19th Dec 2023 16:59
(Alliance News) - Critical Metals PLC has provided an operational update on Tuesday for its flagship Molulu copper-cobalt project.
Critical Metals PLC holds an indirect 70% interest in the Moulu copper-cobalt project in the Democratic Republic of Congo through its controlling 100% stake in Madini Occidental Limited.
In October, the Africa-focused mining investor entered into an offtake agreement with OM Metals SARL, a Kinshasa-based buyer, for "as much copper oxide ore as Molulu can produce."
Critical Metals said on Tuesday that it had acquired permits for trucks to use public roads and permission to transverse neighboring property.
The ore purchase agreement with OM outlines the use of ten 40-tonne trucks, which will transport up to 10,000 tonnes copper ore from Molulu to the OM Metals plant per month. Critical metals has also decided to invest in this public road during the holiday season to "ensure reliable ore delivery at anticipated volumes."
The group also embarked upon a 24-hole drilling campaign to identify copper-cobalt mineralisation in the area.
The group's Chief Executive Officer Russell Fryer said: "The outcomes from our 24-drill-hole campaign have been tremendously encouraging, revealing high-grade copper mineralization that underscores the remarkable promise of the Molulu project. This success not only demonstrates our operational efficiency but also highlights our strategic focus on enhancing both the logistics and infrastructure critical to our operations. Our commitment to upgrading road access, alongside our notable collaboration with OM Metals and the planned acquisition of a processing plant, are pivotal steps towards scaling our business."
Ore sales are expected to recommence in the first quarter of 2024.
Critical Metals shares were down 7% at 10.68 pence each in London at close on Tuesday.
By Hugh Cameron, Alliance News reporter
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