Celsius Resources spikes on back of early exploration results from Opuwo
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Shares in Celsius Resources (ASX:CLA) hit a high of 3.5 cents in the first hour of trading, representing an increase of circa 17% on the previous day’s close of 3 cents.
The spike in the share price which occurred under relatively high volumes coincided with commentary by management regarding the first six drill holes that have been completed at the group’s Opuwo cobalt project in Namibia.
It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
All holes have intersected the Dolostone Ore Formation (DOF), a recognised host of cobalt-copper-zinc mineralisation.
The six holes completed to date have transversed a length of 460 metres, part of a first pass test along a 20 kilometre strike length of the DOF horizon. DOF intersections identified to date range between 9 metres and 22 metres at depths between 25 metres and 80 metres below surface.
While assay results will be required to confirm the mineralised thickness, management said there is a definite correlation between thicknesses intersected in drilling to date with mineralised intersections in the historical drill holes which demonstrated high levels of cobalt mineralisation, as well as copper and zinc.
Adding another dimension to the story was the provisional identification by company consultant, Brendan Borg of cattierite (cobalt sulphide) as the cobalt mineral. He is of the view that the presence of this mineral in drill chips demonstrated the potential of the Opuwo project.
Samples from the first four holes have been submitted for laboratory testing with the results anticipated in approximately three weeks.