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
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