THE BOURSE WHISPERER: Broken Hill Prospecting has updated the mineral resource for its Pyrite Hill cobalt deposit at Broken Hill in New South Wales.
The update has increased the deposit’s size from 10.6 million tonnes of 2.2 pounds per tonne of cobalt to an Inferred Resource of 16.4 million tonnes of 1.83 pounds per tonne cobalt.
This represents a 55 per cent increase in contained cobalt.
Source: Company announcement
According to Broken Hill Prospecting the study also defined additional potential for between 14 million and 24 million tonnes of cobalt mineralisation of similar grade on the fringe of this resource at Pyrite Hill.
Both the Pyrite Hill JORC Code-compliant Inferred Resource and potential mineralisation occur from near surface to 300 metres depth and are open at depth and along trend to the northwest of the Pyrite Hill deposit.
Including mineralisation at the Big Hill Cobalt deposit (Inferred Resource of 4.4 million tonnes of 2.00 pounds per tonne cobalt) the combined Inferred Resources for the overall project now totals 20.8 million tonnes of 1.87 pound per tonne cobalt for 39 million pounds of contained cobalt metal.
BPL has recently completed an extensive IP geophysical survey across Pyrite Hill and the north east extension of the Big Hill mineralised trend.
The company said the results of this survey will be interpreted and that it anticipates it will define high-priority drill targets for new cobalt deposits as well as zinc and lead targets.
Work plans for the company over the coming months include further drilling to upgrade and increase the mineralisation at both Pyrite Hill and Big Hill and to drill test new anomalies generated by the geophysical survey.
“The new resource work has increased the project’s cobalt resources by seven million pounds of contained cobalt,” Broken Hill Prospecting managing director Dr Ian Pringle said in the company’s announcement to the Australian Securities Exchange.
“It has also shown the potential to double the size of the Pyrite Hill deposit with further infill drilling.
“This is a terrific step forward for our company as we progress towards growing a sizeable deposit to base a world-class mining operation.
“The mineralisation occurs close to surface and is an excellent kick start for feasibility studies for a future open cut mine capable of initial production throughput of four million to five million tonnes per year.”