Celsius Resources is in early-stage discussions regarding the potential disposal of its interest in the Opuwo Cobalt Project.
The Opuwo Project is held under Celsius Resources’ subsidiary, Opuwo Cobalt Holdings (Pty) Ltd.
Celsius has 95% ownership of the Opuwo Project, with Namibian former Robben Island Political Prisoners Trust holding the other 5%.
Opuwo Cobalt Pty Ltd shareholders are Elysium Growth Nominees, trustee for the Mielikki’s Grove Trust, Morrigan Services, Naley Pty Ltd, Golden Dawn Limited, Lenoir Capital, Greensea Investments Pty Ltd and JP Security Holdings.
The project is in the Kunene region, about 730 km northwest of the Namibian capital, Windhoek.
Rio Tinto, which drilled about 100 km in the early 1990s, was not looking for cobalt.
The company announced in its quarterly activities report for March 31, 2024, that it is in early-stage discussions with a strategic partner(s) concerning the disposal.
Celsius Resources managing director Brendan Borg told Reuters in March 2018 that they were looking at late 2020 for the first production.
Borg also said that if they cannot reach production, the company might divest from the project before that time.
The mines ministry renewed the project’s EPL 4346, which covers approximately 683 km2, on October 11, 2023, for two years.
The renewal was to enable Celsius Resources to evaluate the project’s viability further and strategically unlock its potential value to find a suitable partner.
Ongoing trade-off studies on mining costs, production rates, and the possibility of processing oxide ores were undertaken to determine project viability and financial outcomes.
Celsius Resources acquired 100% of Opuwo Cobalt Pty Ltd and gained access to up to 76% of the Opuwo Cobalt Project in January 2017.
The agreement entailed that Celsius Resources would gain an initial 30% interest by spending of $500,000 within six months of exercising the option to proceed—a further 30% to be earned following expenditures of a further $1,000,000 within 12 months of completing stage 1 earn-in—and – a final 16% to be earned following spending of an additional $1,000,000 within six months of completing stage 3 earn-in.
By January 2017, Celsius Resources had acquired the initial 30% of the project via a joint venture with Gazania Investments 196 (Pty) Ltd and Amor Investments (Pty) Ltd, who have the remaining 70% interest together.
This initial interest was carried via Celsius Resources’ wholly owned subsidiary, Opuwo Cobalt Pty Ltd, which, in turn, holds 30% of the issued share capital in Gecko Cobalt Holdings (Pty) Ltd.
Gecko Cobalt is the Namibian joint venture entity with the ultimate title to EPL 4346.
In September 2017, Celsius Resources announced that it had moved to gain 95% interest in the Opuwo Cobalt Project.
Gecko Namibia became Celsius’s largest shareholder due to the transaction involving new licenses surrounding Opuwo, totalling approximately 782 km2 acquired from Gecko Namibia.
The transaction brought over 100 km of cobalt-copper prospective horizon under the control of Celsius.
Gecko Namibia managing director Pine van Wyk was appointed to Celsius Resources’ board.
Celsius Resources scheduled drilling to test several identified targets in early March 2018, including depth extensions to cobalt-copper-zinc mineralisation intersected in historical drill holes DOF01 and DOF02.
The drilling would also test below-grade trench samples and other surface samples from outcrops in the western portion of the DOF.
Extensions to the DOF horizon undercover were also tested based on re-interpreted ultra-high-resolution aeromagnetics.
The critical aim of drilling was to provide a systematic first-pass test along a 20km strike length of the DOF horizon.
A series of shallow RC drill holes spaced between 500 and 1,500 metres apart will be drilled in the first phase.
Drilling would also provide a first test of interpreted DOF positions under shallow cover.
Ultra-high-resolution aeromagnetic data indicates several NW-SE structures in the central DOF where the horizon is masked by the recent shallow cover and folding of the horizon, with both processes hypothesizing the potential for enrichment of the cobalt mineralisation.
Celsius Resources announced the Opuwo Cobalt project’s maiden mineral resource estimate, comprising 112.4 million tons at a grade of 0.11% cobalt, 0.41% copper, and 0.43% zinc, at a cutoff grade of 0.06% (or 600 ppm) cobalt, on April 16, 2018.
The company said the mineral resource estimate represented a cobalt of 126,100 tons, comprising 72.0 million tonnes at 0.11% cobalt, 0.42% copper and 0.41% zinc in the indicated category.
Furthermore, Celsius Resources stated 40.5 million tons of 0.12% cobalt, 0.41% copper, and 0.46% zinc in the inferred category.
On April 14, 2018, Celsius Resources was listed on the Namibian Stock Exchange.
The mines ministry renewed the Opuwo cobalt project license in April 2021 until March 2023.
On July 1, 2021, Celsius doubled mineral resources at the Opuwo cobalt-copper project.
The updated indicated and inferred mineral resources were doubled to 225.5 million tons, grading 0.12% cobalt, 0.43% copper, and 0.54% zinc based on all the completed drilling.
The update comprised 225.5 million tons of 0.12% cobalt, 0.43% copper, and 0.54% zinc.
The mineral resource estimate represented cobalt at 259,000 tons and copper at 970,000 tons.
In November 2023, Celsius received the renewal of EPL 4346 for two years.
The company said the renewal would enable it to further evaluate the project’s viability and find a suitable partner.
Ongoing trade-off studies on mining costs, production rates, and the possibility of processing oxide ores are being conducted to determine their viability and financial outcomes.
Celsius Resources says it will announce in accordance with its continuous disclosure obligations if negotiations are complete and a binding agreement is executed.
According to the quarterly activities report dated April 30, 2024, Celsius Resources says it spent about A$1 million on exploration expenditure during the quarter, primarily relating to the development of Makilala Mining Company, Inc., a Philippine affiliate of Celsius in the Philippines, and another Philippine project, Sagay and Opuwo.
Celsius Resources says there were no mine production or development activities for the quarter.
