“Following the China trip to review the PFS, HAV announced Kalkaroo's maiden Cobalt JORC resource of 23.2kt. Negotiations over this resource may be contributing to the delay”
We know the Kalkaroo cobaltian pyrite is associated with chalcocite and chalcopyrite mineralisation in the Kalkaroo ore body.
We also know that previous studies indicated there is a sound basis for determining reasonable prospects for eventual economic extraction of the Kalkaroo copper-gold mineralisation and cobaltian pyrite ore.
However, the metallurgical recovery process is not yet defined for cobalt contained in cobaltian pyrite ore.
For that reason, 23,200 tonnesof cobalt currently sits in the Inferred JORC resource category at Kalkaroo.
The primary focus of the Kalkaroo PFS, so far, has been the Measured and Indicated JORC resource components for the purposes of estimating an Ore Reserve.
Havilah Management presumably must now prove to Wanbao the Inferred JORC resource for cobalt can be upgraded to the Measured and Indicated JORC resource.
If cobalt can be included in the Kalkaroo PFS, it will add to the valuation and ultimately influence the NPV.
For me, this again highlights the importance of the metallurgical test work HAV is currently pursuing, including with Cobalt Blue Holdings (due by the end of this month), regarding recovery of cobalt from cobaltian pyrite ore.
At the current spot price of US$91,000/tonne (FX spot 0.7683) this 23,200 tonnes of cobalt at Kalkaroo equates to an In-situ Value (‘ISV’) of $2.7 billion. Or $138 million at 5% of ISV.
IMO, worth the delay if HAV can capture this ‘potentially attractive upside’ at Kalkaroo.
HAV fanboy: still drinking the Kool-Aid
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.
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