Ann: Half Year Accounts, page-2

Interesting part of the half yearly report:

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The Company is also progressing a Feasibility Study for the mining and processing of both the Copper Lode and Cobalt Peripheral Resources at Walford Creek. The Study is refining metallurgical process parameters set out in the 18 April 2017 Cobalt Roasting Scoping Study, which includes a concentrator to produce separate copper, lead and zinc concentrates, and a roaster to produce a cobalt rich calcine, sulphuric acid, and possibly zinc and silver.

As part of this study, a number of logistics and infrastructure options have been reviewed to maximise the value of the sulphuric acid product.The metallurgical testwork program continued during the half year period with the following work:
• Extended elemental analysis conducted on the 19 locked cycle test products generated to date. All of the cobalt concentrates produced from the locked cycle testwork have a product quality suitable for roasting and subsequent leach.

• Batch roasting and cobalt were completed at Outotec facilities in Germany. Roasting conditions have now been selected with a pilot roasting program scheduled. Following completion of the roaster pilot optimisation, cobalt leaching will be conducted with cobalt rich solution used for cobalt product tests.

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In the previous scoping study they were talking about producing cobalt hydroxide as their final product. This is an intermediate product to produce either cobalt sulfate or cobalt metal.
They are now talking about conducting cobalt product tests leached from cobalt rich residue - which I assume means that they are looking at producing cobalt sulfate.
Cobalt sulfate is the battery raw material that if they can produce to a high enough spec this can be a direct input to battery producers - this will sell at a much better price than selling a cobalt hydroxide. Cobalt hydroxide conversion to cobalt sulfate uses sulfuric acid which we have lots of so makes perfect sense if they do produce cobalt sulfate.

I am assuming part of the delays in met test work are due to this extension.