Celsius Resources Ltd (ASX:CLA) has decided to significantly slow work on the evaluation of its 95%-owned Opuwo Cobalt Project in Namibia.
Evaluation work will be slowed until the cobalt price improves markedly from the current level, which is around US$30,000 per tonne.
The company remains in a strong cash position, with $9.6 million in cash reserves as at 31 December, 2018.
Celsius said it plans to evaluate additional, complementary opportunities in the battery minerals space.
READ: Celsius Resources extends cobalt mineralisation at Opuwo in Namibia
Celsius has been completing trade-off and optimisation studies as an initial phase of the pre-feasibility study (PFS) for the Opuwo Project.
The goal was to provide an updated scoping study to the market during the current March quarter.
Work currently in progress includes updated resource modelling and metallurgical test work.
Initial met work results and cobalt price calls for slow down
A positive economic outcome from the scoping study is highly dependent on both a strong cobalt price and successful results from the metallurgical test work.
The initial results from the current metallurgical program have demonstrated that further test work is required to optimise the process for recovery of the value metals including cobalt from the mineralisation.