Cobalt consumers were served another stark reminder of the need for more significant amounts of secure metal supply last month following a fatal mine collapse and a warning from UK scientists on diminishing reserves.
At least 19 illegal miners were killed at a copper and cobalt mine operated by Katanga, a subsidiary of Glencore in the DRC (Democratic Republic of Congo) last Thursday. Despite dipping 5pc, Glencore said the incident at the mine, which is frequented by around 2,000 unauthorised artisanal miners daily, will have no impact on Katanga’s forecast 24,000ts of copper production this year.
However, the news serves as a grim reminder of the issues associated with the cobalt sector’s over-reliance on the DRC, one of the poorest and most politically unstable nations in the world. Companies with operations in the DRC are currently facing challenges in the areas of environment, health and safety, and human rights when cobalt is extracted through artisanal mining. This dangerous practice makes up around 15-20pc of Congolese cobalt production. There are also concerns around the use of child labour in the nation, while the cost of doing business has also increased thanks to a recent mining code change that saw royalty costs shoot up to 10pc.
With around 60pc of the world’s cobalt currently being sourced from the nation, such issues can have a significant impact on both prices and supply. For example, prices soared last October after Glencore abruptly halted sales of the metal from the country after discovering uranium at its key mine.
In response to the DRC’s ongoing volatility, leading car maker BMW even revealed plans in April to stop buying cobalt for its electric vehicles (EVs) from the Democratic Republic of Congo (DRC) in 2020/21. If more carmakers were to follow BMW in cutting off their ties to DRC’s cobalt market, then it raises the question of where supply is going to come from – especially if EV demand explodes as predicted.
This issue was highlighted once again last month by British scientists who warned that if EVs replace the UK’s 31.5m cars by 2050, as per government plans, it will require twice the current annual global cobalt supply. In a letter to the country’s Committee on Climate Change, the team of scientists said replacing the vehicles will require 207,900ts of cobalt as well as 264,600ts of lithium carbonate and 2,362,500s of copper.
Encouragingly, the last months have seen developed nations such as the US launch renewed efforts to increase domestic cobalt supply. For example, in May, US Senator Lisa Murkowski announced plans to introduce a Minerals Security act alongside fellow senator Joe Manchin. The bill would support the development of cobalt, lithium, graphite and other electric-vehicle supply chain minerals mines in the US. Meanwhile, last month saw US President Donald Trump and Canadian Prime Minister Justin Trudeau announce plans to develop a plan for US-Canada collaboration on critical minerals such as cobalt.
An ongoing move away from the DRC against a backdrop of growing cobalt demand and political recognition creates a strong backdrop for junior miners with cobalt assets in stable jurisdictions. One such example is Global Energy Metals (TSX-V:GEMC | OTC:GBLEF), which is currently preparing to build upon its strong UK shareholder base by co-listing in London. The firm is developing a diversified global portfolio of cobalt assets, including project stakes, projects and other supply sources.
The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia, where it just recently announced the acquisition of 100pc of it along with two prospective cobalt-copper assets making it one of the largest cobalt focused explorers in Queensland by land size. It is also developing two Nevada-based battery metal sites called the Lovelock Cobalt Mine and the Treasure Box Project. These are located just 150km east of Tesla’s Gigafactory. Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada.
On last month’s developments, the company’s chief executive and director Mitchell Smith said: ‘It is tragic to learn of the deaths of so many artisanal miners in the DRC. Unfortunately, this tragedy highlights the delicate reality that nearly twelve million Congolese rely on artisanal mining as a way to find the means to escape poverty. Approximately a third of the cobalt supplied in 2018 was as a result of artisanal mining, some of which was done illegally, emphasising the need to establish responsible mining initiatives and support from all levels of the supply chain and governments. It also sets in motion the need for a diversified supply chain to break the nearly monopolistic supply of cobalt production from a fragile and unstable jurisdiction. Core to this is the need for capital investment and funding to allow for companies to advance projects in safe, top-tier mining jurisdictions like Global Energy Metals has in Australia, Canada and Nevada, that can supply critical metals, including cobalt, to feel the growing demands brought on by the electric vehicle and energy storage revolution underway.’
Author: Daniel Flynn
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has been paid to produce this piece by the company or companies mentioned above.
Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.
MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance
Canadian cobalt developer Global Energy Metals (TSX:GEMC) announced that it has made its first option payment towards acquiring two cobalt projects near Tesla’s Gigafactory in Nevada on Tuesday.
The business, which announced plans to co-list in London in February, has issued 384,627 of its shares to Nevada Sunrise and paid $20,000 to the underlying vendor. This forms the first part of its agreement with Nevada Sunrise to acquire an 85pc interest in the Lovelock cobalt mine, under-explored for its high-grade cobalt-nickel-copper potential, and the adjacent Treasure Box project.
Lovelock covers an area of around 1,400 acres and is said to have produced 500ts of cobalt and nickel mineralisation between 1883 and 1890, when it was last in operation. Global Energy believes exploration work and modern drilling techniques could unlock a large amount of potential value at the site.
The properties are located in Churchill County, around 150km east of the Tesla Gigafactory in Sparks, Nevada. Speaking to MiningMaven last month, Global Energy’s chief executive Mitchell Smith said the acquisition represents a low-cost entry to an exciting jurisdiction that is in close proximity to the world’s largest battery factory:
‘Some of the grades at these sites are exceptional. Historically, grades were reported as high as 14-15pc cobalt, which is just unheard of. It shows there is a real opportunity in this significant land package covering two past producing mines. Given our proximity to Tesla, this could really provide us with unique access to the growing demand for domestic cobalt supply in the US.’
In Tuesday’s update, Global Energy added that it is also reviewing exploration plans for both Lovelock and Treasure Box. It said this programme will assist it with an ongoing, extensive review and reinterpretation of historic data at both sites.
“There has been a tremendous amount of attention placed on the US for it to stop being merely a bystander in the global battery arms race and start developing more domestic supplies of battery metals such as cobalt, nickel and copper to supply its homegrown battery factories, including Nevada-based Gigafactory 1,’ said Smith. ‘The Lovelock and Treasure Box projects are prime examples of US based battery metal projects that are very prospective and strategically located in close proximity to a domestic end-user with a large appetite for the critical materials used in EV and energy storage technology.’
Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.
The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November.
Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.
The growth-stage site contains a defined zone of cobalt-copper mineralisation. Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits.
Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.
Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge. These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.
Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada. It joint venture partner Marquee Resources is enjoying much success in its ongoing exploration campaign at the asset.
Author: Daniel Flynn
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.
Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.
MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance
Last week saw Canadian cobalt developer Global Energy Metals (TSX-V:GEMC) announce that it is planning to build upon its strong UK shareholder base by co-listing in London. The firm has a portfolio of pure-play projects in safe mining regions and plans to address and profit from supply constraints in the cobalt market driven by demand, geopolitical risk and secondary mining.
Global Energy’s decision to list in the UK will give British investors seeking exposure to the forecast electric vehicle boom an opportunity to back a new, unique prospect with a dedicated focus on a critical battery metal. Here, CEO Mitchell Smith tells us how the company plans to use its strong foothold in Australia’s Mt. Isa region, Canada’s Kenora Mining District and in Nevada, America to develop into a major player.
Growing demand
Global Energy Metals has been established to provide investors with exposure to cobalt, an essential battery metal that is expected to benefit from a widely-predicted surge in the use of electric vehicles around the world.
Given that around three-quarters of electric vehicle batteries currently contain cobalt, the market for the metal is expected to double over the next four years alone and quadruple by 2028. To express this another way, 62pc of global cobalt demand is likely to come from battery manufacturers by 2020, up from 51pc in 2016 and 20pc in 2006.
Despite the strong potential presented by cobalt, Smith says there are still very few companies operating as a pure play on the metal. As it stands, 98pc of the world’s cobalt arises as a by-product of mining for other metals.
This has led supply to take a significant hit in recent years as traditional miners have scaled back production amid harsh market conditions.
By acquiring and developing high-quality primary cobalt assets, Smith believes Global Energy can help to reduce cobalt’s reliance on other metals and support its supply:
‘Miners across the majority of the world have never really gone out and looked for cobalt specifically. It has always been looked at as a by-product of copper and nickel production. We are looking at our portfolio strictly as a collection of pure-play cobalt opportunities. It is rare that a company exploring and developing cobalt-focused projects identify deposit types where the copper or nickel represents the by-credit on a valuation metric. By building a company that has a solid foundation in this key strategic metal we have created a unique investment opportunity for shareholders.’
Global Energy also plans to address the market’s heavy reliance on the Democratic Republic of the Congo (DRC). Following decades of internal conflict, civil wars, and failing infrastructure, the DRC has emerged as one of the most geopolitically unstable regions in the world. With the country currently housing around 60pc of all cobalt resources, these issues have repeatedly impacted global supply over the years.
Compounding this, the DRC’s problems appear to have now extended into the operational realm. Miners are grappling with a fall in cobalt prices and the introduction of a new mining code in the DRC that raises the percentage of royalties they have to pay to the government. This has called into question where new supply will come from if not from byproduct production in the African copper-belt.
By focusing on projects in established, mining-friendly jurisdictions like Australia and North America, Smith believes Global Energy can reduce the historically high levels of volatility in the cobalt market:
‘The recent supply disruptions in the DRC has illustrated how the whole cobalt production chain can be really shaken if you take away even a small amount of supply and highlights the need for supply diversification. In Australia, we are located in very safe, politically sound jurisdictions with very skilled workforces in place. Meanwhile, the US government has recently acknowledged its support for cobalt by highlighting it as a strategic critical metal. Establishing operations in these stable areas is key to clearing up the serious volatility in the cobalt market stemming from the DRC’s instability.’
Millennium opportunity
Global Energy’s flagship interest is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. The growth-stage exploration cobalt site is located near established mining, transport, and processing infrastructure and has easy access to a very skilled workforce.
Millennium contains a defined zone of cobalt-copper mineralisation where a 2016 JORC Resource estimate identified 3.14MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits using a 1.0pc copper cut-off. Global believes that it can immediately enhance the economics of the resource by updating the estimate using today’s improved cobalt prices.
What’s more, it is reviewing studies to increase the size of Millennium’s deposit. For example, recent mapping, soil geochemistry and rock sampling identified 1.5km of untested cobalt-copper mineralisation along a potential strike extension from the defined zone.
A map of the Millennium project’s location within the Mt Isa region
Global Energy’s first involvement in Millennium came in 2017 when it agreed to acquire 75pc of the project from a firm called Hammer Metals in exchange for funding $2.5m worth of work commitments. Following a successful first round of work, the business decided to accelerate its involvement in the project in June last year by entering into an agreement for the exclusive right to purchase a 100pc interest in the project.
The company agreed to issue 19.9pc of its share capital to pay for this additional stake and Hammer’s CEO Alexander Hewlett has joined its board to provide operational and technical support. This deal closed in January and is pending Exchange approval in a move that Smith believes to have established Global Energy ‘as a cobalt leader in one of the world’s best mining jurisdictions.’
Global Energy is now preparing for a second phase of drilling on the northern and southern portions of the Millennium deposit to expand and upgrade the current resource. Smith told us he is highly optimistic about the value this work will add:
‘Moving forward, we believe that through expansion drilling we can significantly increase the resource size at Millennium both at strike and depth. This is something we will look to do in the first half of this year as well as carrying out additional assessments on the project to better understand its metrics and economics.’
An image showing the scale of the Millennium project’s zone of mineralisation
As part of the Millennium deal, Global Energy has also acquired two further Mt. Isa properties called Mt. Dorothy and Cobalt Ridge.
The sites, which expand the firm’s Australian land position by nearly twenty times, have yet to be exploited. However, exploration to date has returned high-grade cobalt intercepts at both. To follow this up, Global Energy has already lined up numerous targets for further investigation as well as test work to define a resource.
Although the two sites are at a very early stage, Smith tells us their inclusion takes Global Energy’s Mt. Isa position into another league:
‘Obviously, the Millennium alters the capitalisation of the company because we are issuing shares to Hammer Metals. However, with these two resources turning the acquisition into a district-scale exploration opportunity, we think it will end up being highly accretive for shareholders. We are very excited to see how these sites develop and look forward to updating shareholders.’
Proximity play
Moving away from Australia, last month saw Global Energy agree to acquire an 85pc stake in two Nevada-based cobalt sites called the Lovelock Cobalt Mine and the Treasure Box Project.
Lovelock covers an area of around 1,400 acres and is said to have produced 500ts of cobalt and nickel mineralisation between 1883 and 1890 when it was last in operation. Global Energy believes exploration work and modern drilling techniques could unlock a large amount of potential value at the site.
Aside from providing Global Energy with permitted, drill-ready locations in a well-established jurisdiction with historically high cobalt grades, the sites are also located just 150km east of Tesla’s Gigafactory. Smith emphasizes that the acquisition was a low-cost entry to an exciting jurisdiction that is in close proximity to the world’s largest battery factory:
‘Some of the grades at these sites are exceptional. Historically, grades were reported as high as 14-15pc cobalt, which is just unheard of. It shows there is a real opportunity in this significant land package covering two past producing mines. Given our proximity to Tesla, this could really provide us with unique access to the growing demand for domestic cobalt supply in the US.’
Lovelock and Treasure Box location map
Global Energy’s final interest is a legacy asset called the Werner Lake Cobalt Mine in Ontario, Canada. This operated as a high-grade source of cobalt in the 1940s and was taken back to mine decision in the late 1990s.
To allow it to focus on Australia and the US, Global Energy has teamed up with Australian miner Marquee Resources to advance the project. Marquee is in the process of sole-funding a $2.5m exploration and development work programme in exchange for a 70pc interest in the pit.
Last month, Global Energy said Marquee’s work over 2018 had confirmed the extent and continuity of high-grade cobalt mineralisation at Werner. It added that it has also extended the limits of mineralization defined by the current mineral resource model.
Support network
Aside from its broad portfolio of assets in mining friendly jurisdictions, Global Energy has established a partnership with leading battery manufacturing firm Beijing Eastspring Technology Material. The two business jointly invest in and develop cobalt projects. It has also appointed a company called New Tiger Consulting to seek additional investors and material supply partners in Mainland China, Hong Kong, and Taiwan.
Global Energy is also backed by a management team with decades of experience in the niche cobalt and battery metals sectors.
Having held senior roles in the resource sector in the past, Smith has experience in negotiating off-take agreements for cobalt material and building relationships with Chinese battery manufacturer intermediaries. Meanwhile, CFO Luis Hadic has more than a decade of accounting experience in various resources sectors while directors Erin Campbell, Peter Reynolds, Paul Sarjeant and Gaston Reymenants have senior expertise with specialist mining companies.
Smith says he and the board pride themselves on being some of the first people to recognise cobalt’s potential:
‘As a management team have been involved in the cobalt space for over a decade. I think it rare for a group of people to have collectively realised the importance of cobalt being a niche under-exposed metal with serious supply constraints and opportunity within the demand side. I think the market is really starting to wake up to the criticality of cobalt in batteries and the growing electrification of vehicles and we will benefit from being early adopters.’
Global Energy’s belief in cobalt’s prospect is backed up its management team’s considerable ‘skin in the game’, with insiders currently owning 20pc of shares. Institutional investors own a further 10pc.
Meanwhile, Smith tells us the firm has decided to co-list in the UK’s NEX exchange in response to considerable demand among British investors:
‘Over the course of 2017 and 2018 the company has seen great demand to undertake a UK listing and given that we already have a strong UK presence through UK investors participating in previous financings we are excited to commence trading in the country. This listing will ensure that UK investors, both existing and prospective, have the ability to invest in GEMC through a domestic exchange. In conjunction with this listing, we have engaged the services of respected communications providers including Mining Maven to enhance our reach within the British-investing community.’
Global Energy has enlisted Peterhouse Capital to act as lead adviser and manager of the proposed listing process. It expects to provide additional updates on timings with respect to listing in the near future.
Unique opportunity
With a broad portfolio of projects in safe jurisdictions and cash available to progress them, Global Energy is well positioned to make a real difference in a cobalt market suffering from severe supply constraints. Shareholders can expect a steady stream of updates from all of the company’s projects over the coming year. With its pure focus on the cobalt market, Global Energy will provide both its UK-based and globally-situated investors with a unique way of playing the forecast boom in electric vehicles.
Author: Daniel Flynn
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.
Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.
MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance
Cobalt developer Global Energy Metals (TSXV:GEMC) has revealed plans to pursue a dual-listing in London. The Toronto-listed business said it expects the listing to support its large existing UK shareholder base and enhance its market exposure by providing access to British investors on a domestic exchange.
In an update on Thursday, Global Energy said it has been discussing a dual-listing of its securities on a ‘recognised investment exchange in London’ for many months now. It has hired Peterhouse Capital to act as it lead adviser and manager throughout the process.
Global Energy’s chief executive and director Mitchell Smith said the timing for a UK co-listing is currently ‘ideal’ because it will complement the recent progress made by the company across its portfolio.
‘A UK co-listing will allow European investors to participate in the increased demand for battery minerals brought on by the aggressive growth and continued global adoption of electric vehicles that our cobalt projects in safe, stable, top-tier mining jurisdictions offer,’ Smith added.
As Smith highlights, the last few months have seen Global Energy take significant steps forward at several of its critical assets. Critically, last November saw the business execute final agreements to take a 100pc interest in the Millennium Project, located in the world-renowned Mt. Isa region of Queensland, Australia.
The growth-stage site is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It contains a defined zone of mineralisation where a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. Global Energy is now looking at ways to increase the size of this deposit.
As part of the Millennium deal, Global Energy has also acquired two additional, unexploited Mt.Isa discovery sites called Mt. Dorothy and Cobalt Ridge. It has lined up numerous targets at the projects for investigation and test work to define a resource.
Beyond Millennium, last month saw Global Energy secure an option to take an 85pc position in two highly prospective cobalt projects in Nevada. The Lovelock cobalt mine and Treasure Box project in Churchill County are based just c.150km east of Tesla’s Gigafactory. Finally, the business owns 70pc of the Werner Lake cobalt mine in Ontario Canada where partner Marquee Resources is currently completing an exploration campaign.
Elsewhere on Thursday, Global Energy announced the resignation of its VP projects Paul Sarjeant, who leaves to pursue a leadership position within the resource sector. He will remain a member of Global Energy’s board.
‘I would like to take this opportunity to thank Paul for his hard work and commitment having played a critical role in the building and growing of Global Energy Metals into what it is today,’ said Smith. ‘On behalf of the Board and the Management of GEMC I would like to wish Paul all the very best in his new role and appreciate his continued support of our company as director and a qualified person.’
Author: Daniel Flynn
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.
Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.
MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance
Toronto-listed Global Energy Metals (TSXC:GEMC) has reached an agreement to acquire two cobalt projects based just c.150km east of Tesla’s Gigafactory in Nevada. The firm now has the option to take an 85pc position in the highly prospective Lovelock cobalt mine and Treasure Box project in Churchill County. The transaction with local firm Nevada Sunrise is now subject to the acceptance of the TSX Venture Exchange.
The final terms of the deal have changed since the signing of a letter of intent back in September. For example, Global Energy was originally due to take an 80pc position in the projects rather than 85pc. Furthermore, required exploration payments have been cut considerably from $2.5m to $1m. Global Energy must meet this obligation within three years of its option being exercised.
To acquire its stakes, Global Energy must issue $200,000 worth of its shares to Nevada Sunrise. These will be priced at the greater of $0.15 or the volume weighted average of the closing price of Global Energy’s shares for the 20 trading days immediately before executing the option. Global Energy will also have to make a $75,000 cash payment and several additional share transfers to Nevada at predetermined dates over the next two years.
The two projects produced a limited amount of high-grade cobalt, nickel and copper in the 1880s. According to Global Energy, the average grades of a 200-tonne shipment in 1886 came in at an impressive 14pc cobalt and 12pc nickel. However, the projects and their surrounding areas are yet to be thoroughly explored using modern drilling techniques.
Churchill County hosts excellent infrastructure and several copper-gold projects. It also shows strong enrichment in cobalt, nickel and copper. Global Energy said this makes the region very attractive for further exploration and expansion through other attractive growth opportunities. The business has already identified eight diamond drill targets and has carried out geological mapping, chip and channel sampling, and geophysics.
Lovelock and Treasure Box location map
Speaking to Mining Maven, Global Energy’s chief executive said he was ‘happy to report’ that the firm has secured the definitive agreement.
‘I am also excited to reveal that we were able to secure better terms and a slightly larger stake than originally drafted in our letter of intent,’ he added. ‘The acquisition of the Nevada cobalt projects is another significant milestone for GEMC. This transaction exposes the Company and its shareholders to a wealth of exploration opportunities in another top-tier mining district with proven mineral endowment. GEMC believes that the sizeable property package it has locked up in the heart of a very prolific and proven district, hosts the potential for significant cobalt exploration upside.’
Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.
The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November.
Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.
The growth-stage site contains a defined zone of cobalt-copper mineralisation. Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits.
Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.
Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge. These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.
Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada. It joint venture partner Marquee Resources is enjoying much success in its ongoing exploration campaign at the asset.
Author: Daniel Flynn
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece. Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece. Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above. MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance
Toronto-listed cobalt developer Global Energy Metals (TSXC:GEMC) has revealed further success in the final stage of a drilling program at its part-owned Werner Lake project in Canada.
Yesterday saw the business report that Marquee Resources, its joint venture partner, has received assay results for four final drill holes at the cobalt asset in Ontario. The holes intersected high-grade mineralisation within and beyond the constraints of the project’s current mineral resource model.
One hole called WL18-14 was drilled to test the extension of Werner Lake’s West Mine Zone. It encountered thin intervals of 2-5pc sulphides as well as narrower sections with up to 10pc combined sulphides across two sections.
Another hole called WL18-17 was drilled to test the down plunge mineralisation associated with the project’s West Cobalt Zone. It successfully cut several zones of the targeted mixed unit, which contained narrow zones with up to 10-15pc combined sulphides. This is the deepest hole drilled to date at Werner Lake and indicates that the target horizon continues to depth.
Werner Lake operated as a high-grade source of cobalt in the 1940s and was taken back to mine decision in the late 1990s. It represents a legacy asset for Global Energy, which teamed up with Marquee to advance the project so it could increase its focus on its projects in Australia and the US.
Global Energy said yesterday’s results confirm the potential for significant exploration upside beyond the site’s existing resource. The four holes represent the final stage of 2018 drilling program at Werner Lake, where Global Energy currently owns a 70pc position.
The program is being led by Marquee as part of its $2.5m commitment to advance the project and earn-in to a 70pc stake. It is designed to confirm high-grade cobalt mineralisation intersected in previous diamond drilling programs. It is also expected to provide additional structural and geotechnical data for ongoing project development studies.
Speaking to MiningMaven, Global Energy’s chief executive Mitchell Smith said the program has successfully delivered a better understanding of the project:
‘The results confirm or exceed model expectations and, to date, drilling has not yet established a bottom to the system that remains open along strike, laterally, and at depth. This openness represents exciting growth potential, and these new opportunities will be a focus for future programmes.’
The company’s VP projects Paul Sarjeant added: ‘We are confident that these objectives have been achieved and in addition, we have been able to identify new areas of mineralisation that open the deposit along strike and at depth. We look forward to additional drilling on the property continuing to grow the Werner Lake resource.’
In yesterday’s update, Global Energy said it expects the results of the programme to have a project on the next mineral resource estimate update at Werner Lake. This is due to complete in early H1 2019.
Global Energy Metals focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of cobalt assets, including project stakes, projects and other supply sources, to achieve this.
The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November.
Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length, as defined by previous drilling, prospecting and geophysics. It is located near established mining, transport, and processing infrastructure and has easy access to a very skilled workforce.
The growth-stage site contains a defined zone of cobalt-copper mineralisation where a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. However, Global Energy is looking at ways to increase the size of its deposit, with results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeding grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.
As well as taking Millennium over from previous owner Hammer Metals, the Canadian battery metals player has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge, collectively known as the ‘Mt. Isa projects’. The areas, which expand Global Energy’s Australian land position by nearly twenty times, have yet to be exploited. However, exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.
Global Energy has also signed a letter of intent to acquire an 80pc stake in two Nevada-based cobalt sites called the Lovelock Cobalt Mine and the Treasure Box Project for $200,000. The sites are located just 150km east of Tesla’s Gigafactory.
Author: Daniel Flynn
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Global Energy Metals (TSXV:GEMC | OTCQB:GBLEF | FRA:5GE1) has completed executing the final agreements to take a 100pc interest in the Millennium Cobalt project in Mt. Isa, establishing it as a leading battery metal player in the world-renowned region of Queensland, Australia.
Mitchell Smith, president and chief executive of Global Energy, said: ‘This combination of Millennium and the discovery-stage Mt. Isa projects creates one of the largest and most exciting exploration cobalt packages in Australia. With this acquisition, we continue to consolidate multi-million tonne cobalt assets and maximise cobalt leverage as investment exposure to the growing battery and EV markets for our shareholders.’
Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length, as defined by previous drilling, prospecting and geophysics. It is located near established mining, transport, and processing infrastructure and has easy access to a very skilled workforce.
The growth-stage site contains a defined zone of cobalt-copper mineralisation where a 2016 JORC Resource estimate
identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. However, Global Energy is looking at ways to increase the size of its deposit, with results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeding grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.
As well as taking Millennium over from previous owner Hammer Metals, the Canadian battery metals player has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge, collectively known as the ‘Mt. Isa projects’. The areas, which expand Global Energy’s Australian land position by nearly twenty times, have yet to be exploited. However, exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.
Global Energy’s first involvement in Millennium came last year when it agreed to acquire 75pc of the project
from Hammer in exchange for funding $2.5m worth of work commitments. Following a successful first round of work, the business decided to accelerate its involvement in the project in June by entering into an agreement for the exclusive right to purchase a 100pc interest. Global Energy will issue 19.9pc of its share capital to pay for this additional stake and Hammer’s CEO Alexander Hewlett will join its board to provide operational and technical support.
The completion of the Millennium acquisition comes just days after Global Energy announced several encouraging intersections from the latest round of drilling at its 70pc-owned Werner Lake project in Ontario, Canada. Five new metallurgical drill holes have been completed by Australian miner Marquee Resources as part of its $2.5m commitment to advance Werner Lake and earn-in to 70pc of the project.
Three of the five holes intersected cobalt while another intersected two zones of copper mineralisation downhole from sulphide cobalt zones. One hole drilled in the West Mine Zone encountered an interval of 7.33m at 0.827pc cobalt, indicating a thickening of an existing sulphide zone. The area will be explored further in the next phase of drilling.
Werner Lake operated as a high-grade source of cobalt in the 1940s and was taken back to mine decision in the late 1990s. It represents a legacy asset for Global Energy, which teamed up with Marquee to advance the project so it could increase its focus on its projects in Australia and grow its portfolio of well established cobalt assets in safe mining jurisdictions globally..
Author: Daniel Flynn
Disclosure: The Author does not own shares in the company mentioned above
Toronto-listed cobalt developer Global Energy Metals (TSXC:GEMC) has announced numerous encouraging intersections from the latest round of drilling at its 70pc-owned Werner Lake project in Ontario, Canada. Five new metallurgical drill holes have been completed by Australian miner Marquee Resources as part of its $2.5m commitment to advance Werner Lake and earn-in to 70pc of the project.
