Thursday saw Global Energy Metals (TSX-V:GEMC) bag the right to use a major new hydrometallurgical process that it expects to accelerate the development of its Lovelock and Treasure Box projects in Nevada. The Canadian cobalt developer has amended the terms of a non-binding MoU with Canada Cobalt Works to secure a binding agreement for the right to use the company’s Re-2OX technology at its sites for one year.
Re-2OX is a proprietary and environmentally green hydrometallurgical process that recovers cobalt, precious metals, and base metals without using a traditional smelter. Canada Cobalt has said that the operation can create battery-grade cobalt sulphate, adding that nickel-manganese-cobalt battery-grade formulations are also in the pipeline.
Global Energy expects Re-2OX to complement a more extensive exploration and drilling program at Lovelock and Treasure Box that will allow for a reinterpretation of historical data. The business believes this will give it a better understanding of its ability to unlock their cobalt, nickel and copper potential.
The firm will pay Canada Cobalt Works $50,000 in cash and issue it with $150,000 worth of its shares to use the technology. The shares will each be priced at $0.075 and come with one 36-month warrant exercisable at $0.10.
Lovelock and Treasure Box are based around 150km east of Tesla’s major battery factory in Sparks. Lovelock covers 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.
Treasure Box, meanwhile, is adjacent to Lovelock and hosts mine workings from limited copper production, which occurred until early into the 20th century. A historical diamond drill hole at the asset reportedly intersected 1.52pc copper over 85ft, with mineralisation beginning at the surface.
Thursday’s update also saw Global Energy reveal that it has made significant progress in its Nevada fieldwork. The organisation recently completed a site visit at Lovelock that saw it take several selective samples from the project. It said that lab results from these samples compare well and reinforce confidence in the historical numbers for battery metals including cobalt, copper, and nickel within the asset.
The company also sent c.100kg of material from the site to SFS Canada as part of its work with Canada Cobalt around the use of the Re-2OX process. Lab findings on the content support the development of an initial work programme at Lovelock that includes additional surveying and sampling. This work will also include an integrated model of the historical workings and geological data from the asset that will be used to extrapolate high-priority targets for future drilling.
Chief executive Mitchell Smith said planning for this work is well underway, adding: ‘The Lovelock property has delivered historical cobalt, nickel and copper production and, more recently, encouraging assay numbers from samples taken during our site visit earlier this month. We are keen to get to work and explore the property-wide potential of this asset and work alongside Canada Cobalt Works in unlocking value through the Re-2OX process.’
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. Its joint venture partner Marquee Resources is enjoying much success in its ongoing exploration campaign at the asset.
Author: Daniel Flynn
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