Global Energy extends Nevada position as its gears up for major cobalt exploration programme (GEMC)

Global Energy Metals (TSX-V:GEMC) continued its US push on Thursday with the news that it has bolstered its position at the cobalt-prospective Lovelock property near Tesla’s Gigafactory in Nevada. The Canadian cobalt developer, which announced plans to co-list in London earlier this year, has staked 11 new claims adjoining its 70 existing project claims at Lovelock. The new applications sit to the north of the historic mineshaft cover c.75 hectares, increasing Lovelock’s total size to 642 hectares within 81 mineral claims.

Global Energy entered an option to acquire an 85pc interest in Lovelock, alongside an additional nearby asset called Treasure Box, in January this year. The two sites are based around 150km east of Tesla’s major battery factory in Sparks.

Lovelock 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, sits 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.

Last month saw Global Energy reveal that fieldwork and sample results demonstrated the potential to identify high-grade cobalt, nickel and copper mineralisation over broader areas than initially believed at the two sites. The business is currently compiling historical data and formulating plans for exploration work to advance the battery minerals projects. On Thursday, Global Energy’s chief executive Mitchell Smith said the firm wanted to ensure its land position covered additional prospective areas contiguous to current holdings as it gears up for this exploration work.

‘We are especially excited to have strengthened this land position after recent sampling from the newly staked area extended the potential for additional cobalt, nickel and copper mineralisation around the historically producing mine,’ he added.

The Lovelock expansion follows a busy period for Global Energy in Nevada. In May, the company secured the right to use a major new hydrometallurgical process that it expects to accelerate the development of Lovelock and Treasure Box. The business 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 its 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.

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

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

 

MiningMaven report: Thor Mining’s Mick Billing on how his firm’s exposure to new copper vehicle EnviroCopper could represent a ‘fascinating opportunity’ for investors (THR)

Against a backdrop of steady progress in its tungsten and molybdenum interests, this year has seen Thor Mining (LSE:THR) introduce radical changes to its copper strategy. Alongside its partner Environmental Copper Recovery, the company has agreed to transfer its stake in the Kapunda copper project into a business called EnviroCopper.

The new vehicle will focus on using a non-invasive production technique called in-situ recovery (ISR) to recover copper – an approach currently being utilised by few firms globally. As well as Kapunda, the deal gives Thor exposure to Moonta, a highly-mineralised, large Australian copper project featuring numerous historically-mined deposits alongside more recent discoveries.

In this report, Thor’s executive chairman Mick Billing explains ISR’s potential benefits before running through progress at Kapunda and Moonta and EnviroCopper’s plans for both assets. Importantly, he also highlights how the terms of the EnviroCopper deal and Thor’s heightened copper exposure could provide a ‘game-changing’ opportunity for the organisation and its investors. Indeed, as he puts it in the report:

‘With recent technical advances, ISR can now offer a lower footprint and is likely to find further application in mineral recovery fields because it can coexist with other land use activities. This is a very exciting development in Thor’s copper strategy, potentially adding significant scale to our copper interests by bringing Moonta together with our existing interest in Kapunda within a potentially-large ISR-focussed copper business.’

CLICK HERE TO DOWNLOAD the full report from MiningMaven.com

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

ECR Minerals ramps up sample testing at Creswick to confirm the extend of its gold nuggetty distribution (ECR)

On Wednesday, ECR Minerals (LSE:ECR) announced details of a follow-on gold nugget test programme at its Creswick project. The precious metals exploration and development firm reported the presence of a nuggetty gold system at the deposit in May, highlighting the significance of the find. The company drilled 17 holes at Creswick within the Dimocks Main Shale extracting a 30kg bag of samples. As per industry practices, a 2kg sample was assayed, but ECR explains that assay sample results could be understated as was demonstrated in the test. The assay from the 2 kg sample reported gold of 1.88g/t whereas the 30kg sample test showed the bag actually contained a substantially higher 11.8g/t of gold.

The company’s technical team has taken advice from laboratories and has devised a plan to systematically test zones in and around 640 sample bags of around 30kg each. Bags will be initially prioritised for further analysis using metal detection and whole bags positively identifying metal content will be tested fully. This will provide a much more reliable sample size to determine the extent of gold nugget distribution across the target area.

This much more extensive laboratory analysis will include a number of steps such as sieving, detecting, gold particle analysis, testing gravity concentration and assaying to determine the size distribution and grade of the coarse and fine gold within each sample.

The firm believes the Dimocks Main Shale is large enough to potentially host a multi-million-ounce gold deposit at Creswick and as such has chosen to prioritise its resources to the project. ECR has said it will provide updates to the market as testing progresses, and will continue to develop its other gold projects in parallel with Creswick.

 Craig Brown, Chief Executive Officer commented: “I am extremely pleased with the professionalism of the Company’s technical team in devising the structured approach to bag testing that has been developed. Creswick is a unique project and the assessment of in-situ gold mineralisation requires bespoke project management and technical application.

I am delighted that our first metal detecting of bags has already highlighted metal content, which we expect is reflective of nugget gold mineralisation as samples from depth are unlikely to contain other detectable metals.

Our internal modelling suggests the Dimocks Main Shale is large enough to potentially host a multi-million ounce gold deposit at Creswick and therefore ECR are allocating resources to this project in a prioritised manner whilst continuing to develop our other Australian gold projects in parallel.”

Author: Stuart Langelaan

The Author does not hold a 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, 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. 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.

African Battery Metals says it is ‘extremely well positioned’ for recovery in annual results (ABM)

African Battery Metals (LSE:ABM) sat at 0.4p today after reporting that it is ‘extremely well positioned’ for a strong recovery in the natural resources sector.

In its results for the year ended 31 March 2019, the organisation revealed a loss of £0.32m, an improvement on the £0.79m loss it incurred in 2018.  It also reported that period-end net assets of £3m up from £2m on 30 September 2018.

In its update, African Battery’s executive chairman Paul Johnson highlighted that the results period cover little of the time the firm has spent under his and chairman Andrew Bell leadership. The pair replaced African Battery’s former management team in February as part of a restructuring and refinancing exercise. This saw the company raise £1m to support it in the clearance of creditors through a combination of discounted cash and share settlement payments.

Shortly after joining, the pair launched a strategic and operational review that has continued into the new annual results period. As part of a review of African Battery’s existing portfolio, the firm committed to continuing with the existing Kisinka copper-cobalt project in the DRC. A termite mound sampling programme covering the entire licence commenced in April, and a 7km copper anomaly was announced earlier this month.

Meanwhile, Johnson and Bell have also committed to continuing with African Battery’s Cameroon cobalt-nickel project interests in the ground near to the substantial Nkamouna deposit. A pitting and sampling programme to test how similar the firm’s land is to the Nkamouna geology is currently underway. Finally, a review of the business’s Ivory Coast opportunity is continuing.

Elsewhere, African Battery announced an option with Katoro Gold plc (LON:KAT) earlier this year to acquire up to a 35pc stake in its Haneti Nickel Project alongside the purchase of 10m ordinary shares in Katoro itself. After a period of due diligence, the company exercised this option in May.

Following this, African Battery announce an acquisition and earn-in agreement with Kalahari Key Mineral Exploration, a private company in Botswana, last month. The organisation has acquired an initial 18pc of Kalahari Key’s issued share capital. However, it also has an option in 2019 to earn-in to a 40pc direct project interest by supporting expenditure in respect of a 4-hole drilling programme. This will focus on targets derived from extensive airborne electromagnetic and ground geophysical surveys and related exploration.

Moving forward, Johnson said African Battery is continuing a review of various additional opportunities in a pipeline that is ‘bursting with potentially exciting natural resource projects’.

‘Despite the challenges in late 2018, ABM is now, in the opinion of the board, extremely well positioned for what we expect will be a strong natural resource sector recovery, particularly in respect of battery and electrification metals and storage metals,’ he added.

‘Notwithstanding the cleaning up of the outstanding creditors following the refinancing in February 2019, relaunching exploration programmes across two of our main projects, and acquiring new business interests we remain in a robust financial position.

‘The company's corporate cash costs are carefully monitored and controlled.  The ompany's operational costs are controlled and with modest with low cost programmes being undertaken, generally where the potential upside from positive exploration may be dramatic.

‘The company will be continuing to provide regular updates with regard to its corporate and operational activities over the coming weeks and months.  ABM will also release this month an update of the ongoing strategic and operational review, to provide an in-depth analysis of the business, its corporate strategy and how the individual operational activities will be undertaken to drive the company forward.’

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

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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.

 

Thor Mining reveals substantial metallurgical testwork progress at Pilot Mountain (THR)

Thor Mining’s (LSE:THR) Pilot Mountain project in Nevada was thrust back into the spotlight on Monday after the firm revealed positive results from project drill samples including potentially economic levels of gold. Thor, which currently sits at 0.78p, conducted locked-cycle metallurgical testwork on 600kg of drill core grading 0.265pc tungsten trioxide from Pilot Mountain’s Desert Scheelite deposit. The work produced a scheelite concentrate considered saleable at a recovery of 73.57pc assaying over 68pc tungsten trioxide.

What’s more, the tailings produced from the testwork contained potentially economic levels of gold assayed at 0.33g/t along with other tungsten minerals not usually recovered using flotation. Thor will investigate whether these minerals, which include wolframite, have the potential for subsequent recovery.

Pilot Mountain is based 250km south-east of Reno and contains tungsten, copper, zinc, and silver skarn-style mineralisation at four primary locations. These are the Desert Scheelite, Garnet, Gunmetal, and Good Hope deposit. After extensive historical drilling, work by Thor has delivered JORC resources on two deposits. All-in-all, the asset boasts an inferred and indicated resource of 12.53Mt for 34,290ts titanium trioxide, 16,000ts copper, 207ts silver, and 40,300ts zinc.

A scoping study completed in September last year projected project life of mine EBITDA of $125m for Desert Scheelite alongside $30-35m of project capex, and a project payback period of 30 months. When Garnet and process enhancements are factored in, the project has a life of mine EBITDA of $202-370m, with the same capex and a shortened 12-18-month payback period.

On Monday, Thor’s executive chairman Mick Billing called the metallurgical results a ‘significant step forward’ for the business at Pilot Mountain: ‘The locked cycle testwork has demonstrated production of a high grade scheelite concentrate with good recoveries. We are following up the gold potential via extraction of sample pulps from previous testwork which will be re-assayed for gold. Significant potential exists for further enhancements to this work which may improve project economic outcomes.  Tungsten remains classified as a critical mineral in the USA, with no domestic tungsten production’.

Elsewhere, Billing said Thor continues to have a principal focus on securing off-take and finance agreements for its flagship Molyhil tungsten-molybdenum deposit in the Northern Territory of Australia. Molyhil is located 220 kilometres north-east of Alice Springs as the crow flies within the prospective polymetallic province of the Proterozoic Eastern Arunta Block.  Thor completed an updated Definitive Feasibility Study (DFS) for the project back in August and is now focused on securing project finance to bring Molyhil into production.

The firm has been in advanced discussions with several potential partners regarding potential off-take, joint venture and debt financing arrangements.  The DFS suggests project capex will be around $51m with a payback period of just 18 months from first production.

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