Assay results from resource drilling at Celsius Resources’ (ASX: CLA) 1,470-square kilometre Opuwo cobalt project has extended the known mineralisation at depth.
In the latest assay batch, a down dip extension of 4m grading 0.13% cobalt and 0.40% copper was identified, which is similar to previously reported near surface results.
“The confirmation of significant down-dip extension to the cobalt and copper mineralisation at Opuwo has clear implications for the scale of the project,” Celsius managing director Brendan Borg said.
“We are on track to report our maiden mineral resource in February, and look forward to reporting a large number of significant drilling results in the lead up to the event,” Mr Borg added.
A diamond drill rig will resume operating early next month to test mineralisation to the west based on visual observations during the recent drilling campaign.
The drill rig will also be used to gap drill between the eastern and western mineralised zones and target other potential mineralisation.
Situated in Namibia’s north, Celsius’ 95%-owned project returned assays earlier in the month of 4.37m grading 0.17% cobalt and 0.46% copper and 7m at 0.12% cobalt and 0.46% copper.
According to Celsius, the primarily copper and cobalt sulphide ore contains low waste elements of arsenic, cadmium and uranium, which is favourable for lower cost processing.
The large-scale project is also in a mining friendly jurisdiction, which is politically stable.
Although 800km from Namibia’s capital, Opuwo is 30km from the regional centre Opuwo which can provide accommodation, supplies, fuel, airport and hospital.
Additionally, sealed roads connect the town to the country’s capital and Walvis Bay port for potential export. Also, the country’s main power station Ruacana is near the project and has a 66kV transmission line running past the project’s eastern boundary.
“Against a back drop of cobalt prices reaching US$75,000 per tonne, we are looking forward to rapidly advancing the project in 2018,” Mr Borg said.
By mid-morning trade, Celsius’ share price had slipped almost 4% to sit at A$0.125, despite an early morning run that saw the stock rise 11% to hit A$0.145.