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
Disclosure: The Author does not own shares in the company mentioned above