ASX-listed Cobalt Blue has completed a scoping study for its Halls Creek project in Western Australia, outlining a staged development plan aimed at delivering near-term copper and zinc production.

The project will target sequential development of the Onedin and Sandiego deposits. Ore from the Onedin deposit is slated for openpit mining, followed by processing via heap leaching, solvent extraction and electrowinning to produce copper metal. Zinc will be recovered through crystallisation as zinc sulphate monohydrate.

Material from the Sandiego deposit will be mined using underground methods and treated in a concentrator to yield separate copper and zinc concentrates.

A PV solar grid with battery storage is expected to provide on-site power, reducing the project's carbon footprint and improving energy resilience.

Cobalt Blue says the Halls Creek project offers several strategic advantages.

“The project provides exposure to major metals such as copper, zinc and silver,” the company said. “This diversification strengthens our ability to weather price swings, optimise capital allocation, and seize new opportunities in shifting market conditions.”

The study outlines a low up-front capital requirement and quick path to cash flow, complementing the company’s flagship focus on cobalt production. According to the company, the project’s conventional flowsheets and well-understood engineering reduce technical and operational risk.

“This is a fresh, modern look at an undeveloped project,” CEO Andrew Tong said in a statement. “We believe that the Halls Creek project can be developed for a moderate investment to profitably produce copper and zinc, which are forecast to be in high demand in the coming decade. While remaining focused on the Kwinana cobalt refinery, we are thrilled to have acquired a robust project to potentially deliver near-term value to our shareholders.”

Cobalt Blue plans to continue optimising the development plan, including opportunities to stage capital deployment and reduce equipment costs.