The Opuwo Project has the potential to host large-scale sediment hosted copper-cobalt mineralisation, with mineralisation over more than 15 kilometres of strike length.
Drilling is continuing at the project, and a significant resource drilling campaign is scheduled to commence in October.
Celsius has also commenced a scoping study, enabling an initial evaluation of the key areas of metallurgy and mining engineering.
The company is aiming to continue to meet its expenditure obligations under the joint venture so that it may acquire further interest in the project under a staged earn-in as follows:
- The initial 30% interest was earned by spending $500,000 within 6 months of exercising the option to proceed;
- A further 30% to be earned following expenditure of a further $1 million within 12 months of completing the stage 1 earn-in; and
- A final 16% to be earned following expenditure of a further $1 million within 6 months of completing the stage 2 earn-in.
Cobalt prices expected to rise
Following the earning of the 76% interest, all parties will be required to contribute to the exploration.
A call option in the agreement allows Celsius to acquire an additional 20% interest in the project for $1.25 million, prior to the completion of a bankable feasibility study.
Automotive-related demand for cobalt containing battery materials is expected to rapidly increase in the coming years with increasing sales of plug-in hybrid and fully electric vehicles.
Cobalt prices are forecast to rise as global demand for refined cobalt exceeds the 100,000 tonne mark and mine/refined supply tightens.