Celsius Resources has revealed what it describes as a “globally significant potential cobalt source” at the Opuwo project in Namibia, southern Africa, sending the company’s shares flying on the ASX.
The company’s maiden JORC mineral resource estimate at Opuwo includes 112.4Mt at 0.11 per cent cobalt (cutoff grade 0.06 per cent), 0.41 per cent copper and 0.43 per cent zinc.
In an ASX announcement, Celsius reported that 126,100t of contained cobalt significantly exceeded its expectations and a previously stated exploration target (by 174 per cent).
The result includes 72Mt at 0.11 per cent cobalt, 0.42 per cent copper and 0.41 per cent zinc of indicated resource, as well as 40.5Mt at 0.12 per cent, 0.41 per cent copper and 0.46 per cent zinc of inferred resource.
Celsius managing director Brendan Borg said the maiden JORC mineral resource “meaningfully” exceeded the company’s expectations. And the market responded to the news, with the company’s value up by more than 40 per cent on April 16.
“This is an important milestone that has defined a globally significant potential future cobalt source at Opuwo,” Borg said. “The results of the external resource modelling and estimation confirm the consistent and expansive scale of the project.”
The estimate was delivered from 128 drill holes and covers a zone of around 10km, according to Celsius, with mineralisation remaining open in all directions.
Celsius is already conducting further drilling at the 95 per cent-owned project, which it hopes will lead to future upgrades to the maiden resource.
“The mineral resource will underpin our project scoping study, for which key work programs are advancing well,” Borg added.
Celsius is due to release the project’s scoping study, which will include a detailed mining study, later this quarter.