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Celsius Resources continues to trade at lower level as the new guidelines of Australian Securities Exchange currently prevents the mineral explorer to release production targets or financial outlook based on the scoping study completed for a cobalt project in Namibia.Â
Last week the company released positive results of the scoping study conducted on âOpuwoâ cobalt project. Although the scoping study confirmed a potential for large and long-life operations at Opuwo in Namibia, Celsiusâ share price nosedived as much as 40 per cent. Further, the company faced number of shareholder enquiries regarding the next steps for the project, and the schedule for reporting production targets and financial metrics, including revenue and projected cost, generated from the Study.
In response to investors queries and recent meltdown in CLAâs share price, Celsius aims to update its scoping study and provide detailed information on production targets and high-level financial metrics to the market in late Q1 2019. But the publication of these information remains subject to Celsius Board and ASX approval.
âInitial PFS study work to focus on components which are expected to allow an updated Scoping Study to be released in approximately March 2019â, told Celsius Resources Limited.
Further, it has been informed that updated mineral resource is expected by December 2018, whereas the Pre-Feasibility Study (PFS) for the project is scheduled for completion in the end of third quarter of 2019.
The results of positive scoping study revealed that there are no significant deleterious elements such as uranium or arsenic at Opuwo. Moreover, the company successfully produced the sulphide concentrate through standard flotation methods and is currently examining various open pits and underground mining scenarios following the completion of preliminary mine planning. The management further advised that additional metallurgical test work to be completed on the near surface oxide mineralisation from the Opuwo Mineral Resource.
Celsius told flowsheets and costing developed, cobalt sulphate, cobalt hydroxide or cobalt metal to be produced, along with copper metal and zinc sulphate. Whereas, moderate temperature and pressure autoclave process are under development that would be further evaluated during PFS along with the traditional sulphating roast/atmospheric water leach process.
Benchmark Mineral Intelligence forecasts that the use of cobalt in batteries will more than triple between 2017 and 2026, despite the shift to lower cobalt batteries during this timeframe. As per the companyâs information, Celsius Resources has already started high-level discussions with prospective offtake partners.
Adding to the recent collapse, Celsiusâ stock has fallen more than 6% in early trade today. However, it concluded the session at a share price of $0.059 after dropping 3.279% on 13 November 2018. Over the past one year, the stock of Celsius Resources Limited (ASX:CLA)Â has witnessed a negative performance of 29.07% which is getting worst since last three months with -46.96%.
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