How Kunene's pain became CLA's gain, page-7

In many ways CLA reminds me of FMG back in 2003. The iron ore majors had all looked at the Chichester Ranges where Twiggy pegged his vacant ground, and everyone said it wasn’t worth a bag of rusty nails – and that included the great and the good who went on from BHP and RIO to become FMG bigshots. I’ve spent time in both areas, and Opuwo is very similar to the Chichester Ranges except the Opuwo Country Club is much nicer than Auski Roadhouse.

CLA have 100km strike of stratigraphy which has shown remarkable consistency over 10 or 12km and down to depths of 350m+. The DOF  mineralisation is about 4m thick (true vertical), and has a grade of say 0.12 to 0.15% Co, which some people say is too thin and too low grade. The same was said about FMG’s Chichester deposits. If CLA can emulate in Cobalt what FMG did in iron over 100km you can put a couple of zeros to the right of its current market cap.

FMG got lucky because the iron ore market came and met its iron ore specification, which was at best was medium grade iron. If the iron ore boom hadn’t happened neither would FMG. At the moment, it looks like the Cobalt market is rising to meet various potential low grade deposits. What set FMG aside from other new entrants like Atlas, BCI, Polaris, Murchison, etc, was their 100km strike length gave scalable mining from a couple of major mining centres. So they could invest in fixed infrastructure and put a lot of tonnes through it without moving. CLA can do the same if (and its still an if) they can prove good metallurgy and economics.

There are lots of base metals shows across CLA’s project area, with small-scale artisanal mining but nothing major. While they might look good over 20 metres and they provide nice hand specimens they’re not company-makers. In the same way, FMG ignored base metals on its tenements and solely focused on iron. At this stage there’s no point getting excited about gold, non-DOF copper, lead, etc, and taking the eyes off the prize which is DOF-hosted Cobalt.