Comet Resources Welcomes Cascading Hopes In 1H20 As Exploration Program Moves Forward

The half-yearly update for the period ending 31 December 2019 released by the Perth-based explorer Comet Resources Limited (ASX:CRL) highlights the gushing aspirations concerning its operational activities in the mineral exploration agenda. While the company’s endeavours were centred at enhancing the resource estimate at its flagship Springdale Graphite Project, it also made a market-driven move towards the acquisition of the Barraba Project.

Diamond Drilling Program Assays: Multiple Broad Zones Of Shallow, High-Grade Graphite At Springdale

The Springdale project, backed by a robust infrastructure that incorporates sealed roads, piped gas, grid power, has a strategic locational advantage as it is situated 150 kilometres west of Esperance Port.

The exploration success over the project can be attributed to the high-grade drilling results that the company acknowledged in the six months. The drilling highlights during the December quarter include:

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

Appointment of Matthew O’Kane as Managing Director

Matthew O’Kane, an experienced mineral industry executive, was appointed as the managing director of the company on 12 November 2019. With 25 years of experience in the mining, automotive and commodities sector in USA and Asia, Mr O’Kane has diverse experience working from startup companies through to MNC’s in both emerging and developed markets. His career association with the companies involved in exploration, development as well as production would provide a positive impetus to project portfolio of Comet Resources.

Aerial Electromagnetic (EM) Survey Completed

The previous quarter was marked by the successful EM program that was conducted by the highly experienced specialist teams. EM survey highlighted numerous priority graphite targets in 18 kilometres of strike length lying in proximity to the company.

By targeting the near-surface and high-grade graphite, the electromagnetic survey would aid in the optimisation of operational efficiency by delineating graphite-bearing stratigraphy

Metallurgical Test Works Underway

Following the successful diamond drilling programs, the metallurgical test works are underway in Perth that would characterise the graphite and establish recoveries in relation to the Springdale project. Results for the test works are expected in March 2020 quarter.

The subsequent international test work is planned with a specialist graphite company in Germany for assessing the spectrum of off-take markets and evaluating the value-add potential of high-grade graphite at Springdale. While the test work in Germany would commence in Q1 2020, the results for the international metallurgical test work is expected in Q2 2020.

R&D Grants and Capital Raising

The company received the R&D grant payment of $480k in January 2020, post its R&D Grant funding submission to the Australian Government in December 2019.

It was also successful in completing the capital raise of $562,000 before costs via private placement. The funding was intended to support the advancement of the Springdale Project towards its next development stage.

Proposed Acquisition of Barraba Copper Project

Comet Resources proposed the acquisition of the Barraba Project in New South Wales in January that is situated in the area of the historic Gulf Creek Mines that hosted VMS style deposits. The initial drilling plan is anticipated during Q2 2020.

Concerning the Barraba Project, the company has received firm commitments for $2M that would provide a strong endorsement to the copper project acquisition.

The project is based on the growing demand for the battery commodities playing a vital role in supporting the de-carbonisation of the global transport network. As the market demand for copper is growing due to its increasing use in BEVs, SS&P Global Market Intelligence forecasts the copper supply deficit of 5.7 Mt per annum by 2030 representing 28% of the estimated demand.

In order to seek the approval of shareholder for acquiring Barraba project and its capital raising, Comet Resources has dispatched Notice of General Meeting which is to be held on 3 April 2020.

Financial Update

The recent half-yearly report highlights that the consolidated entity witnessed the net loss of $1,259,771 for the six months to 31 December 2019, with $900,589 exploration expenditure. The cash balance at the end of the half year stood at $427,231.

Comets seems to be holding considerable potential catering to the rapidly growing global demand for battery commodities, backed by robust project portfolio, attractive market opportunity and experienced management.

On 13 March 2020, CRL stock settled day’s trading at $0.014.

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