AMN - NAMIBIA: Celsius completes initial earn-in

Celsius Resources has completed the acquisition of the initial 30% interest in the Opuwo Cobalt Project in Namibia. The project has the potential to host large-scale sediment hosted copper-cobalt mineralisation, with mineralisation over more than 15km of strike length.

The project is held in a joint venture with Gazania Investments 196 and Amor Investments, who together hold the remaining 70% interest. The initial interest of Celsius is held by its wholly-owned subsidiary, Opuwo Cobalt Pty Ltd.

As a result of its expenditure to date on the project, Celsius has demonstrated mineralisation over more than 15km of strike length.

A key recent development has been the discovery of additional Dolomite Ore Formation (DOF) in a drill hole approximately 350 metres north of the known and mapped mineralisation that has been systematically tested by the ongoing drill program.

Celsius managing director Brendon Borg said, “The identification of additional mineralisation north of the DOF horizon is an exciting development. We look forward to receiving the assays from these holes in the coming weeks, and following up with further drilling in this area to enhance our understanding of what this means for the project.”

Drilling is continuing and a significant resource drilling campaign is scheduled to commence in October. Scoping Study activities have also commenced, enabling an initial evaluation of the key areas of metallurgy and mining engineering.

The company aims to continue to meet its expenditure obligations under the JV so that it may acquire further interest in the project under the staged earn in.

The initial 30% interest was earned by spending $500,000 within six months of exercising the option to proceed and a further 30% can be earned following expenditure of a further $1 million within 12 months of completing the stage 1 earn-in. A final 16% can be earned following expenditure of a further $1 million within six months of completing the stage 2 earn-in.

Following the earning of the 76% interest, all parties will be required to contribute to the exploration. A call option in the agreement allows Celsius to acquire an additional 20% interest in the project for $1.25 million, prior to the completion of a bankable feasibility study.

www.celsiusresources.com.au