Low cobalt prices compromise the evaluation of the Opuwo Project by Australian firm
Australian mining company, Celsius Resources this week in their quarter activity report for March, took the decision to significantly slow work on the evaluation of the Opuwo Project, until such time as the cobalt price improves markedly from current levels.
The Opuwo Project hosts a substantial cobalt resource located in an excellent jurisdiction for mining, and the company remains confident that the project continues to represent a key opportunity when the cobalt price improves and/or with successful optimisation of metallurgical recovery of the value metals from the mineralisation, the report released stated.
“One or both of these outcomes could significantly change the Board´s view about the Opuwo Project and, should they occur, the Board will reassess the status of the Opuwo Project and accelerate work programs in response,” the company said.
At the end of the quarter, the company held approximately $7.9 million in cash reserves with approximately $750,000 to be spent on the project in the forthcoming quarter.
“The majority of costs are associated with finalisation of in-progress mining, metallurgy and environmental studies, redundancies to staff, closing down of operations and community consultations regarding the altered time frame for the Project.,” the company added.
As detailed previously, Brendan Borg has stepped down from his role as Managing Director to a Non-executive role, while Pine van Wyk will continue as Project Director however following a 3 month handover / notice period he will fill this role on a consultant basis.
According to the report all director fees have been reduced to $4,000 per month to assist in the preservation of the company´s cash reserves.
“The company has commenced reviewing potential acquisitions and investments in commodities and jurisdictions which either complement or diversify the company’s current commodity exposure,” Celsius added.