Global Energy Metals’ to launch major surveys at Lovelock next week (GEMC)

Cobalt explorer Global Energy Metals (TSX-V:GEMC) further advanced its Nevada-based projects on Wednesday by revealing airborne geophysical and topographical surveys over potential areas of mineralisation.  The firm will use uncrewed aerial vehicles to conduct a UAV-Magnetometer Survey and Orthophoto/Digital Surface Modelling on its Lovelock asset, which based c.150km east of Tesla’s Gigafactory in Sparks.

The surveys are expected to begin next week will cover high priority targets at the asset, which is a past-producing mine with high nickel, copper, and cobalt grades. Work will be completed by MWH Geo-Surveys International, an industry-leader with surveying experience all around the world. The data collected will then be used to inform ongoing fieldwork that is becoming carried out for the planning of a drilling programme later this year.

Global Energy’s chief executive and director Mitchell Smith said: ‘We look forward to conducting these airborne geophysical and topographical surveys with MWH, industry pioneers in drone technology. The robust preliminary results of the initial geological work completed this summer are positive indicators of the potential of the nickel, copper, cobalt project. Moreover, large portions of the mineralized area are still being evaluated by the Company leaving the door open to well-defined drill targets for our Fall Program.’

Wednesday’s news comes just days after Global Energy said it was ‘more confident than ever’ in Lovelock as a result of promising early results in its first round of exploration work at the asset. The firm is currently focused on defining structural controls in Lovelock’s known battery metal-rich areas and connecting mineralised zones into broader targets.

The business said that all of its work programmes for the project are progressing on schedule. Notably, a bulk sample taken by its partner Canada Cobalt Works has now undergone initial metallurgical analysis. This has resulted in head assay results of 0.2pc cobalt, 0.19pc nickel, and 2.84pc copper from the waste rock in the historic dumps in front of Lovelock’s opening.

Elsewhere, Global Energy provided investors with an update on its underground prospecting, mapping, and sampling programme at Lovelock, which it launched at the end of June. The firm said that initial results from the work, which will assist in creating a 3D geological model of the property, have been positive.

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.

The company entered an option to acquire an 85pc stake in the asset in January alongside another site called Treasure Box. This 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.

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. Global Energy recently revealed plans to take the project forward alongside Australian peer Cobalt Blue Holdings.

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 the 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.

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

Global Energy Metals ‘more confident than ever’ in Nevada cobalt project as work continues (GEMC)

Global Energy Metals (TSX-V:GEMC) has said it is ‘more confident than ever’ in its Lovelock cobalt mine as it continues to complete its first round of exploration work at the asset.

The firm is currently focused on defining structural controls in Lovelock’s known battery metal-rich areas and connecting mineralised zones into broader targets ahead of an inaugural drilling programme in Q4 2019. This will enable it to reinterpret historic data at the project, which is located near Tesla’s Gigafactory in Nevada, and provide a better understand of its cobalt, nickel, and copper potential.

In an update on Thursday, the business said that all of its work programmes for the project are progressing on schedule. Notably, a bulk sample taken by its partner Canada Cobalt Works has now undergone initial metallurgical analysis. This has resulted in head assay results of 0.2pc cobalt, 0.19pc nickel, and 2.84pc copper from the waste rock in the historic dumps in front of Lovelock’s opening.

Canada Cobalt Works has sent a sample for mineralogy testing and results will be used to understand better the minerals that are hosting the metals. All this information will assist with Canada Cobalt Works’ Re-2ox process, which can create a potential battery-grade test product from cobalt-nickel-copper-bearing mineralised material.

Elsewhere, Global Energy provided investors with an update on its underground prospecting, mapping, and sampling programme at Lovelock, which it launched at the end of June. The firm said that initial results from the work, which will assist in creating a 3D geological model of the property, have been positive.

‘Particular attention was paid to the main fault of the North Adit however additional underground workings have been discovered, adding to the extensive underground development,’ it added. ‘Interestingly, the South Adit appears to be on the same structural zone as the main fault at the Lovelock Mine and the workings follow two subparallel fault systems with some anomalous nickel, cobalt and is copper mineralization. The company believes that the geochemical results are promising, and the structural observations from underground will be valuable when integrated with future survey results.

Based on observations from the work, recommendations for follow-up efforts include mapping and sampling surrounding surface rocks and combining collective findings with geophysical data to determine drill targets.

‘Management is more confident than ever that the Lovelock Mine is a superb value creation opportunity for shareholders,’ added Global Energy.

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.

The business entered an option to acquire an 85pc stake in the asset in January alongside another site called Treasure Box. This 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.

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. Global Energy recently revealed plans to take the project forward alongside Australian peer Cobalt Blue Holdings.

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.

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

Glencore halts production at world’s largest cobalt mine – where will prices go next?

Glencore (LSE:GLEN) has confirmed plans to halt production at the world’s largest cobalt mine, potentially wiping out one-fifth of the world’s global supply of the critical battery metal. In a gloomy set of half-year results on Wednesday that saw it reveal a 90pc fall in net income, the major miner said it expects to transition its Mutanda mine in the DRC into temporary care and maintenance by year-end.

Its decision reflects Mutanda’s ‘reduced economic viability’ in the face of rising regulatory costs in the DRC at the hands of a harsh new mining code and a significant fall in cobalt prices. After quadrupling in two years, cobalt prices have sunk to their lowest level since 2016 as producers have flooded the market with new supplies. Indeed, Glencore itself has reported a $350m non-cash loss from cobalt that it has mined but not been able to sell.

As well as 199,000ts of copper, Mutanda produced more than 27,000ts of cobalt last year, making it one of the world’s largest sources of the metal – responsible for around 20pc of global supply.  Like many businesses operating in the sector, Glencore and its investors had hoped to ride the boom in electric vehicles (EVs), many of which are powered by batteries containing significant amounts of cobalt.

The world’s fleet of EVs grew by 54pc to about 3.1m in 2017 and is expected to hit 125m by 2030, according to the IEA. JP Morgan forecasts that EVs will account for 30pc of all global vehicle sales 2025 – this compares to 1pc in 2016. As such, the market for cobalt 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.

With this in mind, Glencore’s decision to cut supply at a time of low prices has been interpreted by some as a way of placing a floor under the flagging market and turn it around by eradicating its existing surplus. This would not be the first time the business has implemented such a tactic. As Bloomberg reports, the business slashed zinc production in late 2015 when prices were plunging in a bid to manufacture supply shortages. The metal responded with a 60pc price surge in 2016.

As such, Glencore’s move has breathed life into many cobalt businesses, with shares in major Chinese cobalt companies rallying on Wednesday. Mitchell Smith, president of Global Energy Metals (TSX-V:GEMC), a firm developing a diversified portfolio of cobalt assets in stable jurisdictions, also noted the significance of Glencore’s decision to shutter Mutanda.

‘The shuttering of Glencore’s Mutanda Mine in the DRC in combination with the limited production numbers from the business’s Kamoto Copper Company drastically changes the supply outlook for cobalt in light of increased demand pressure from the automotive industry’s quest to go electric,’ he said. ‘Cobalt should definitely be on investor’s radar as mining companies in the Central African Copper-Cobalt belt begin to retaliate against the new mining code and push back to relax the significant taxation rates. It should be interesting to see how the price of cobalt reacts and where investors turn to get exposure to the critical mineral.’

Wednesday’s boost to the cobalt market comes around a month after British scientists 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 alone. 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.

Many believe that cobalt’s bear-run could soon come to an end.  For example, a recent report from FocusEconomics suggests that cobalt prices will hit $40,000 by mid-2020, before adding another $10,000 in 2021. As International Banker highlights, this bullish sentiment is being put down to a boost in global EV sales volumes.

Likewise, Roskill Information Services has said: ‘With demand across most major end-use applications set to increase, and with demand from the battery sector expected to enjoy double-digit growth over the coming decade, the market is gearing itself up for a sustained period of unprecedented consumption growth.’

Should EV uptake and cobalt demand continue to increase and supply constraints become more apparent, then it will be of significant benefit to businesses like Global Energy with exposure to the metal beyond the DRC.

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

 

 

As support for electric vehicles continues to grow, are cobalt prices approaching a turnaround?

Electric vehicles received a vote of confidence earlier this week when the London Electric Vehicle Company (LEVC) said taxi operators in the City had saved £3.5m in fuel costs since it rolled out its electric cab last year.

The LEVC, which is a wholly-owned subsidiary of Geely Motors, has sold 2,500 of its taxis to date, with 2,000 operating in London and the rest spanning the remainder of the UK. The firm claims that the vehicles have collectively prevented 6,800ts of carbon dioxide from entering the atmosphere, according to trade paper Business Green, as well as saving around 850,000 litres of diesel fuel.

This latest display of the economic and environmental benefits of EVs adds to an existing arsenal of evidence supporting the gradual uptake of the vehicles across the world. The world’s fleet of EVs grew by 54pc to about 3.1m in 2017 and is expected to hit 125m by 2030, according to the IEA. Likewise, JP Morgan forecasts that EVs will account for 30pc of all global vehicle sales 2025 – this compares to 1pc in 2016.

The majority of these EVs are expected to use different variations of what are known as Li-ion batteries, formed from the combination of lithium compounds with other materials. Among these other materials is cobalt, which is contained within around three-quarters of cells. As such, 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 continuation of this long-term trend, cobalt prices have slumped recently, with the metal losing around 70pc of its value since March 2018. The metal currently sits at c.$26,000/t. This has been driven by numerous factors, including a slightly slower-than-expected uptake of EVs, a rush to mine as much cobalt as possible, and a change in subsidies in China - responsible for half of global EV sales.

However, the price has arguably been most depressed by a large amount of new supply coming online from the DRC, a politically unstable nation whose mining sector is fraught with human rights issues. The cobalt market’s current reliance on the country for supply became clear in November when prices soared after Glencore abruptly halted sales of the metal from the country after discovering uranium at its key mine.

These supply constraints were highlighted once again earlier this year 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 alone. 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.

Many believe that cobalt’s bear-run could soon come to an end. For example, a recent report from FocusEconomics suggests that cobalt prices will hit $40,000 by mid-2020, before adding another $10,000 in 2021. As International Banker highlights, this bullish sentiment is being put down to a boost in global EV sales volumes.

Likewise, Roskill Information Services adds: ‘With demand across most major end-use applications set to increase, and with demand from the battery sector expected to enjoy double-digit growth over the coming decade, the market is gearing itself up for a sustained period of unprecedented consumption growth.’

Should EV uptake and cobalt demand continue to increase and supply constraints become more apparent, then it will be of significant benefit to businesses with exposure to the metal in nations other than the DRC.

One such example is Global Energy Metals (TSX-V:GEMC), 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. Global Energy recently revealed plans to take the project forward alongside Australian peer Cobalt Blue Holdings.

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.

The firm 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.

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

Global Energy lays down plans to take key Millennium cobalt project forward (GEMC)

Wednesday saw Global Energy Metals (TSXV:GEMC) reveal plans to investigate the cobalt, copper, and gold recovery potential of its Millennium project in Queensland, Australia. The Canadian cobalt business, which announced plans to co-list in London earlier this year, has entered into a memorandum of understanding (MoU) with its Australian peer Cobalt Blue Holdings.

Cobalt Blue has been developing minerals processing technology for the extraction and recovery of cobalt and elemental sulphur from cobalt-pyrite feedstocks. The process avoids explicitly the simultaneous production of sulphuric acid, which usually occurs when roasting pyrite, or leaching pyrite through pressure oxidation. Its technology was successfully shown to be technically and economically viable last year following the completion of a pre-feasibility study for the Thackaringa deposits near Broken Hill. Together, Cobalt Blue and Global Energy plan to prepare new cobalt-pyrite samples from Millenium and test the applicability of the former’s process to the concentrates.

Mitchell Smith, CEO and director at Global Energy– which recently revealed its outright acquisition of Millennium – said he is confident that the program can demonstrate a viable way of taking the project forward. Indeed, historical studies have shown that cobalt and copper concentrates can be floated from samples of drill core at the project. What’s more, Cobalt Blue has already begun to apply its technology to tailings from Cuedco’s Rocklands project, which is based just 20km from Millennium.

‘It is invaluable to conduct metallurgical testwork on this resource at this stage in its development and further de-risk the project while looking at various processing options for the company as it continues to grow the existing resource and delineate new targets at Millennium,’ added Smith. ‘Given the encouraging results of previous metallurgical tests with high recovery rates for copper, cobalt and gold we are confident that the results from this program can demonstrate a potentially viable option for the project.’

Specifically, the two businesses have proposed an initial review of both historical testwork to produce concentrates and cobalt-pyrite quantity, grade, mineralogy and other physical characteristics at Millennium. They then plan to create cobaltpyrite concentrate samples, conduct laboratory-scale ‘proof-of-concept’ testwork, and prepare a short-form report summarising their findings.

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.

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.

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