Several milestones were reached during the March quarter, such as the closure of the capital raising which received subscriptions for $650,000 under a placement of 65 million shares, together with one free attaching option exercisable at 2 cents per share.
Funds raised have supported the acquisition of the Barraba Copper Project, which was completed in April, including initial project works over the 2,365 hectares of exploration licences covering the project area that has never been systematically tested by modern exploration techniques.
The Barraba project sits along the Peel Fault line and encompasses the historical Gulf Creek and Murchison copper mines.
This region is known to host VMS style mineralisation containing copper, zinc, lead and precious metals.
Historical workings at Gulf Creek produced high-grade copper and zinc for a short period around the turn of the 19th century, and this area will form a key part of the initial exploration focus.
The initial exploration program will include drill testing of areas below the historically identified deposits, plus high-level exploration targets delineated by an induced polarisation (IP) survey of parts of the license area that were never followed up.
Comet also intends to complement the drill testing with geophysics to provide additional information about potential parallel and blind lodes, in addition to the known historical lodes.
The company believes that copper is set to see an increase in demand due to the global efforts to reduce emissions from the transport network as well as from generation of renewable electricity.
Copper is not only an important part of the batteries used in battery electric vehicles (BEV’s), it is also used extensively in the electric motors that drive the wheels of BEVs.
It is also used intensively in the generation of electricity from renewables, such as solar and wind.
Comet believes that the Barraba project complements its existing Springdale graphite project due to their shared end uses in batteries for BEV’s and better utilises available board and management resources with the aim of driving shareholder value.
Springdale Graphite Project
In addition to the Barraba Copper Project the company is also the 100% owner of the Springdale Graphite Project, 30 kilometres east of Hopetoun in WA.
Test work programs are currently underway to characterise the graphite and establish recoveries with results expected in Q2.
Managing director Matthew O’Kane said: “The metallurgical test work for Springdale was temporarily deferred in Q1 as we dealt with the changed market conditions and the Barraba transaction.
“Work has recommenced, and we look forward to sharing those results as they become available.”
Comet is using samples produced in Australian test work for international test work programs to assess spectrum of off-take markets and the value-add potential of Springdale’s high-grade graphite.
The company’s directors have been monitoring the situation closely and have considered the impact of the COVID-19 pandemic on the business, however the situation is continuing to change and evolve.
In compliance with its continuous disclosure obligations, Comet will continue to update the market in regard to any material impact of COVID-19 on its operations, work programs or any other material adverse impact on the company.
The company finished the March quarter with $544,000 in cash compared to $427,000 at the end of the previous quarter.