Thor Mining: is EnviroCopper closing in on more than half a million tonnes of copper at Moonta? (THR)

EnviroCopper is a privately run mining company, which is seeking to develop the Kapunda and Moonta copper projects using an extraction method call “in situ- recovery” (“ISR”). Thor Mining Plc (LSE:THR) has the right to purchase a 30pc stake in EnviroCopper, which is pioneering the application of ISR in copper mining operations in Australia. ISR is a highly cost effective and environmentally more friendly extraction method compared to traditional mining.

EnviroCopper is earning into 75pc of two ISR projects in Australia, at Kapunda and Moonta. Across these two projects EnviroCopper now has a managed resourced inventory of 233,000 tonnes of copper; 119,000 tonnes at Kapunda and now, following August’s maiden resource estimate, 114,000 tonnes at Moonta.

In this special MiningMaven Wire we provide analysis of the maiden copper resource estimate at Moonta and provide some more contextual background about other global ISR copper projects that could provide indicators as to how EnviroCopper might develop.

 

The latest Moonta report can be read by accessing the download page HERE.

 

This MiningMaven Wire also provides an update to the main EnviroCopper report published in June 2019, following release of the initial mineral resource estimate at Moonta in August 2019. The full report can be read HERE.

EnviroCopper – Harnessing the vast opportunity presented by low-cost copper production

EnviroCopper is a copper exploration, development, and production business formed in March 2019 to focus on stranded copper projects previously considered too low-grade for development. Thor Mining (LSE:THR) has the right to earn in to up to 30% of the company, while the remainder is held by two businesses called Environmental Copper Recovery and Environmental Metals Recovery.

With copper prices at multi-year lows, EnviroCopper’s innovative, low-cost, and low-impact approach to copper extraction has never looked more relevant. As the firm’s work to build up production and expand its portfolio continues, Thor’s exposure could provide shareholders with a highly-significant opportunity for returns.

Low-impact recovery

EnviroCopper plans to approach assets using a low-environmental impact style of metal production called in-situ recovery (ISR). Unlike conventional mining operations, ISR centres around a chemical process called ‘leaching’, that – in layman’s terms – involves dissolving minerals underground in a solution before extracting them at the surface. As ISR is much cheaper and quicker than actually building a copper mine, EnviroCopper believes that the technique can bring lower-grade projects into economic territory.

A video from Excelsior Mining explaining the ISR process in detail

Although it is well established in phosphate and uranium mining, ISR’s introduction to the copper sector has been relatively recent. Indeed, as it stands, two of the only examples of the method’s application in this way are the Gunnison and Florence copper projects in Arizona, operated by Excelsior Mining and Taseko respectively. However, EnviroCopper sees a bright future for the technique and plans to spearhead its growth.

Proof of concept

EnviroCopper’s initial focus will be its 75pc-owned Kapunda project, which is found around 90km north-west of Adelaide in Australia. By achieving production at the asset, the firm hopes to demonstrate ISR’s operational viability in the copper market and take the technology to other projects.

Aided by historical mining data and environmental and hydrogeological work, EnviroCopper has estimated Kapunda contains an ISR-amenable inferred copper resource of 119,000ts. As announced in April, the company has also been able to recover gold from samples taken from the project and work to ascertain whether it can establish a resource for the precious metal is ongoing.

Before commercialisation, EnviroCopper must complete a pre-feasibility study and a definitive feasibility study at Kapunda.  It will also have to meet any necessary environmental, social, and regulatory requirements and secure financing.  Handily, it will a $2.8m government-issued research grant will support it in these efforts- indeed, the firm expects these funds to take the project through to demonstration of feasibility.

Bigger picture

Once progress has been made at Kapunda, EnviroCopper will move on to Moonta - its second 75pc-held project. Moonta is located around 160km north-east of Adelaide within the historical copper triangle of South Australia, where around 300,000ts of copper were mined and processed between the 1860s and 1920s.

Although it is an earlier-stage project than Kapunda, Moonta is also thought to be a much larger opportunity. In August 2019, EnviroCopper announced an initial inferred resource estimate for the asset of 66.1MMts grading 0.17pc copper. This translates to 114,000ts of contained copper considered amenable to ISR, taking EnviroCopper’s business-wide managed resource inventory 233,000ts. However, this initial figure was formed from the analysis of just 164 drill holes at Moonta. This lead to the identification of three copper deposits, called Wombat, Bruce, and Larwood. A further 308 holes already drilled over these deposits will feature in future resource modelling once quality assurance has been completed, providing an obvious opportunity for upside. What’s more, all three deposits remain open along strike or at depth – providing EnviroCopper with a chance to identify mineralisation beyond that already discovered.

Location of EnviroCopper’s ISR-amenable copper projects (Source: Thor Mining)

Perfect conditions

If EnviroCopper can prove ISR’s operational viability in the copper arena, then it hopes to introduce the technique at projects far beyond Kapunda and Moonta. Indeed, the firm has said that it aims to develop an expanded portfolio of opportunities, initially focusing solely on South Australia but potentially moving into other territories in the future.

The company has also said it plans to list on a recognised exchange, potential providing interested market participants with a way of getting exposure beyond a Thor investment in the future.

With copper prices currently sitting at two-year lows, the need for low-cost supply is particularly stark – especially given the forecast explosion in demand over coming years thanks to the rise of electric vehicles.  ISR potentially provides an ideal solution to this scenario – for context, all-in production costs per pound of cathode copper at Gunnison and Florence come in at just $1.23 and $1.10 respectively.

The potential presented by EnviroCopper and its assets, then, is clear – especially if the business can use its first-mover advantage in Australia to drive the sector’s growth. Importantly, Thor’s considerable stake in the company both diversifies its potential revenue streams and provides shareholders with yet another, significant upside opportunity. Indeed, in June 2019, executive chairman Mick Billing told MiningMaven, that the value of the firm’s copper exposure could even surpass that of its more established tungsten and molybdenum operations.

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

 

Andrew Bell on the major upside potential at Red Rock Resources currently being undervalued by the market (RRR)

Like many of its peers in the commodities space, Red Rock Resources (LSE:RRR) has endured a tough 12 months, with a widespread, macro-driven sector downturn pushing its shares from 0.82p to their current 0.5p. However, unlike many of its contemporaries, the £3.4m firm has managed to generate enough revenues over this period to cover its operating costs- thanks largely to its valuable position in manganese producer Jupiter Mines. With Red Rock now looking to build on its solid foundation with major developments at its direct project stakes in the DRC and Kenya, we caught up with CEO Andrew Bell to hear where he thinks shares could go next.

Manganese opportunity

One of Red Rock’s most critical holdings is its long-standing c.1pc stake in Jupiter Mines, a manganese producer that re-listed in Australia last April in an A$240m IPO. Jupiter’s flagship asset is its 49.9pc-held Tshipi Borwa open-pit manganese mine in South Africa’s Kalahari Basin, which entered production in early 2013. Since then, the mine – one of the largest of its kind in the world with a 432Mt resource base - has more than doubled its production and export volumes to over 3Mt of manganese ore annually.

The project currently boasts a maximum capacity of 3.6Mt per annum and a 100-year life of mine – both with the potential for expansion. As well as being one of the only manganese mines in the market, Tshipi also boasts some of the lowest operating costs in its space at a current average of $2.18 per dry metric tonne.

Operations at Tshipi (Source: Company)

Alongside Jupiter’s robust portfolio, the A$744m business offers Red Rock a reliable revenue stream owing to its progressive payout policy. Indeed, Red Rock received income from dividends and share sales totalling A$1.47m for Jupiter’s financial year to 28 February 2019. Meanwhile, earlier this month, Red Rock revealed that Jupiter achieved a payout ratio of 90pc in that year, far exceeding its target ratio of 70pc.

Such payouts look set to continue, as well, with the business recently revealing that sales so far in its current financial year are in line with its last 12-month period, with a ‘healthy dividend’ expected in November. The firm has been somewhat boosted recently by a substantial increase in its share price, helped along by the rise in Chinese steel production in combination with an ongoing fall in domestic manganese production.

In an update released earlier this month when Jupiter had risen 71pc since end-2018 to A40.41 a share, Red Rock revealed that its stake was worth over £4.2m – a premium of nearly a third to its own £3.3m valuation. Bell tells us that the combination of value and income offered by Red Rock’s stake in Jupiter, alongside the opportunity for liquidity, make it something of an insurance policy for the company.

‘The high yields we get from Jupiter are sufficient to cover our overheads, and the value of our stake more than underpins our own market cap. We also have something that can be converted into cash if necessary, meaning we are protected from running out of money – something essential for AIM companies,’ he says. ‘When this is combined with a genuinely world-class asset that has excellent management, low costs, and strong performance in place to back it up, it is a pretty difficult call to sell. We are delighted with Jupiter’s performance.’

Bell also believes that Red Rock’s stake in Jupiter is worth holding due to the growing value opportunity he sees in the manganese market. As alluded to, 90pc of the world’s manganese is currently used as an alloying agent to increase both the strength and flexibility of steel. However, Bell believes that the metal will – like many of its peers – soon enjoy a sizeable boost from the electric battery market.

Manganese is cheaper to mine than many metals currently used in the cathodes of electric batteries like nickel and cobalt.  As a result, electronic battery manufacturers are now looking at using more of the metal in their products moving forward. Perhaps most notably, last year saw Reuters report that German chemical giant BASF had revealed plans to ramp up the manganese content in its cathode materials to 70pc and reduce nickel content to 20pc by 2021. It is thought that the move, which prompted a considerable rise in Euro Manganese’s share price, could push costs for battery production down from well over $100 per kilowatt-hour (kWh) to around $40 per kWh.

According to Bell, the benefit of an industry shift towards manganese would be two-fold. Firstly, a substantial increase in manganese demand would push up the price of the metal as supplies run out, and mining companies are forced into higher-cost underground operations to keep stocks topped up.

Secondly, if the metal were to become a stalwart component of all electric batteries, then its exposure to the forecast explosion in electric vehicle (EV) usage would also increase. 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.

This trend has helped many more well-known battery metals like lithium and copper soar in price over recent years. If manganese were to join this group, then Bell believes that Jupiter would be well set to benefit – with the firm claiming that Tshipi alone is responsible for 9pc of the world seaborne market for the metal.

‘Jupiter is a very attractive business over the long term, and my view is that it is currently highly undervalued due to – among other factors - the potential offered by the electric battery market,’ says Bell. ‘As people begin to see that, it might well be that - within a few years- a large company will see it as a strategic acquisition. It wouldn’t be surprising if that happens, and when it does, Red Rock will be very well positioned with its considerable holding.’

DRC upside

Beyond its investment in Jupiter, Red Rock also owns numerous direct project holdings. These include a 50.1pc interest in a DRC-focused joint venture called VUP, which the firm bought in exchange for a $700,000 cash payment and a £490,000 share payment last year.

The JV holds three copper and cobalt prospective exploration licences in the Katanga segment of the Central African Copperbelt, where it is surrounded by active majors like Glencore and FE Limited. The first of these licences is Kamukongo, which covers 5km2 within a structural trend called Kansuki and Kamikongwa – host of some of the most productive high-grade cobalt-copper deposits in the Katanga region. The second is Kasombo South, which lies at the mid-eastern part of the Kasonta anticline where numerous mines have produced considerable volumes of both copper and cobalt in the past.

Red Rock’s licence locations in the DRC (Source: Company)

However, the third and most advanced prospect is Musonoi. Covering part of the ‘Musonoi Super Deposit’, this licence sits in a district called the Kolwezi Klippe that boasts 80 years of mining history and supplies a considerable portion of the globe’s annual cobalt requirements. According to Red Rock, typical grades in the area range from 3-5pc copper and 0.5-1pc cobalt. Perhaps most notably, the region contains Glencore’s Katanga project, which remains the world’s largest cobalt mine despite being due to enter care and maintenance – something that Bell expects to increase cobalt prices.

Musonoi was drilled in the 1930s and 1940s with a cut-off grade of 2.5pc copper. Production took place down to a maximum depth of 105m, and the pit was partially backfilled after production ceased. However, Red Rock believes that high-grade ore, alongside additional orebodies, could remain in place.  Its consultant geologists have provisionally identified deposit potential of up to 400,000ts of contained copper and more than 25,000ts of cobalt at Musonoi based on a review of historical work and reports.

This year has seen the VUP JV begin work to build on this potential, creating 3D models and identifying and assessing the old drill core from previous exploration activity. Bell tells us that this work is the first stage of validating the results of historical drilling, something that will allow the JV to bring the existing non-compliant resource to the modern ‘JORC’ standard. More updates are expected over the coming quarters.

Changing views

As it stands, around two-thirds of the world’s cobalt is mined in the Democratic Republic of Congo. What’s more, the country’s resources don’t appear to be running out any time soon. Indeed, one estimate has valued the nation’s untapped resources of cobalt, copper, diamonds, gold, and other minerals at an impressive $24trn.

In spite of this, the DRC has long been associated with geopolitical uncertainty and human rights issues. Such problems have led many companies to shy away from the country in search of an alternative jurisdiction where they believe they are less likely to face disruption. Bell argues that, while the State does present issues, it is an essential location for a company that claims to operate in the battery metals space to have a footing. Likewise, he adds that – now the country has entered a period of peace following the safe passing of recent elections – historical precedent indicates that it can continue its long-term move towards stability.

‘We do not think you can claim to be in battery metals without being in cobalt or copper as electric vehicles contain significant amounts of both- especially relative to a conventional car. The DRC is a major jurisdiction for both, containing huge prospect with significant grades relative to their cost, so it is really worth approaching from an economic perspective,’ he says.

‘For a long time, the DRC lagged the rest of Africa in terms of development. But there is progress, with a great increase in tertiary education, the introduction of a new mining code, and growth in the number of lawyers. The legal system is not yet perfect, but you can see the progress. All the world has made great strides over the last several decades, and the DRC is not exempt from that. It has just been held back by political issues. In periods of peace, it has been improving. We need to get that message across to investors – what was true 20 years ago is not necessarily true now.’

Value in Kenya

Another critical direct project interest for Red Rock is its 100pc-owned Migori gold project in Kenya. The asset contains an initial 1.2Moz gold resource at 1.3g/t over five areas within its Mikei shear zone, along with significant upside opportunity.  Indeed, it is analogous to producing Tanzanian greenstone gold belts and 30km north of Acacia Mining’s North Mara gold operations. In February last year, Acacia announced that it had found ‘one of the highest-grade gold projects in Africa today’ at the site, reporting a 1.31Moz resource at 12.1g/t.

Location of the Migori gold project (Source: Company)

Back in 2014, Red Rock commissioned a preliminary technical and economic assessment for one part of Migori, constituting the first stage of a feasibility study.

However, shortly afterwards, the ministry of mining in Kenya announced plans to terminate the special licences that had been granted to cover the asset. Red Rock fought this ruling for several years before finally announcing the settlement of legal proceedings in October 2018. The company, alongside its local associate, has now applied for the licences to be regranted- something that Bell expects to occur imminently.

‘We hope that, before long, we will be able to announce that we have the licences back,’ he says. ‘We are at the final stages, and we have four or five teams working on the ground just to get proper mapping and landowners consents in place in preparations. Migori is extremely prospective. The 1.2MMoz is just a starting resource, we are looking at work to increase this and whether we should JV with a bigger company.’

Value opportunity?

Moving on from Red Rock’s portfolio, Bell tells us that the firm is currently generating between $800,000 and $1m a year in revenues – a figure that more than covers operational costs. Bearing this in mind, he argues that the business currently looks undervalued with a current market cap of £3.38m.

‘Firstly, Jupiter is considerably undervalued, and it is still worth about 30pc more than our market cap on its own. Beyond that, if we make progress in Kenya, then the value of that asset on even the most conservative of assumptions is also considerably higher than our market value. Finally, the Congolese assets are potentially powerful. We need to convert those to a JORC resource, but, if we can, it will be truly massive relative to our market cap,’ he says. ‘By coming into our stock now, I think you have three attractive growth assets, the value of which will come over time. Any one of the three alone would make us cheap, but when you put them together, and you assume we are going to keep the company simple and costs down, then many would find it an attractive proposition.’

As Bell states, Red Rock’s three major assets – Migori, its DRC JV, and its position in Jupiter – each present an upside opportunity that outweighs the firm’s current market capitalisation. It is now be down to the firm to deliver on its ambitious plans, with any positive updates potentially presenting the opportunity for a re-rate.

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

 

‘There is a lot of upside to be had here’: Mick Billing on Thor Mining’s recent trip to Bonya and ongoing Molyhil deal discussions (THR)

Earlier this month, Mick Billing, chief executive of Thor Mining (LSE:THR), carried out a site visit to the firm’s tungsten and copper-prospective Bonya tenements. The trip was carried out as part of planning for a drilling programme at Bonya, which is adjacent to Thor’s flagship Molyhil and tungsten and molybdenum project following promising intersection earlier this year.

Against the exciting backdrop of an initial 114,000t copper resource at the Moonta project held within Thor’s EnviroCopper subsidiary, we caught up with Billing to discuss his findings from the trip. The chief executive also provides us with an update on Thor’s ongoing efforts to secure project finance and offtake agreements at Molyhil.

Bonya opportunity

To recap, Thor purchased a 40pc stake in Bonya from Rox Resources last year and is now in a JV with Arafura Resources. The two firms now share development costs proportionally to the size of their holdings. Bonya hosts 13 outcropping tungsten deposits that currently carry an exploration target of 3-4.9MMts at 0.3-05pc tungsten trioxide.  The area also hosts an inferred copper resources of 230,000ts for 4,600ts of copper.  Thor plans to extract and process this copper at Molyhil for a ‘minimal additional cost’.

Location of the Bonya tenements relative to Molyhil (Source: Company)

Despite the licence area being part of a known tungsten province, no tungsten drilling had taken place since the 1970s.  Regardless, in April, Billing said he hoped that Bonya could add ‘considerably’ to Molyhil’s life, scale, and economic outcomes. True to its word, Thor - alongside Arafura - completed an initial 2,500m reverse circulation drilling programme across Bonya earlier this year.

The work confirmed strong tungsten and copper mineralisation across several deposits, with particularly strong results coming from two areas called White Violet and Samarkand. Highlights from White Violet included 27m at 0.29pc tungsten trioxide from 35m, 12m at 0.67pc tungsten trioxide from 46m and 29m at 0.7pc tungsten trioxide from 81m, including 13m at 1.13pc tungsten trioxide.  Meanwhile, top copper intersections at Samarkand included 5m at 0.36pc copper, 12m at 0.77pc copper, and 7m at 1.23pc copper. To read the results in more detail, please click here.

Recent trip

To build on these strong initial results, Thor and Arafura will now target near-term drilling to test the extent of the two deposits and create reportable mineral resource estimates. To support this, Billing says he and his colleagues searched White Violet and Samarkand for surface scheelite – a tungsten compound that shines blue when a UV light is shined on it in the dark – on their recent trip. Billing says the work was high encouraging, further informing and extending the imminent drilling programme and leaving him with the impression that there is a lot of upside to be had in the area.

‘At White Violet we have identified a couple of holes where we drilled last time that we would like to take deeper and another one we would like to move the hole a bit to connect better up with some trenching,’ he said. ‘We are also going to do some infill work because we are really keen on getting a resource estimate out of this deposit in the next drilling programme, which we expect will start in September.’

‘Things were even more encouraging at Samarkand as we have found a couple of quite promising scheelite occurances extending past the area drilled out. We won’t just be going a bit deeper to do resource-type infill work, we will also be extending to the north-west and hopefully also to the south-east. We think there is a good chance we can not only get a resource at Samarkand but also extend the area where the mineralisation is currently known. There is a lot of upside to be had here.’

Outcropping copper just south of Marrakech deposit at Bonya

Funding discussions

Bonya and Molyhil’s prospectivity appears to increase with every related RNS release. Indeed, earlier this week Thor announced that a second metallurgical bulk sample drill hole has further boosted its flagship Molyhil project’s prospectivity for copper alongside tungsten and molybdenum.

Speaking to MiningMaven, Billing told us that he remains confident Thor will be able to lock in project finance and off-take agreements for both tungsten and molybdenum concentrates mined at Molyhil. As previously discussed, the company has been approached by, and advanced discussions with, several players whose interests include offtake agreements, joint venture arrangement, or debt instruments. Billing says such talks are still proceeding, with the business taking great care to ensure it picks the arrangement that works best for both itself and shareholders.

‘There is now quite a large group of companies who would like to offtake from the output at Molyhil. There is a smaller group who are interested in funding and there is another group that have said there is interest in a joint venture,’ he said.  ‘One of the things these potential JV partners will want out of that type of structure is almost certainly an offtake. With this in mine, we are not locking in with any of the others until we have exhausted the opportunity for a JV. These are people that are working at their own pace so I cannot underwrite the success or a timeline. However, we are still confident there is a deal to be done with a couple of the people with which we are in discussions.’

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’ 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