Comet Resources Geared Up For FY20 With Robust Project Portfolio

The Perth-based explorer, Comet Resources Limited (ASX:CRL) has its undivided focus on the exploration of the battery commodities. Driven by the escalating popularity of the low carbon revolution, the company primarily runs exploration programs incorporating different exploration and mining activities.

CRL prominently focusses on advancing its wholly owned Springdale Graphite project, while eyeing the proposed Barraba Copper project.

Springdale Graphite Project Garnering Optimism

Comet Resources’ wholly owned project in southwest Western Australia - The Springdale project lies ~30 kilometres east of Hopetoun. The proximity to Esperance port (around 150 kilometres) provides the project access to excellent infrastructure, which includes grid power, piped gas and sealed roads. The clear ownership incorporating the 100% owned licenses and secured necessary approvals enhances the appeal of the project.

The project displayed notable success during the diamond drilling program which was undertaken for improving geological understanding, upgrading the high-grade component of the graphite resource and providing material for metallurgical testwork. The assays have demonstrated multiple broad zones of shallow, high-grade graphite results which include:

• 57m @ 22.38% Total Graphitic Carbon (TGC)
• 17m @ 16.55% TGC
• 10.9m @ 10.61% TGC
• 42.5m @ 17.02% TGC including highest grade 3.23m @ 51.02% TGC

Noteworthy Developments Concerning Springdale Project

Twelve pre-collared holes have been drilled for 1005.7 metres.

The Aerial Electromagnetic survey has identified high-grade and shallow graphite priority targets of 18 kilometres of strike length lying in close proximity to the resources.

The company received the funds of $480k during January 2020, post the government’s approval of application submitted for an R&D grant in December 2019.

Comet Resources completed the capital raising of $562,500 before costs for progressing Springdale project towards subsequent development stage.

The Proposed Barraba Copper Project

Located in North East of the New South Wales and lying proximate to the regional centre of Tamworth, the proposed acquisition of the Barraba project opens copper mineralisation opportunities for Comet Resources. The project area encompasses region’s key mineral control feature namely Peel Fault zone and incorporates volcanogenic massive sulphide mineralisation (VMS) deposit hosting Gulf Creek Copper Mine.

The company’s pre-transaction review of the proposed copper project underlined a number of exciting drill targets both along strike and at depth from Gulf Creek. Targets likely for VMS that are potentially rich in copper, precious metals and other base metals makes Barraba a highly prospective copper exploration project.

In relation to the Barraba Copper Project, the company has raised $2 million funding, providing a firm endorsement to the proposed project acquisition.

Demand-Supply permutation generating lucrative opportunities

BEV revolutionising copper demand- Spurred by the global drive for emission reduction, EV models are forecasted to increase from 179 at the end of 2018 to 230 by 2021, according to Bloomberg. Besides, BEV using four times as much copper as conventional internal combustion engine vehicles, copper is extensively used in batteries and motor windings of the electric motors that drive BEV’s wheels.

Copper intensive conventional power- As per Bernstein Research, solar and wind energy production consumes up to 37 times more copper than conventional power generation.

Impending Copper Shortage- S&P Global Market Intelligence forecasts copper supply deficit of 5.7 Mt p.a. by 2030 that would account for approximately 28% of the estimated demand.

Outlook FY20

Springdale project

• The initial results for the ongoing metallurgical testwork in Perth are expected in Q1/2 2020.
• Subsequent International testwork programs are supposed to commence in Germany during Q1 2020. The international testwork would utilise the samples produced in the Perth-based testwork for assessing the spectrum of off-take markets and analysing the value-add potential of Springdale’s high-grade graphite. Results of the international testwork are expected in Q2 2020.

Barraba Project

• The acquisition of the Barraba project acquisition is underway that requires completion of due diligence and satisfaction of conditions precedent.
• Initial drilling program planned for Q2 2020

On 18 March 2020 (3:12 PM AEDT), CRL stock traded at $0.015.