Guess we missed another report date , quarter over
an Cobalt Concentrate Product:
In response to changing battery market dynamics, market feedback, and in-
depth discussions with potential off-takers since the releas
e of the FS, there is an opportunity to reduce capital and
operating costs at the Cobalt Production Facility (“CPF”) and
improve construction timelines by pursuing a clean
cobalt concentrate product and by-pr
oduct of copper/gold concentrate. Clean
cobalt concentrate is an upstream
product containing less than 1% arsenic that is used in
the production of precursor battery cathode material. Since it
is a less refined product compared to cobalt sulphate, capital expenditures related to the CPF may be reduced. The
Company has received Letters of Intent for off-take and project financing from multiple parties on this new strategy
and intends to identify its partner(s) in early 2018 after thorough evaluation of the proposals.
The total capital cost estimate for the ICP per the FS
is US$187M, of which US$1
24M (66%) is for the CPF.
Operating cash cost for the ICP, net of by-product credits,
is US$5.05/lb cobalt, of which US$13.88 is direct cost
before by-product credits and 34% of direct
cost is related to the CPF. The Company believes that a more simplified
flowsheet to produce a clean cobalt concentrate product may reduce both capital and operating costs which is
expected to have a positive impact on overall project economics. The Company has engaged Micon International
Ltd. (“Micon”), SNC Lavalin Inc. (“SNC”) and Dundee
Sustainable Technologies (“DST”) to conduct deta
iled
metallurgical testing and engineering for the revised flowsheet with the intent to develop feasibility level designs and
costs. Initial testing has demonstrated that arsenic re
moval from ICP ore concentrates by conventional roasting
methods was successful. Pilot scale testing is currently
underway with results expected by the end of the first
quarter of 2018 to confirm assumptions used in the new FS flowsheet.
This report was filed on sedar on March 27 at 18:05:42 MD&A English 364 k