Celsius puts the freeze on Opuwo resource upgrade to examine ‘potentially highly significant’ cobalt hits
Link copied to
A different and “potentially highly significant” type of cobalt and copper mineralisation at Celsius Resources’ advanced Namibian project could give it bonus options for mine development.
Explorer Celsius (ASX:CLA) uncovered the extension to the existing resource its Opuwo project in the latest round of drilling.
The company told investors that this new zone was characterised by thicker than average and significantly flatter, dipping mineralisation than elsewhere in the resource, giving the explorer more options as it puts together its project studies.
Given the potential significance of the latest results, and the fact further results from this zone remain pending, Celsius will defer completing an updated mineral resource at Opuwo so this area can be considered for inclusion.
Assay results were pending from one hole where geological logging identified a mineralised intercept greater than 10 metres.
Further drilling is planned for this zone “as a priority”, the company said.
Celsius managing director Brendan Borg said these initial results from the new zone demonstrated significant resource potential outside the already-large existing mineral resource.
Additionally, the company was “excited” by the potential for alternative mining techniques and mine plans.
“The current underground mining method proposed for the project is open stoping, which is considered appropriate for the moderate to steeply dipping orebody we have defined to date,” Mr Borg told Stockhead.
“The new area announced today is much flatter, (near horizontal) which opens up the possibility of using an alternative underground method such as room and pillar mining, which would be expected to provide significant cost advantages, compared to the open stoping method.”
An updated Opuwo study after shareholder backlash
In November, Celsius published a study on the big, long-life Opuwo project, but it was prevented by ASX rules from reporting production targets or financial metrics such as projected costs, revenue and so on.
That rattled shareholders who promptly sold Celsius shares down 40 per cent.
Celsius has now moved to update the scoping study and is aiming to release detailed results, including production targets and financial information derived from those targets, to the market late in the first quarter next year.