Background

Broken Hill is situated in far western New South Wales, Australia and is the largest high-grade base metal deposit in the world. It was discovered in 1883 and has been mined almost continuously since. The Broken Hill is the largest known accumulation of lead zinc and silver known on earth. The six mined lodes are estimated to have contained 280 million tonnes of ore with grades ranging between 2.5-15% lead, 20-300g/t silver and 5-20% zinc (NSW Government).

BPL has been actively exploring the Broken Hill region since 1986. During this time, the Company and its shareholders have acquired significant knowledge of the Broken Hill area.

BPL’s exploration is now centered at the Thackaringa project (an area situated approximately 25 km south west of Broken Hill) where BPL holds 100% of two exploration licenses (EL6622, EL8143) and two mining leases (ML86 and ML87).

The Company’s geologists and consultants are exploring several large, low-grade and near-surface cobalt deposits. BPL is focused on assessing these deposits for large open cut mining, and cobaltiferous pyrite concentrate production/processing to produce cobalt, sulphuric acid for industrial application, feldspar-quartz for ceramics and a high iron residue for iron smelters.

Because of the excellent location of the deposits beside main railway and road networks and within a half hour drive from the mining centre of Broken Hill, BPL is confident of successful project development. This will be assisted by a growing industrial demand for cobalt which is mostly produced as by-product of copper mining from deposits in central Africa as well as a future need for sulphuric acid to supply a growing local market.

Resources

The Company has defined resources at the Pyrite Hill, Railway and Big Hill Cobalt deposits which have combined Inferred Resources of 35.7 million tonnes of 1.85 pounds per tonne cobalt (0.084% Co) with additional Potential for an additional 37-59 million tonnes of between 0.0775-0.084% Co which combined equates to between 58,600 – 79,500 tonnes of contained cobalt metal.Several kilometres of outcropping cobalt-pyrite rock have yet to be tested by drilling.

Scoping studies show that the cobalt-pyrite rock can be upgraded to a concentrate with between 0.4% and 0.5% cobalt grade and this can be recovered by pyrite roast to produce sulphuric acid and a cobalt-hematite ash from which cobalt can be extracted by electro-winning.