Celsius’ maiden Opuwo cobalt resource ‘exceeds’ expectation

Celsius Resources ASX CLA Opuwo cobalt Namibia maiden resource drilling
Drill core from Celsius Resources' Opuwo cobalt project.

Celsius Resources (ASX: CLA) has debuted its maiden JORC resource, which includes 126,000 tonnes of contained cobalt, and “exceeds” the company’s expectation for its 95%-owned Opuwo cobalt project in Namibia.

The full maiden resource is 112.4 million tonnes grading 0.11% cobalt, 0.41% copper and 0.43% zinc using a 0.06% cobalt cut-off grade.

“The maiden JORC mineral resource for the Opuwo project meaningfully exceeds the company’s expectations,” Celsius managing director Brendan Borg said.

“This is an important milestone that has defined a globally significant potential future cobalt source at Opuwo,” Mr Borg added.

Of the total resource, 72mt was classified in the indicated category and graded 0.11% cobalt, 0.42% copper and 0.41% zinc. The other 40.5mt was delineated as inferred and graded 0.12% cobalt, 0.41% copper and 0.46% zinc.

Opuwo project

In February, Celsius reported drill results from resource drilling with cobalt grades ranging between 0.09% to 0.15%. Copper grades where between 0.37% and 1.01%.

The widest intersection was 10m grading 0.13% cobalt and 0.45% copper. The resource drilling campaign totalled 99-holes for 17,266m across pre-defined targets.

Metallurgical test work has indicated the mineralisation is amenable to conventional flotation processing with more detailed results anticipated imminently.

Opuwo covers 1,470 square kilometres and is 30km from its namesake town which hosts essential infrastructure including accommodation, supplies, fuel, airport and a hospital.

The project also has access to power with a 66kV transmission line crossing its eastern boundary and a nearby power station.

Investors react positively

Investors reacted positively to this morning’s news, with the company’s share price rocketing almost 30% to A$0.205 by early afternoon trade.

Celsius’ share price has soared more than 11% over the past few weeks from A$0.097 on 14 March to today’s high.

Lorna has more than 10 years experience as a finance journalist and editor. She has written for an array of industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has covered a myriad of small and large cap ASX and dual-listed stocks.