Celsius Resources Ltd (ASX:CLA, AIM:CLA) has received a two-year renewal from the Namibian Ministry of Mines and Energy of the exclusive prospecting licence for the Opuwo Cobalt-Copper Project in Namibia.
The two-year renewal of the prospecting licence for EPL 4346, which covers around 683 square kilometres and is held by the company’s Namibian subsidiary Opuwo Cobalt Holdings (Pty) Ltd, was issued on October 11, 2023.
This renewal will enable the company to further evaluate the project’s viability with a view to finding a suitable partner.
Mining-friendly location
The Opuwo project is about 730 kilometres northwest of the Namibian capital city Windhoek. It is a large-scale project located in a mining-friendly, politically stable and safe location.
It is supported by strong infrastructure with ample access to grid power, water, and services allowing a range of development options.
Ongoing trade-off studies on mining costs, production rates and the possibility of processing oxide ores are being conducted by Celsius to determine the viability and financial outcomes.
“A positive development”
Celsius managing director Peter Hume said: “This is a positive development as we are currently reviewing the Opuwo Project to understand how we can strategically unlock its potential value given the high demand for cobalt from the electric vehicles sector.
"This project can potentially produce non-conflict cobalt in a politically stable country for more than 40 years.
“With the renewal of the permit and recent positive metallurgical test work results, we anticipate this will attract potential partners in the project.”
Resource estimate
The updated mineral resource estimate (MRE) announced on July 1, 2021, was based on all drilling completed by Celsius at Opuwo and comprises 225.5 million tonnes at a grade of 0.12% cobalt, 0.43% copper and 0.54% zinc.
This MRE has contained cobalt of 259,000 tonnes and contained copper of 970,000 tonnes.
There are 45.3 million tonnes at a grade of 0.11% cobalt, 0.44% copper and 0.51% zinc in the indicated category with 180.2 million tonnes at 0.12% cobalt, 0.43% copper and 0.55% zinc in the inferred category.