ASX listed resources Company, Celsius Resources Limited’s (ASX: CLA) stock tumbled 2.632 percent on 7 January 2019 after providing an update on ongoing resource development drilling at its 95 percent owned Opuwo Cobalt Project in Namibia.
As per the announcement, the latest resource development drilling has confirmed a potentially highly significant extension to the existing Mineral Resource and Exploration Target zones, dubbed the “DOF Northwest Anticline” Target. The target zone is exhibiting positive characteristics in terms of thickness and geometry of the mineralization which is allowing the Company to consider alternative mining techniques as part of the ongoing Project studies.
As per the company’s Managing Director (MD) Mr. Brendan Borg, the company is excited by the potential for DOF Northwest Anticline zone at Opuwo project which is allowing consideration of alternative mining techniques and mine plans for extraction of the mineralization.
Earlier, the mineral resource estimate at the Opuwo project was representing contained cobalt of 126,100 tonnes, and it was having Indicated resource of 72.0 Mt at 0.11 percent Cobalt, 0.42% Copper and 0.41 percent Zinc and Infrared resourced of 40.5 Mt at 0.12 percent Cobalt, 0.41% Copper and 0.46% Zinc.
Few of the most significant intersections from the latest batches of assays include-
- 6.3 m @ 0.19 percent Cobalt and 0.35% Copper, from 226.70 m, including 4.03 m @ 0.24% Cobalt and 0.37% Copper, from 227.87 m (DOFD0262).
- 7.21 m @ 0.12% Cobalt, 0.41% Copper and 0.63% Zinc from 629.00 m (DOFD0253).
- 5.52 m @ 0.15% Cobalt, 0.47% Copper and 0.64% Zinc from 684.00 m (DOFD0265).
The company’s 95% owned Opuwo Cobalt Project is having a total project area of 1,470 square kilometers with ~10km strike of existing resource zone. The large scale and Favourable mineralogy at the Opuwo Cobalt Project are very advantageous for the company. Further, the project is mining friendly, politically stable and is located in a safe location with excellent infrastructure which adds value to the overall Project.
The company is mainly involved in the exploration of cobalt and as per the company’s market outlook, the Cobalt-containing cathode will dominate Electric Vehicles and Storage applications within ten years. It is estimated 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.
The company’s external consultants, DMT Kai Batla is progressing with the Resource modelling and estimation at the Project. It is expected that further results from the new discovery area are going to be included in the updated Mineral Resource which will be released before the updated Scoping Study. The updated scoping study is scheduled to be released in March 2019 and Pre-Feasibility Study is expected to be released in the third quarter of 2019.
Meanwhile, in the last six months, the share price of Celsius Resources has fallen 45.71 percent as on 4 January 2019. CLA’s shares traded at $0.074 with a market capitalization of circa $55.51 million as on 7 January 2019 (AEST 3:32 PM).
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