The potential new venture utilising the so-called HPA First process is being promoted by Collerina as a winner on all fronts, including significant capex and opex reductions, and the opportunity to fast track into production and cashflow.

A prefeasibility study on the HPA First process is now due in October.

Collerina said the option of the future integration of a nickel-cobalt-scandium process is retained.

Unsurprisingly, it still believes the Collerina project still represents "a unique opportunity to produce nickel and cobalt under a compelling business case when compared to other nickel-cobalt laterite proponents".

Collerina Cobalt's board include Norm Seckold and Peter Nightingale, with the two involved in managing multiple resources companies in the listed space over the past 20-30 years.

The breakthrough HPA discovery comes perfectly timed for Collerina given the junior is estimated to currently have less than A$500,000 cash.

Shares in Collerina last traded last week at 11c, capitalising the company at $56 million.

The stock is up from levels around 3c 12 months ago, while a $3.5 million raising late last year priced new shares at 5.5c each.