Thackaringa Cobalt Project Update Thackaringa Cobalt Project...

Thackaringa Cobalt Project Update


Thackaringa Cobalt Project Update
Broken Hill Prospecting Limited (ASX: BPL) announced on Wednesday 4 July,
2018 that it received the Thackaringa Cobalt Project Pre-Feasibility Study (PFS)
from Cobalt Blue Holdings Ltd (ASX: COB) as Manager of the Thackaringa Joint
Venture (TJV) (TJV Manager).

The PFS details released to the market by COB on Wednesday 4 July, 2018
confirm that the Thackaringa Cobalt Project is of global significance as a
sustainable, low-cost source of high purity cobalt sulphate for the battery
revolution. It recommends advancement to a Bankable Feasibility Study (BFS).

The PFS places a significant value on BPL’s 2% Net Smelter Royalty (NSR)
on cobalt produced at Thackaringa, anticipated to deliver approximately
A$43 million to A$48 million revenue over the life of mine. BPL is currently
evaluating the basis of the PFS royalty and its market value today.

COB advised BPL that it had satisfied the Stage 2 milestones under the TJV
and the individual requirements are still being confirmed by BPL. In addition,
through the TJV Manager, the TJV Management Committee has appointed an
independent expert to review the PFS. As previously advised, that review is
expected to be completed by the end of August 2018.

BPL has also been advised by the TJV Manager that an alternative “cobalt
concentrate only” process is being considered as a potential pathway to
commercialisation. However, the “cobalt concentrate only” process and strategy
was not addressed in the PFS.

With reference to COB’s announcement on 26 July, 2018, BPL notes that
whichever BFS strategy is ultimately adopted, the timeline to delivery will be
measured against the TJV contractual obligations and the requirements to
demonstrate a bankable project.

BPL is working with its partner COB and is confident that the exceptional
potential of Thackaringa to become a world class cobalt producer will be
delivered once the optimal process route is identified.

As the tenement holder and an active explorer in the Broken Hill region, BPL is
delighted with the outcome of the PFS. It vindicates the company’s long held
exploration strategy and highlights the ongoing exploration potential of its
major assets.