"The big questions I have for HAV, after having a quick look (value /tonne = impressive) - how expensive is CAPEX likely to be? And how much work is there ahead, i.e how far off a scoping study are they with Mutooroo, what's nearby infastructure like?"
Solarbat,
Project works on copper alone, with Co and Au as a bonus.
Little to no over burden (in a 130 metre open pit).
Flotation of copper and cobaltian pyrite concentrate (7 year mine plan, 0.5 million tonne per annum conventional grinding and flotation circuit that will recover copper concentrate and pyrite concentrate for cobalt) is estimated to have a relatively low CAPEX of the order of $30 million.
A pre-feasibility study and permitting approval work is under way. See HAV Tweet below:
Discussions with a number of potential funding partners is ongoing for Mutooroo. Other financing options for development could include advance sales of copper concentrates.
Mutooroo Cu-Co-Au deposit is located about 60 km west of Broken Hill, and 16 kms south of the Transcontinental Railway. Water and electricity will be an issue.
To date, only about one third (approximately 700 metres) of the known mineralised strike of 2.1 kms has been drilled by Havilah at Mutooroo. So much more upside expected for both cobalt and copper from Mutooroo.
In addition, drilling of nearby Cu-Co prospects in the Mutooroo Cobalt District is likely this calendar year.
Work is in progress on determining the optimum method of recovering Mutooroo cobalt from the pyrite via testing of:
1. Acid leaching
2. Bacterial oxidation
3. Cobalt Blue Holdings four-stage processing method that starts with producing a cobalt sulphide concentrate, followed by calcination of the concentrate, leaching and recovering the purified cobalt sulphate (results for No.3 due by 30 April 2018). #
# My preference, given electricity and water resources would be at COB's proposed plant. HAV and the rest of the Broken Hill Region Cobalt Alliance can pay a tolling fee.
HAV Management has previously talked about a roaster and sulphuric acid plant to extract the cobalt from the cobaltian pyritet. It would recover all valuable metals (ie copper, cobalt and gold) plus appreciable sulphuric acid, iron ore and co-generated electricity. But CAPEX would be of the order of $350 million. Which is why I like the potential arrangement with COB.
Cheers
These are only my random thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.
