Cobalt Project To Be Advanced At Santo Domingo To Feasibility

VANCOUVER - Capstone Mining Corp. reported that it intends to advance the Cobalt Project at Santo Domingo in Region III, Chile, to Feasibility as described in the Santo Domingo Project, Region III, Chile NI 43-101 Technical Report and Preliminary Economic Assessment1 (PEA). The production of battery-grade cobalt sulphate at Santo Domingo is expected to significantly add to the robust copper-iron-gold project and maximizes the recovery of future facing metals from this rich resource.

Darren Pylot, President and CEO, said, “Capstone has an incredible opportunity to produce ethically-sourced battery-grade cobalt sulphate from Santo Domingo’s future copper-iron tailings stream. The process is a series of conventional steps, with below zero costs given significant by-product credits.”

“The potential of cobalt production in Chile has been under appreciated for decades while copper and, recently, lithium have been the main focus of investment. Although this market is small, projections for demand growth suggest that it could triple in size by 2030 mainly due to the development of electromobility. As the chemical properties of cobalt extends the life of rechargeable lithium batteries used in electric vehicles, we are seeing a significant boost to exploration and extraction activity. Capstone’s plans for a cobalt feasibility study at Santo Domingo could represent a great step forward and an example of Chile’s potential to become an important world producer.” said Edgar Blanco, Chile’s mining ministry undersecretary.

The Santo Domingo Advantage in the Global Cobalt Supply Landscape: Downstream cobalt users are actively seeking ethical supply to meet future demand needs and Chile is one of the best mining jurisdictions in the world; In 2020, an estimated 71% of the 133,000 tonnes of cobalt produced globally originated from the Democratic Republic of Congo (DRC) and the majority of this was shipped to China, the leading importer of mined cobalt and exporter of refined cobalt; Global cobalt sulphate production in 2020 is estimated at 43,000 tonnes of cobalt contained. Of this, greater than 85% was produced in China and greater than 90% originated from DRC intermediates; By 2025, an estimated 140,000 tonnes of cobalt contained in cobalt sulphate will be required for lithium-ion (Li-ion) batteries; Cobalt contained in sulphate currently sells at a premium over the cobalt metal benchmark price; The bulk of global cobalt sulphate production is dependent on refining third-party feedstock imported from other countries. The majority of cobalt sulphate producers are currently processing feed that is priced at around 93-94% of the cobalt metal benchmark price; Santo Domingo’s PEA estimated costs of -$4 per pound (net of by-products in cobalt operation) positions it to be a unique, fully integrated producer of battery-grade cobalt sulphate; Santo Domingo will be the only cobalt sulphate project in the Americas not dependent on third-party DRC feed; and Santo Domingo’s cobalt processing capacity could supply enough battery-grade material for more than 500,000 electric vehicles (EV’s) annually.

Pylot added, “A cobalt operation at Santo Domingo would unlock Chile’s vast potential for this critical metal and it is exciting that Capstone is leading this vision. The selection of a strategic partner due later this year, will accelerate this unique project to recover a future-facing, green metal from a waste stream, a plan that I’m set on making a reality.”