Comet Resources Gears Towards Low-Carbon Revolution Through Copper Exploration

Mineral explorer and developer, Comet Resources Limited (ASX:CRL) appears to garner its focus towards the acquisition of the Barraba Copper project located in the North East New South Wales. The acquisition of the Barraba Project comes as the company’s strategic endeavour to focus on battery commodities, inclined at transitioning towards low-emission revolution.

Concerning the acquisition of the Barraba Copper Project, Comet has received a firm commitment for $2M that would further bolster the process.

ALSO READ: Notable Development for Comet Resources : Strong Endorsement Received for Barraba Project Acquisition

Proposed Acquisition of Copper Project

Comet Resources has proposed the acquisition of the Barraba Project that would bring copper exploration as one of the significant activities for the company. After the capital raising has paved the way for the project acquisition, the company would seek shareholder’s approval for the project. The explorations, including the initial drilling, is planned to commence in Q2FY20.

The proximity of the North East New South Wales-based project to the regional centre of Tamworth enhances its locational significance. Barraba Project in the Tier 1 Jurisdiction (NSW) emerges as a highly prospective copper exploration project backed by following attributes:

Attractive Market Opportunities Presented By The Copper Exploration

Barraba project opens avenues for copper exploration for Comet Resources. The global low-carbon emission drive is expected to generate massive market opportunity for the company in the area of Copper exploration and development.

The key insights that are likely to boost the copper demand in the growing environmentally conscious global scenario:

• The utilisation of Copper by BEVs is four times higher than conventional internal combustion engine vehicles.
• Copper consumption would further intensify in the future BEVs which are larger and longer.
• Increase in the models of EVs from 179 at the end of 2018 to 230 by 2021.
• Bernstein Research points out that solar and wind energy consumes 37 times more copper than conventional power generation.
• S&P Global Market Intelligence forecasts a deficit of 5.7 Mt p.a. by 2030 in copper supply that accounts for 28% of the total estimated demand.
• Shortage of copper discovery to meet the demand

As per the company, Copper compliments well with the graphite exposure, which is the Comet’s existing battery commodity.

Initial Drilling Plan at Barraba Project

• GCD1-4 plans for drill testing of areas below historically known lodes for extensions;
• Downward Induced polarisation (IP) to test for the presence of additional parallel or blind lodes;
• GCD5/6 to test IP anomaly.

Comet’s existing Springdale Project: A pride to its Project Portfolio

The ownership of the Springdale Project assists the company in ensuring its focus towards the supply of high-grade graphite to global niche markets.

With the maiden inferred resource of 15.6Mt @ 6% Total Graphite Carbon (TGC), Springdale Graphite Project encompasses broad zones containing high-grade graphite. Springdale’s highest-grade intersection is 3.23m@ 51.02% TGC from 35.27m within 42.5m @ 17.02% TGC from 20m in hole HD024A.

The significance of the project lies in its strategic location that leverages the reliable infrastructural facilities. Springdale project is located 150 kms west of Port at Esperance, which allows for the secure transportation of the extracted resources.

Furthermore, Grid power, Piped gas and Sealed roads further accentuate the infrastructural advantage associated with the project. The company has 100% owned licences and Freehold land for the project. Comet Resources has secured an option to secure the farmland, and the project comes under the top mining jurisdiction.

Stock Performance

By the end of the trading session on 20 February 2020, CRL traded flat at $0.024 with a market cap of $7.1 million. The stock has generated decent YTD return of 20%.

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