Modern Mining February 2024

CRITICAL METALS

from the Molulu project trend between one and a half and two per cent copper, “with grades of up to 33% Cu in super high-grade sulphide ore”. “Even though we have undertaken a limited amount of drilling, we have garnered immense inter est from the market with several plant operators keen to purchase our ore. These are exceptional grades when compared to the average grades coming out of Chilean, Peruvian, or Arizona copper mines, which is around 0,8% Cu.” The company recently signalled that it is in the market to acquire a processing plant in order to process the Molulu ore into copper cathode and potentially cobalt hydroxide. Talks with several plant owners are underway and further news on the poten tial plant acquisition is to be announced shortly. “This allows Critical Metals to increase its margins on the ore from the Molulu Project by being able to sell the higher value-add products that owning a pro cessing plant produces and provides finished goods to a wider global market.” “We believe that the best way to increase share holder value is to be in control of our own destiny. The acquisition of a processing plant will mean that we get full value for processing Molulu copper and cobalt ores, thereby ensuring superior margins.” Market outlook for copper and cobalt Given that copper is critical to the electrification pro cess, Fryer anticipates a steady increase in demand for copper and cobalt going forward. However, the supply of copper remains con strained as copper mines in South and North America face declining copper head grades and higher costs of production. “Cobalt is a mineral used in high tempera ture applications. If more nuclear power plants are required to help the world move away from burn ing coal to generate electricity, much more cobalt will be needed as cobalt is a key metal used in

believes that the strike length is a minimum of three kilometres. To better understand the size and scale of its Molulu asset Critical Metals is currently undertaking diamond drilling of the oxide and the sulphide zones. Fryer remains upbeat, stating that the grades

Site clearing and infrastructure development underway.

Drilling taking place at the Molulu Project.

20  MODERN MINING  February 2024