Ongoing drilling at Celsius Resources’ (ASX: CLA) Opuwo cobalt project in Namibia has resulted in a significant extension to the existing mineral resource.
The latest resource development drilling at the project has identified the potential mineralisation extension within the DOF Northwest Anticline target.
The new zone is characterised by thicker than average and significantly flatter dipping DOF style mineralisation than occurs elsewhere within the resource.
Notable intersections include 6.3m at 0.19% cobalt and 0.35% copper from 226.70m, including 4.03m at 0.24% cobalt and 0.37% copper from 227.87m, 7.21m at 0.12% cobalt, 0.41% copper and 0.63% zinc from 629m and 5.52m at 0.15% cobalt, 0.47% copper and 0.64% zinc from 684m.
Highlights from final resource infill and extension drilling holes received in 2018 unearthed several positive intersections including 6.3m at 0.19% cobalt and 0.35% copper including 4.03m at 0.24% cobalt and 0.37% copper and 7.21 m at 0.12% cobalt, 0.41% copper and 0.63% zinc.
Resource modelling is continuing, with further results from the new discovery area to potentially be included in the updated resource.
2019 is shaping up to be a significant year for the company’s Opuwo project, with an updated resource expected in coming months.
This will come ahead of an amended scoping study, scheduled for release in March 2019.
The projects current resource, defined last April, comprises 112.4 million tonnes at 0.11% cobalt, 0.41% copper and 0.43% zinc for 126,100t of contained cobalt.
Celsius’ aim of defining a long life, reliable source of cobalt at Opuwo has now been buoyed by the initial results from the new DOF Northwest Anticline zone at Opuwo.
Celsius managing director Brendan Borg said results to date indicated significant resource potential outside the existing resource.
“Additionally, the company is excited by the potential for this area to allow consideration of alternative mining techniques and mine plans for extraction of the mineralisation,” he said.
The Opuwo project is located in north western Namibia, about 750 kilometres from the port at Walvis Bay.
The company is hopeful the proposed large-scale cobalt operation will offer it significant exposure to the lithium ion battery boom.
According to Benchmark Mineral Intelligence, consumption of cobalt in lithium batteries will more than triple between 2017 and 2026.
Shares in Celsius jumped 5.2% to $0.080 in morning trade.