Cobalt explorer Celsius Resources (ASX: CLA) has returned up to 0.17% cobalt from a resource drilling campaign at its Opuwo project in Namibia.
The campaign is due for completion mid-month with more than 14,000m drilled by 9 December.
Better assays from the first two batches included 4.37m grading 0.17% cobalt and 0.46% copper, 7m grading 0.12% cobalt and 0.46% copper, and 4.24 grading 0.15% cobalt and 0.45% copper.
“With the initial resource drilling nearing completion, our focus will now shift to resource modelling and estimation, as we close in on our maiden resource reporting, scheduled for February,” Celsius Resources managing director Brendan Borg said.
He added the assays had confirmed additional mineralised zones and semi-massive sulphide occurrences.
“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.
The Opuwo cobalt project encompasses 1,470 square kilometres and is situated in Namibia’s north west and is about 800km from the country’s capital Windhoek.
According to Celsius, Opuwo is in proximity to “excellent infrastructure” with the regional Opuwo centre about 30km to the project’s south. The town has accommodation, fuel, supplies, an airport and hospital, with sealed roads connecting the town to the capital and Walvis Bay port.
Additionally, the country’s main power station Ruacana is close to the project with a 66kV transmission line running past its eastern boundary.
As well as its flagship Opuwo project, Celsius has a 30% stake in the Carnilya Hill nickel project, which is waiting for the nickel price to rise to resume mining. Celsius owns the Abednego Hill project in WA’s eastern goldfields in an area prospective for nickel, copper and zinc.
By mid-morning trade, Celsius’ stock had fallen more than 18% to A$0.11. Despite the drop, the price remains higher than the mid November price of A$0.08.