CELSIUS RESOURCES LTD (ASX: CLA) SMASHES ALL EXPECTATIONS WITH ITS MAIDEN
JORC COMPLIANCE RESOURCES AT THE OPUWO COBALT PROJECT
Market Rewarding Companies with Quality Cobalt Deposits
Australian listed Celsius Resources Ltd.’s (ASX:CLA) share price opened this morning at $0.185, up from its previous close at $0.160 and by 4pm, Sydney time the share price was at $0.225 – testament to a fantastic first JORC-Compliant Resource Statement.
This article presents a closer analysis of the key features of Celsius Resources Ltd’s (ASX:CLA) Resource Statement and the overall investment opportunity.
Key to Celsius Resources’ Success: A Thorough Drill Programme
In December, Celsius Resources Ltd (ASX:CLA) completed its drill programme, that spanned more than 17,000 meters, and explored over a hundred drill holes at its Opuwa Cobalt Project in Namibia.
Through previous announcements, the market already knew that the Company’s drill results had been encouraging, demonstrating a large and consistent mineralized system.
The Mineral Resource estimate confirms over 15km Of Strike, with over 100km of total Prospective Strike identified.
Celsius Resources Ltd (ASX:CLA) Mineral Resource estimate utilizes data from 128 drill holes, which were sampled at Activation Laboratories Limited (ACTLABS) in Windhoek.
The cut off grade of 600ppm (0.06%) was selected This cut-off is higher than many of its peers, an indication that management is being cautious in its resource estimation and the economic resources may actually be much larger if cobalt prices were to hold up. For instance, at 400ppm (0.04%), the estimated resource is 142,800 tonnes or 13% higher.
Table 1: JORC Compliant Indicated and Inferred Mineral Resources
|Category||Ore Type||Cobalt Cut off (ppm)||Tonnage (Mt)||Cobalt (%)||Copper (%)||Zinc (%)||Contained Cobalt (t)|
Celsius Resources Ltd’s (ASX: CLA) JORC Mineral Resources Statement Smashes All Expectations as Celsius
Takes its Place as the Largest Cobalt Resource Outside the DRC
Excellent Cobalt Recovery
Deposits are meaningless if they are not recoverable. To this end, Celsius Resources Ltd has conducted significant metallurgical test work on the Opuwo Project’s Mineralization:
- Leach extraction tests on Opuwo’s sulphide concentrates demonstrates high leach extractions of around 95% for the metals of interest.
- Conventional sulphide flotation tests without roasting show recoveries of 80% to obtain a cobalt concentration of 1.5%.
- It is believed that the deposit is initially amenable to OPEN PIT mining methods as the mineralization occurs at relatively shallow depths.
- Low in deleterious elements including arsenic, cadmium and uranium
Stable Jurisdiction – Great Address
On the 11th of April, Namibia’s President Dr. Hage G.Geingob gave the State of the Nation Address. The most encouraging news as it pertains to mining in the country or investing in Namibia in general is that the President scrapped a clause in the economic empowerment framework that would have forced white-owned businesses to sell a 25% stake to disadvantaged black citizens.
Much like South Africa, Namibia has been trying to rectify past injustices and economic imbalances through redistribution of wealth. However, it was found that forcing the 25% equity stake would not translate to broad-based empowerment and could jeopardise the country’s investor perception, particularly in the mining sector where there are economic and capital risks.
Clarified: No Black Economic Empowerment Or Indigenization Deals to be Forced On Namibia’s Miners or Investors
Celsius Poised to Benefit from Increasing Cobalt Prices
Celsius Resources Ltd’s (ASX: CLA) presents:
- A JORC compliant resource that has surpassed all expectations
- The largest cobalt/copper deposit outside the DRC- 126,100 MT of contained cobalt
- A Deposit that is highly scalable, with near surface mineralization
- Favorable metallurgy as conventional floatation tests demonstrate recoveries of 80% to obtain a cobalt concentration of 1.5%.
- A project in a stable jurisdiction with Namibia being celebrated for its increasingly investor-friendly policies, and most recently being celebrated for scrapping the idea of a mandatory 25% black economic empowerment/ indigenization policy.