Cobalt Blue will investigate the potential to produce marketable cobalt from the Rocklands copper operation in north-west Queensland.
Rocklands owner CuDeco and Cobalt Blue today announced a memorandum of understanding which will see Cobalt Blue explore opportunities to monetise the cobalt-pyrite concentrate produced from the flotation circuit at the Cloncurry mine.
It will take a sample for testing using the proprietary technology it has developed.
Cobalt Blue is an exploration company focused on developing the Thackeringa cobalt project in New South Wales, which is subject to a bankable feasibility study.
CuDeco recently suspended mining and processing at its Rocklands copper operation, bringing forward a planned maintenance shutdown including a process plant ball mill reline.
At the time, the company said it would also undertake a number of business improvement projects and financial assurances during the period of suspended operations.
It released a statement this week indicating that there would be a further period of suspension beyond the original end date of September 10.
CuDeco chairman Peter Hutchison said while the extension impacted short-term production targets, it was crucial towards facilitating a comprehensive reset of the operation and refinement of the business model.
“We will seek to ensure he operational suspension is as short as possible and will provide further updates on the progress of our funding and operational enhancement initiatives,” he said
“CuDeco’s board and management remain focused on ensuring a successful operation at Rocklands, delivering value to shareholders and economic benefits for the local community.”