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.
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 the US.
Marquee, which currently owns a 30pc in the Werner Lake deposit, has now completed 18 holes for 4,800m as part of a two-phase drilling campaign at the site. Phase One primarily focused on narrow-spaced drilling to increase the existing resource, which remains open in all directions. Phase Two attempts to extend mineralisation beneath the current resource area and test potential down dip and down plunge extensions.
Marquee is now waiting for assay results from the final Phase Two drill holes and will send samples to Zhejiang Meidu Haichuang Lithium Battery Technology Co, its potential off-take partner at the project.
Global Energy’s flagship project 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 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits.
More recently, Global Energy has 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.
Mitchell Smith, President & CEO commented: “The results of the metallurgical drilling significantly widened both the mineralised cobalt and copper sulphide zones in a number of targets warranting future assessment. These results follow recent assays that further confirmed the presence of extensive cobalt sulphide mineralisation to depth and down plunge at the Werner Lake deposit. We look forward to seeing the project advanced by our partner Marquee Resources.”
Author: Daniel Flynn
Disclosure: The Author does not own shares in the company mentioned above