Conico, Barra's cobalt project to cost $212m

A joint venture between local junior explorers Conico and Barra Resources is positive on a released scoping study for its Mt Thirsty cobalt-nickel project near Norseman, which is expected to cost $212 million to develop.

The joint venture’s scoping study detailed a 1.5 million tonne per annum operation, and a 21-year mine life with annual production of up to 27,000 tonnes of cobalt and 35,000t of nickel.

The study also estimated life of mine operating costs of $43/t of ore treated.

The JV said processing infrastructure would include a crushing and grinding circuit followed by an atmospheric, low temperature, agitated leach circuit using sulphur dioxide gas as the active reagent to selectively leach cobalt and nickel from the enriched manganese horizons.

“The results of the study confirm the MTJV’s view that the Mt Thirsty project represents a long mine life, low capital and operating cost mining opportunity in a stable jurisdiction with excellent logistics,” the JV said.

Conico shares fell 41.8 per cent to 3.2 cents, while Barra shares fell 30.3 per cent to 4.6 cents each, at the close of trade.