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
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