Celsius Resources starts drilling to upgrade Opuwo cobalt-copper resource

Celsius Resources ASX CLA reconnaissance drilling Opuwo cobalt copper resource
Celsius Resources hopes to expand its current cobalt-copper resource at Opuwo with its next round of reconnaissance exploration.

Celsius Resources (ASX: CLA) has started reconnaissance drilling at its Dolomite Ore Formation (DOF) North prospect about 10km north of its maiden cobalt and copper resource for its 95%-owned Opuwo project in Namibia, with an electromagnetic survey of the project tipped to start in July.

The company, which defined a maiden resource for Opuwo in April of 112.4 million tonnes grading 0.11% cobalt, 0.41% copper and 0.43% zinc at a 0.06% cobalt cut-off, has mobilised a drill rig at the project’s northern prospect.

Celsius expects the first assays from the reconnaissance drilling will be returned in about five or six weeks.

Celsius managing director Brendan Borg said he expected the latest drilling would provide additional data to upgrade to the company’s maiden resource.

“Whilst we have recently reported our maiden JORC mineral resource for the Opuwo cobalt project, we have continued to expand the mineralised zone with new drilling this year,” he said.

“We are looking forward to the commencement of the airborne EM survey, which will assist in understanding the potential still to be uncovered at the Opuwo project.”

Forty-five diamond-drill holes have been completed this year at the cobalt project, with Celsius today affirming the latest three batches of assays included significant intersections such as 5.33m grading 0.14% cobalt and 0.49% copper from 184m, and another 5m intersection grading 0.13% cobalt and 0.50% copper from 38m.

The assays are taken from two sections to the left and right of an area Celsius has flagged as a dolomite ore formation horizon.

Electromagnetic survey

Celsius reported it had also appointed SkyTEM to undertake a fly-over magnetic and electromagnetic geophysical survey over three key licences at the Namibian project.

SkyTEM plans to start its helicopter-borne survey in July, which is expected to take 28 days to complete.

Celsius, which had a market capitalisation of A$142.3 million this morning, anticipates the survey results by October.

The survey will cover multiple cobalt and copper targets including the main DOF as well as the DOF North and West prospects.

Other areas within the project that potentially host lead, zinc, silver, chromium, gold and vanadium will also be included in the survey.

Celsius’ securities were unchanged at A$0.20 by late morning.

Filip has written in both Australia and abroad covering the global economy, geopolitical issues, commodities and small cap stocks on the ASX. He also has many years experience as a share market trader.