Finland's KSB Project: A Game-Changing Gold-Cobalt Operation
Finland's KSB Project has emerged as one of Europe's most promising gold-cobalt developments, with Latitude 66 Ltd (ASX: LAT) unveiling robust economics in their recently completed Scoping Study. The study confirms the project's potential as a highly profitable, low-cost operation capable of producing significant amounts of both gold and cobalt – a critical mineral essential for Europe's growing battery and defence industries.
Exceptional Economics Powered by Gold with Strategic Cobalt Upside
The Scoping Study demonstrates impressive financial metrics that position KSB as a highly attractive investment opportunity:
• Post-tax NPV8 of US$310 million (US$433 million at current spot gold prices)
• Strong IRR of 74% (98% at spot pricing)
• Quick payback period of just 16 months (12 months at spot)
• Low initial capital requirement of US$101 million
• All-in sustaining costs (AISC) of US$1,038 per gold ounce
What makes KSB particularly compelling is its dual-metal production profile. Over its 7.2-year mine life, the project is expected to produce approximately 65,000 ounces of gold and 465 tonnes of cobalt annually.
This positions the KSB Project to generate substantial cash flows from gold while simultaneously becoming a strategic supplier of cobalt – a mineral designated as critical by both the EU and NATO.
High Confidence Resource with Minimal Risk
The KSB Project benefits from a high degree of certainty in its resource base. The production target comprises 90% Indicated and only 10% Inferred Mineral Resources over the life of mine.
Even more importantly, during the project's 16-month payback period, approximately 97% of production comes from the higher-confidence Indicated category.
This high level of geological confidence significantly de-risks the project and provides investors with greater certainty around the production forecasts.
How Significant is the Expansion Potential?
While the current mine plan is based on the existing 7.2Mt resource (containing 650,000oz gold and 5,840t cobalt), significant exploration upside exists to potentially extend the operation's life and increase annual production rates.
Latitude has identified several near-mine extensional targets through detailed geophysical surveys, with electromagnetic conductors detected both down-dip and along strike of the K1 deposit.
Additional high-priority targets at the K6E and K6W prospects, located just 1km from the K2 deposit, have already demonstrated impressive surface sampling results:
• K6E boulder samples: up to 490 g/t gold and 0.09% cobalt
• K6W boulder samples: up to 8.8 g/t gold and 0.6% copper
Furthermore, the Scoping Study considered potential processing plant expansions, with preliminary estimates suggesting an increase to a 1Mtpa processing facility would cost approximately US$13 million in additional capital – a relatively modest investment that could significantly boost production.
The Strategic Importance of Cobalt in Europe
Cobalt has become one of the most strategically important minerals for Europe's industrial future. As a key component in batteries, aerospace applications, and defence technologies, securing reliable cobalt supplies has become a priority for EU policymakers.
What makes the KSB Project particularly significant is its potential role in European cobalt security. The annual cobalt production from KSB could potentially account for approximately 25% of all cobalt extracted within the EU, making it a crucial asset for the continent's raw material independence.
The EU's Critical Raw Materials Act (CRMA) specifically identifies cobalt as a strategic mineral, and with most global production currently dominated by the Democratic Republic of Congo and refined in China, European-sourced cobalt carries significant strategic value.
Recent export restrictions from the DRC have highlighted the vulnerability of global cobalt supply chains. With the DRC accounting for over 75% of global cobalt production, even temporary export restrictions can cause significant market disruptions – as evidenced by recent price increases following a March 2025 export ban.
Infrastructure and Processing Advantages
The KSB Project benefits from a straightforward development approach and excellent existing infrastructure:
• Conventional open-pit mining across three deposits (K1, K2, and K3)
• Standard processing route using gravity, Carbon in Leach (CIL) and flotation
• Favourable metallurgy with gold recoveries of 92.5% and cobalt recoveries of 70%
• Grid power access with connection to Finland's 94% non-fossil fuel power grid
Additionally, established road networks connect the mine site to the processing plant location, and there's proximity to skilled labour in the nearby town of Kuusamo (population 14,800).
The project's location in Finland provides significant advantages in terms of permitting stability, infrastructure, and labour quality. Finland consistently ranks among the world's top mining jurisdictions for investment attractiveness due to its transparent permitting processes and support for responsible mining development.
Why Investors Should Take Notice of Latitude 66
The KSB Project represents a compelling investment opportunity in the critical minerals space for several key reasons:
1. Gold production underpins economics: Unlike many critical mineral projects that struggle with profitability, KSB's gold production provides robust cash flows regardless of cobalt price movements.
2. Strategic EU asset: As Europe seeks to secure domestic supplies of critical minerals, KSB stands to benefit from potential policy support and strategic partnerships.
3. Expansion potential: The identified exploration targets suggest significant potential to grow resources and extend mine life beyond the initial plan.
4. ESG advantages: Finland's stringent environmental standards and the project's connection to the country's largely renewable power grid position KSB as a potentially low-carbon supplier of critical minerals.
5. Experienced management: Latitude 66's team brings significant mining development expertise to guide the project through studies toward production.
With upcoming activities focused on resource expansion drilling and advancing toward a Pre-Feasibility Study, Latitude 66 is well-positioned to deliver significant value as the KSB Project progresses through development stages.
In conclusion, given the current market interest in both gold and critical minerals, KSB represents a unique opportunity at the intersection of these high-demand sectors, making it one of the most promising mining developments in the European Union.
Looking to Invest in Europe's Gold-Cobalt Future?
Discover why Latitude 66's KSB Project is positioning itself as a strategic European gold and cobalt producer with exceptional economics, minimal risk, and significant expansion potential. For more information about this compelling investment opportunity in Finland's critical minerals sector and to stay updated on Latitude 66's development progress, visit Lat66.com today.
