COMET RESOURCES LIMITED - ASX: CRL

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Description

Comet listed on the Australian Stock Exchange in 1994. The Company discovered and studied the Ravensthorpe Nickel Project which is now part of a 2.7 billion dollar project being developed by BHP Billiton. In 2001 Comet successfully sold its final equity to BHP Billiton and returned to Comet shareholders $32 million.

Comet has a number of projects that it is currently evaluating. Comet has cash assets of approximately $2.5 million, and 7 million Ferrowest shares and has approximately 69 million shares on issue.

Browns Reef Base Metal Project, NSW (100% Comet)

The Browns Reef Project is located approximately 5 kms west of the township of Lake Cargelligo. Lake Cargelligo is serviced by the New South Wales rail network and there is a gas pipeline within approximately 100 kms.The tenement numbers are EL6549 and EL6321 and cover 57.5 km². The project occurs mainly on Freehold agricultural land. Established roads and tracks allow ready access. Comet has completed 13 diamond drill holes for a total of 4,775 metres (including pre-collars). This work will continue in the upcoming financial year.

Kerrs Creek Project, NSW (100% Comet)

The Kerrs Creek Project covers an area of 288 km². It is centred about 20km north of Orange, a major mining centre hosting Newcrest's Cadia mine, and Tri Origin Australia NL's Lewis Ponds deposit.

Murrumbateman Project, NSW (100% Comet)

This Project is located approximate 80km north of Canberra. The area was mainly explored in the late 1980's by Kennecott, Alkane and Central West Gold. Exploration included soil sampling, ground magnetics, drilling and metallurgical studies. Reports indicate soil sampling and trenching delineated two zones of gold mineralisation with the best result of 39m @1.63g/t Au from a costean. The northern zone is still open to the northeast.

Yalgoo Iron Project, WA (Ferrowest Joint Venture)

In October 2005 Comet entered into a Joint Venture with newly formed Ferrowest Pty Ltd to investigate Comet's Yalgoo Iron Project. Ferrowest proposes to combine the existing sealed road and natural gas infrastructure that pass through the Yalgoo Iron Project with newly developed iron nugget manufacturing technology to produce up to 1 million tonnes per annum of high grade pig iron for export through the existing facilities at the Port of Geraldton.

Ferrowest listed on the ASX on 27 July 2006. Comet agreed to swap its equity in the project for 8.7 million shares in the newly listed company. The shares were escrowed for a period of 12 months. In May 2007 Comet purchased 4.35 million Ferrowest options exercisable at 25 cents per share for $174,000. During June 2007 Comet sold 1.4 million options to recoup these costs and still holds 2.95 million options. Comet still holds 8.7 million fully paid ordinary shares in Ferrowest.

In June 2007 Ferrowest announced it's first JORC compliant resource statement for the Yalgoo Iron Project. The company reported 112.5 million tones at 25.3% total Fe and stated that this resource underpins iron requirements for 20+ years project life. Drilling is continuing.

Utopia Project ELA28/1398, ELA28/1399 & ELA28/1412, WA (100% Comet)

The Utopia Project is located approximately 125 kilometres (km) east-southeast of Kalgoorlie and covers an area of over 300 km2. The Utopia project has been joint ventured to Sipa Gold Ltd (Sipa). The main points of the joint venture are: Sipa may earn a 70% interest in Exploration Licences E28/1494, E28/1495, E28/1657 and E28/1412 by exploration expenditure of $1.25 million within 5 years. On earning a 70/30 joint venture is formed with Sipa as manager; Sipa commits to $100,000 of exploration expenditure in year one and may withdraw at any time later, providing tenements are kept pro-rata in good standing.

Jilbadji Project ELA77/1182, WA (100% Comet)

An 80 km² exploration licence has been applied for to cover the Jilbadji Project area, located approximately 50 kilometres southeast of Marvel Loch on the south eastern margin of the Parker Dome. Regional and detailed aeromagnetic data suggests that an ultramafic unit with 20 kilometres of strike length lies below recent cover in the project area. The ultramafic unit is interpreted to be the northern extension of the Forrestania ultramafic belt where numerous nickel sulphide deposits as well as recent exploration discoveries, such as those by Western Areas, are located. Literature research indicates that only minor surface exploration has been conducted within this project area for gold and nickel.

Environmental Oil Solutions

During the year work has continued though research at Flinders University. The research has been supported by a grant from the South Australian Government, through the Science Technology and Innovation Directorate of the Department of Further Education, Employment, Science and Technology. The full amount of this grant has now been received and the company is exploring avenues for commercial development grants. Work has focused on the development and trialling of micro-organisms isolated during research, which have been shown to significantly enhance the degradation and remediation of oil wastes. The Project continues to work closely with industry groups to deliver commercially attractive solutions to operational and environmental issues.

Mine For

gold, iron ore, nickel

Location of operation(s)

Western Austalia, New South Wales

Address

Unit 2, 23 Belgravia St
BELMONT, WA, AUSTRALIA

Phone

(61 8) 9475 7100

Email

Website

http://www.cometres.com.au/

Last Updated

18/04/2011