Blackstone Minerals' March 2021 quarter ‘transformative’ with plans to expand downstream refinery capacity

Blackstone Minerals Ltd's (ASX:BSX) (OTCMKTS:BLSTF) (FRA:B9S) March 2021 quarter was "transformative" as it continued with its aggressive drilling program and expressed confidence that its Ta Khoa Nickel-Copper-PGE project will feed a significant downstream refinery in Vietnam. The company, which outlined its plans to expand its downstream refinery capacity to the market in the quarter, said that executing on the planned strategy will turn the company into a globally significant Class-1 nickel producer. Formalisation of Blackstone’s relationship with one of the largest commodity traders in the world - Trafigura - was also an important milestone for the quarter. Downstream refinery PFS  Blackstone Minerals managing director Scott Williamson, in highlighting the ‘transformative’ quarter, said: “During the March 2021 quarter, the company continued an aggressive drilling program, adding confidence to the existing resource base, as well as successfully targeting new massive sulfide opportunities including the King Snake prospect. "The Ta Khoa district remains largely untested and we are confident, based on our existing resource, initial success at multiple MSV (massive sulfide vein) deposits and from future exploration success, that the Ta Khoa Nickel –Copper-PGE project will be a significant feedstock for our downstream refinery in Vietnam for many years to come. “The ability for our downstream business to access third-party concentrate will be important to meet the burgeoning demand for nickel driven by rapid growth in the lithium-ion battery industry.” During the quarter, Blackstone continued to collaborate with Trafigura and Williamson said he looks forward to presenting outcomes of the pre-feasibility study (PFS) for its downstream refinery business in June or July this year. The upstream PFS is being targeted for delivery in the third or fourth quarter. Ta Khoa Project The company owns a 90% interest in the Ta Khoa Nickel-Copper-PGE Project. The Ta Khoa Project is 160 kilometres west of Hanoi in the Son La Province of Vietnam and includes an existing modern nickel mine built to Australian standards, and currently under care and maintenance. Its Ban Phuc nickel mine successfully operated as a mechanised underground nickel mine from 2013 to 2016 and in October 2020, Blackstone completed a scoping study, which investigated mining the Ban Phuc Disseminated nickel sulphide ore body and the construction of one downstream refinery. The Ta Khoa Project is now advancing through two separate PFS studies for the upstream business unit (UBU) and downstream business unit (DBU). This DBU PFS will consider expanded downstream refinery capacity, for which feedstock will be met from the Ta Khoa Nickel–Copper–PGE mine, as well as third party concentrate and the UBU PFS will contemplate the option to mine several higher grade MSV deposits.   By combining Blackstone’s existing mineral inventory (Ban Phuc DSS), exploration potential presented by high priority targets such as Ban Chang and King Snake, and the ability to source third party concentrate, the company will be able to increase the scale of its downstream business to meet the rising demand for downstream nickel products. Aggressive drilling program at King Snake On May 13, 2021, results from further drilling results, which returned ‘excellent’ assays targeting resource extensions at King Snake, confirmed its potential to add to Blackstone’s MSV mining inventory and supports the re-start of the existing 450,000 tonnes per annum (tpa) concentrator. Together with historic drill results, the new results defined a strike length of over 800 metres at King Snake, which includes MSV, semi-massive sulphide vein (SMSV) and disseminated sulphide. Drilling at King Snake is focusing on new electro-magnetic (EM) targets, which extend down plunge to the west of historic drilling. Initial assay results from current reporting and visual inspection suggest greater thickness of sulphide mineralisation down plunge of historic drilling. Ban Phuc disseminated sulphide deposit At the Ban Phuc DSS open pit deposit, Blackstone continued with infill drilling to upgrade the confidence of the current resource estimate, including the targeting of inferred mineralisation. A total of 5,286 metres were drilled at Ban Phuc during the March quarter and assay results received will be incorporated into a resource update expected as part of the UBU PFS in the third/fourth quarter. Bang Chang (MSV) The company’s most advanced MSV target is the Ban Chang Prospect. Drilling during the quarter was primarily infill to support ongoing resource estimation work and mining studies. The drilling program has identified multiple massive sulphide lenses, which are often associated with broader disseminated sulphide zones. This style of mineralisation potentially lends itself to a mechanised underground mining scenario. IPO opened for spin-off Codrus Minerals  Recently on May 15, the company opened its priority offer to shareholders for the IPO of spin-off Codrus Minerals, following the conclusion of the exposure period. Eligible Blackstone shareholders at the record date of May 6 resident in Australia or New Zealand are entitled to subscribe for up to 500,000 CDR shares in the IPO under the priority offer.   The BSX offer is being made under the prospectus, which CDR lodged with ASIC on May 5 to raise a minimum of $5 million.