Broken Hill Prospecting Ltd (ASX:BPL) has raised an additional $746,000 through a share purchase plan (SPP) to advance the Thackaringa Cobalt Project near Broken Hill.

The SPP offered shareholders the opportunity to purchase additional stock priced at $0.081 and closed 12 August, 2016.

The SPP followed the recently completed placement which raised $992,000.

Cobalt is a necessary metal for the production of the latest generation, high density lithium-ion batteries.

Due to its high run-time properties, the use of cobalt has risen dramatically as portable lithium-ion battery usage accelerates and electric vehicles become a reality.

Trangie Johnston, CEO, commented: 'The strong support of BPL shareholders for the SPP allows us to accelerate the Thackaringa Cobalt Project near Broken Hill, NSW, with drilling programs planned to commence next month.

'This will help us plan development options for this world scale resource at a time when demand for cobalt is strengthening.”


Thackaringa Cobalt Project

The Thackaringa Cobalt Project is strategically located 25 kilometres south-west of Broken Hill within New South Wales, adjacent to the main transcontinental railway line.

Since commencing its assessment in 2011, BPL";s exploration activities have more than doubled the resource to 35.7 million tonnes at 1.85 pounds per tonne cobalt.

The cobalt deposit at Thackaringa is contained in a pyritic rock, which adds the possibility for the co-production of sulphuric acid from any future mining activities.

Sulphuric acid supply in Australia for mining and agricultural purposes is limited and significant quantities are imported.

The large, near-surface deposits at Thackaringa also make the project suitable for large-scale, open cut mining methods.


Use of funds

Funds raised under the SPP will be used to advance Thackaringa by:

- undertaking drilling programs in respect of its mineral resources;
- undertaking metallurgical testing programs;
- supporting marketing studies on cobalt and sulphuric acid production;
- undertaking economic studies and developing a variety of business models to explore the
processing options for the ore; and
- providing the company with working capital.


Thackaringa is unique

BPL";s Thackaringa Project offers a rare and unique primary source of cobalt located in Australia.

94% of the world";s cobalt production is a by-product of copper and nickel mining.

92,000 tonnes of cobalt was produced in 2015 and 80% of that is consumed by the U.S, Japan, China and Europe.

The Democratic Republic of Congo hosts 50% of the world";s known cobalt resources and provides 60% of the world";s production.


Advanced mineral sands projects

BPL has been progressing two of their five high grade titanium-zirconium deposits being the Copi North and Magic Heavy Mineral Sands deposits with their 50/50 partners Relentless Resources.

These deposits are located south of Broken Hill in western NSW have been extensively explored and drill tested by other parties in the past.

Project economics for the development of Copi North are already compelling considering the resource is shallow and nearly twice the head grade of operating nearby mines.

A scoping study was completed in mid February, 2016 for mine development of the Copi North.

Recent extensional drilling saw tonnages increase to 14.2 million tonnes at 6.6% HM and the Indicated category rise from hosting 60% to 77% of the Mineral Resource.

The Copi North HMS deposit remains open to the northwest and an exploration target has been defined for 2 kilometres along strike from the new resource estimate.

The exploration target stands at 0.5 to 1.0 million tonnes grading 2-5% total heavy minerals.

The resource extension is significantly closer to surface than the main Copi North deposit.

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