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g/t PGE from 140.6m; 11.9m @ 1.35% nickel, 0.15% copper, 0.02% King Cobra is the latest near surface, nickel sulphide
cobalt and 1.09 g/t PGE from 107m; 33.3m @ 0.8% nickel, 0.09%
copper, 0.01% cobalt and 0.36 g/t PGE from 138m. zone bearing semi-massive sulphide veins (SMSV)
announced by Blackstone.
The focus of previous mining activity had been on a narrow
2m-wide massive sulphide vein at Ban Phuc and while there are Assays were pending at the time of print, with near
potentially a further 25 deposits of similar nature, Blackstone’s surface down-hole intervals of up to 60m and visual
priority is defining a large-scale, bulk tonnage, lower grade estimates of up to 20%.
disseminated resource conducive to open pit or bulk underground The King Cobra discovery includes the first-ever
mining. intersection of massive sulphide vein and breccia
Impressed with drilling outcomes so far on the nickel content, styles of sulphide mineralisation within the Ban Phuc
further excitement is building within the Blackstone camp on the intrusion, which may provide vectors towards the
back of platinum-palladium-gold credits evident at Ban Phuc. high-grade feeder zone mineralisation.
Spurred by demand for usage in catalytic converters, palladium The latest assays available at the time of print from
prices started to surge in October.
Ban Phuc received during the period from the Ban
Continued strength in PGE pricing would be a sweetener for
Phuc DSS drilling programme, included the broadest
Blackstone at Ban Phuc if enough material proves to be economic.
downhole intersections of nickel mineralisation seen
“Nickel will deliver 80-90% of the project revenue and the nickel to date: 106m @ 0.45% nickel and 51m @ 0.73%, with
numbers are strong enough without those credits. However, if they higher grade zones of 15.6m @ 1.08% and 18.1m @
are economic, the mining and processing costs could be covered 1.37%.
by the PGEs,” Williamson said.
All nickel intersections are associated with copper,
“We think that has a lot of potential to be monetised over a lot of
the operating costs. For an open pit mining scenario, we’re looking cobalt and significant platinum, palladium and gold,
at 0.7-1 g/t platinum plus palladium plus gold credits.” that combined have returned assays of up to 51 m @
0.44 g/t platinum-palladium-gold, including 18.1m @
Historic comparisons between total site operating costs at Ban
Phuc versus a similar mine operating in a western destination 1.01 g/t platinum-palladium-gold.
indicated costs in Vietnam were 25% lower at all-in costs of Meanwhile, Ecopro BM Co Ltd – South Korea’s largest
$US136/t for narrow vein underground mining, including tariffs EV battery cathode manufacturer – has entered a
and royalties. The 20% Vietnam Government tariff on concentrates non-binding MoU with Blackstone, in a potential
is perhaps one reason why companies have abstained from partnership to develop a downstream processing
involvement in the project. But, with almost $US140 million having facility in association with Ta Khoa.
been spent on infrastructure at Ban Phuc, including a 450,000 tpa
plant, Blackstone has a head start. Additionally, the company’s
masterplan for Ta Khoa is to eventually circumvent the concentrate
tariff by taking processing further downstream and delivering a Vietnam is regarded as one of the fastest growing markets in
product suitable for the lithium-ion battery industry.
Asia and the fundamentals of investing in the country are well
Potential capex to bring the downstream dream alive would be understood by generalist funds.
about $US100 million, manageable for a junior, but even more Blackstone is revelling in low labour and power costs and an
realistic with a partner.
investor-friendly approach from government, while access to a
A pressure oxidation (Pox) processing option, similar to the flow skilled workforce and diamond drilling for $80/m compared to
sheet IGO Ltd is assessing for nickel sulphate production, is the $500/m in Canada is providing Williamson with some relief in what
model Blackstone would look to replicate at Ban Phuc. has been another challenging year for the junior mining fraternity.
In line with resource/reserve drilling as well as testing geophysical “We get these 3-6 months windows where it looks like a bull
targets for new discoveries at Ban Phuc, a scoping study on market, but then we get smashed back down again. We knew
downstream options is also in the pipeline for the next six months. that supply was going to get tight and the Indonesian ban coming
“We could potentially be one of the first companies delivering quicker than expected has certainly been very helpful,” Williamson
nickel sulphate to the industry and will look to a JV scenario said.
through the downstream side of the business, while retaining full “We hope that the last little fall in nickel stockpiles is real, there is
exposure at mine level,” Williamson said. speculation that it has been manipulated. We do know there is a
“We’ve only had the asset for six months and we’ve already hosted very strong underlying demand and that over the medium to long-
end-users to site, so clearly we have what they need and they will term there is not going to be enough nickel to supply the battery
be looking for us to drill this out.” industry.”
The growing demand for nickel sulphate has encouraged sulphide A nickel price in the vicinity of $US17,000/t would be something
miners to research and develop new technologies and flow sheet that makes Ban Phuc very profitable for Blackstone, however,
to meet the tight specifications of battery manufacturers. Several Williamson has more on his plate than to be watching daily price
companies are already collaborating on research and Williamson is fluctuations.
happy for Blackstone to participate. “When LME stockpiles have gone low like this before, we saw
As industry embraces cooperation in developing an emerging significant prices spikes and in 12 months’ time there might not
segment of the market, there are few companies on the doorstep even be a stockpile, which isn’t necessarily good as you won’t be
of China, Japan and Korea in a position to offer nickel sulphate like able to track where the nickel is going,” he said.
Blackstone is planning. “Our five-year view is that nickel will be at these levels or much
“We didn’t go looking at Asia, but once we realised how well- higher and being in nickel sulphide we make money as low as
suited this particular destination is to the battery market and $US14,000-15,000/t. If anything, we don’t want the price to run too
end-users in Asia, which are looking at securing 10-20 years of fast because that then brings laterites into their own. We’d be
supply, and the strength of this particular orebody, we went all in,” happy with a price anywhere between here and $US20,000/t.”
Williamson said.