kylylahti's cobalt is in with the nickel, in whatever sulphide mineral that is. VCN's initial proposal was for an expensive hydromet plant to hot acid leach and produce a NiOH and CoOH product.
The current mine plan runs on Cu-Zn-Au and they just stockpile the Ni-Co sulphides. Its only a few kilotonnes of concentrate a year, really.
This results in savings of basically US$100M on startup, and is why the mine runs by effectively consigning these products to the waste bin (initially).
My guess is they'll stockpile till they have 15-20Kt contained Ni and 2-5Kt contained Co and then be able to put up a case for treating it. Thats several hundred bricks of metal sitting in a shed, someone will take it.
I'm yet to be convinced of the saleability of CDU's cobalt. Recoverability, yes. CDU had to put their nuts on the block with that JORC and say they thought Co was economically recoverable/saleable, so I don't know.
Mutooroo, which Havilah had, has been known about for donkeys ages. The cobalt is, as far as I'm aware, locked up in pyrite and thus fairly refractory. Payability is low. Hell, even the congolese Copperbelt ores which can go to 1% Co only have cobalt payability of between 20-40% usually.
What this shows is In Ground Value and headline recoveries have to be weighed against TC/RC's, payability, etc. My feeling is, 1.5% Co in a 23% Cu concentrate isn't as payable as CDU cheerleaders and the company suspect, when you sit down with, eg, LS Nikko and get to brass tacks.
AOH Price at posting:
12.7¢ Sentiment: LT Buy Disclosure: Held
