Cape Lambert Resources Limited (ASX: CFE, FRA: HM5) has recently announced an extensive update on the status of the Kipushi Tailings Project in the DRC.
In addition to details regarding the next steps towards production, the new ownership structure, as well as new and excellent drilling results were published.
As a result of this update, the Australian Stock Exchange has also lifted the trading halt – the very low trading volumes – taking into account the quality of the update – suggest that a large number of investors have not yet taken notice of this update or have not yet priced in the reported facts appropriately.
We expect this to change in a timely manner and, against the backdrop of the significant increase in the resource estimates, we anticipate increasing interest from existing and new potential investors. So far, only about 50% of the resource has been drilled, leaving still considerable upside potential for the resource.
Also the published timeline allows to follow the next steps and de-risks the project directly. In the course of this development, we therefore expect the parallel reduction of the risk discount in the project due its location in the DRC, which should increase the equity valuation.
As previously reported by the company, there are various partners and options available to fund these steps.
Everyone is talking about sustainable mining and projects, which do not meet the relevant standards will face more and more difficulties in the future to sell their product to responsible industrial companies. CAPE LAMBERT’s cobalt does not need to be pulled out of the ground, but is already in tailings (as a “waste product” of earlier mining activities) on the surface. The justified harsh criticism of mining operation in the DRC (child labor, etc.) are therefore eliminated completely.
As a result, Cape Lambert’s cobalt should be of great interest to the battery industry.
In the following link, please find the published update to the cobalt copper tailings project Kipushi in the Democratic Republic of the Congo (DRC) once more: