Major Geophysical Survey Planned for Cobalt, Base and Precious MetalsSydney, July 3, 2017 AEST (ABN Newswire) - Broken Hill Prospecting Ltd (ASX:BPL) received a first class Scoping Study for the Thackaringa Cobalt Project from its joint venture partner Cobalt Blue Holdings Ltd (ASX:COB).
The results of the Study are positive and importantly provide strong encouragement for the joint venture to commit to the next stage of exploration and development.
- Broken Hill Prospecting Ltd (ASX:BPL) has received a first class, positive Scoping Study for the Thackaringa Cobalt Project by its joint venture partner Cobalt Blue Holdings Ltd (ASX:COB)
- The Scoping Study indicates that an economically and technically viable project is possible at Thackaringa
- The two companies have committed to jointly undertake a major geophysical survey late in 2017 covering the entire Thackaringa Project. The survey will further assess cobalt potential as well as test known base and precious metal prospects owned 100% by BPL outside the Thackaringa joint venture
- Terms of the Stage 1 Thackaringa joint venture agreement between BPL and COB have been renegotiated to enable the best outcome for both parties
BPL's Chief Executive Officer Trangie Johnston commented:
"The Thackaringa Cobalt Project JV received a Scoping Study that we are very pleased with. It demonstrates a technically sound and economically robust project. The JV partners are excited about the next stage, particularly because global demand for cobalt has pushed metal prices 250% during the past 12 months.
In addition to the Thackaringa JV, BPL plans to ramp up base and precious metal exploration activities in its own right, with confirmation of a major geophysical survey program to greatly enhance our assessment of multiple prospects within the Thackaringa tenements. Modern technology should reveal considerable information that we don't know about the geology - all targeted deposit types should be identified."
THACKARINGA COBALT PROJECT SCOPING STUDY COMPLETED AND DELIVERED
A market release outlining Scoping Study details within the regulatory framework of ASX Listing Rules and ASIC (214) guidelines is planned for coming weeks.
BASE & PRECIOUS METAL EXPLORATION ACTIVITY RAMPS UP
BPL retains base and precious metal exploration rights over the Thackaringa tenements and is planning to ramp up field activities in the H2 2017.
BPL considers the geological setting to be prospective for mineralisation styles additional to cobaltiferous-pyrite including:
- Stratiform Broken Hill Type (BHT) Copper-Lead-Zinc-Silver
- Copper-rich BHT
- Epigenetic Gold and Base metals
Current base and precious metal targets include (see Figure 1 in the link below):
- Pyramid Hill (Cu-Au-Ag)
- Himalaya North (Cu-Pb-Zn-Ag)
- Camels Hump (Cu-Zn)
- Ram Paddock (Cu-Co)
- Alders Tank (Co)
- Old Coolgardie North and West (Cu-Au)
- TSQV (Cu-Au-Ag)
These targets have been identified from BPL's previous drilling and surface sampling work.
MAJOR GEOPHYSICAL SURVEY
A major geophysical survey program is being planned for the H2 2017 covering the entire Thackaringa Project tenement area (63km2).
High resolution aerial EM & Magnetics will be used in conjunction with geological mapping to produce a new tenement scale 3D geological model to assist targeting all styles of mineralisation.
The survey is expected to greatly advance our geological knowledge and targeting ability. It should provide greater information than previous surveys were able to show about the depth of cobalt bearing rock formations at Railway, Pyrite Hill and Big Hill.
COBALT BLUE FARM IN JOINT VENTURE
The successful spin-off of Cobalt Blue Holdings Limited (ASX:COB) was completed in February 2017, with investors seeking shares exceeding the $10 million maximum being offered. The deal was an important initiative for BPL to realise significant value from its Thackaringa Cobalt Project.
An important part of the spin-off was that BPL entered a detailed farm-in joint venture agreement with COB to finance and undertake an extensive exploration and development program at Thackaringa (JV Agreement).
COB can earn 100% of the project if it completes a set of milestones before 30 June 2020.
The recently completed FY17 work program delivered strong results and a significant resource upgrade for the Thackaringa Project. A 54.9 Mt combined Indicated Resource (6.5 Mt) and Inferred Resource (48.4 Mt) was announced on 5 June 2017.
Following the results of the FY17 work program, BPL and COB agreed certain changes to the JV Agreement (see the link below for details).
To view tables and figures, please visit:
About Broken Hill Prospecting Ltd
Broken Hill Prospecting Ltd (ASX:BPL) is an Australian exploration company focussed on the discovery and development of strategic mineral resources across two primary projects the Murray Basin Heavy Mineral Sands Project and the Thackaringa Cobalt & Base/Precious Metal Project.
Cobalt Blue Holdings Limited
Broken Hill Prospecting Ltd