities trading groups in the world and a
leading physical commodities trader involved in copper, zinc, lead, nickel and cobalt
trading.
This intended arrangement reflects the expectation by Blackstone that additional
downstream refining capacity will be met by materials sourced from third parties.
Management Team
Blackstone announced the appointment highly-experienced hydrometallurgical engineer
Tony Tang as General Manager Project Development – Downstream in March following the
Company outlining its plans to expand downstream refining capacity and technical
capability (refer ASX announcement 17 March 2021).
Mr Tang is a pioneer of nickel processing solutions and has led several R&D initiatives in
connection to the Lithium-ion battery industry. He has extensive experience in the end-toend design and development of second-generation hydrometallurgical nickel projects,
including spending nearly a decade at the Murrin Murrin operations.
Mr Tang has collaborated with leaders in the battery industry and his experience includes
R&D during the early stages of development of Nickel: Cobalt: Manganese (NCM)
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30 April 2021
precursors, achieving high purity NCM acetate precipitate for several confidential clients
based in Japan.
Mr Tang is a chartered professional member of AusIMM and has worked with top tier
engineering consulting firms where he extended his excellence in feasibility studies,
detailed design, construction, commissioning, operation ramp up and sustaining capital
projects execution. He has led many complex chemical processing projects and has been
a process matter expert on the panel for several studies including the Pt Antam – direct
nickel process, Arafura Nolan, Hastings - Brockman, and Tianqi (LHPP1 &2) lithium projects.
Commencement of OTCQX trading
During the quarter, Blackstone commenced trading on the US-based OTCQX Best Market
under the code BLSTF after trading on the OTCQB since December 2020.
The OTCQX Best Market is the highest market tier of OTC Markets on which 11,000 US and
global securities trade. To be eligible, companies must meet high financial standards,
follow best practice corporate governance, demonstrate compliance with US securities
laws, be current in their disclosure, and have a professional third-party sponsor
introduction.
Advantages of this to North American investors include:
• Trades and settlements are in US Dollars (USD);
• Trading in the North American time zone;
• The OTCQX share is the same class of Ordinary Share to ASX traded stock (ASX:
BSX), not a synthetic. The shares are simply registered in two different registries.
• Trading on OTCQX will further enhance the visibility and accessibility of the
Company to U.S. investors.
Blackstone’s primary listing will continue to be the Australian Securities Exchange (“ASX”).
Spin out of non-core assets
On 15 January 2021, the Company announced the decision to spin out several non-core
gold assets into a new Initial Public Offering (“IPO”), Codrus Minerals Limited (“Codrus”)
and seek a listing on the Australian Securities Exchange (ASX).
The Company currently plans to spin out its Record Mine Project, Silver Swan South Project,
Red Gate Project, and Middle Creek Project, via its wholly owned Australian subsidiary,
Codrus.
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30 April 2021
Cash Position
As at 31 March 2021, the Company had approximately $19.2m cash on hand, following
payments of:
• $3,186,000 on exploration activities (refer to Item 1.2(a) of Appendix 5B), relating to
exploration and studies costs at its Ta Khoa Nickel-Copper-PGE Project. Full details
of exploration activity during the quarter are set out in this report (ASX Listing Rule
5.3.1);
•
No substantive costs incurred on mining and development activities during the
quarter (ASX Listing Rule 5.3.2); and
• $241,000 of payments made to related parties or their associates (refer to Item 6.1
of Appendix 5B) including (ASX Listing Rule 5.3.5):
• Directors’ fees, salaries, superannuation, and consulting fees of $146,000;
and
• Office recharges including rent and share service charges of $95,000 to
related entities of which the directors directly do not receive a financial
benefit and are on an arm’s length basis.
Authorised on behalf of the Board of Blackstone Minerals Limited
Ends.
Scott Williamson
Managing Director
For more information, please contact
Scott Williamson Dhanu Anandarasa Patrick Chang
Managing Director Manager Corporate Development Head of Corporate Development
+61 8 9425 5217 +61 8 9425 5217 +61 8 9425 5217
[email protected] [email protected] [email protected]
