(TheNewswire)
Vancouver, BC / TheNewswire / September 6, 2018 - Global Energy Metals Corporation TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1 (“Global Energy Metals”, the “Company” and/or "GEMC") is pleased to provide an update on the Millennium Cobalt project (“Millennium” and/or the “Project”) located in Mount Isa, Queensland Australia.
Over the summer, GEMC completed the phase one program at Millennium with a primary focus on infill confirmation drilling to support ongoing resource development. Drill results exceeded expectations and successfully discovered several new mineralised zones. Given the success of this initial program, the Company has approved and commenced the outright acquistion of the project from partner Hammer Metals as announced on June 26, 2018. This accelerated acquisition of cobalt rich assets in a safe, pro-mining jurisdiction positions GEMC as the region’s leading cobalt explorer/developer building a district-scale cobalt opportunity in Queensland Australia’s prolific Mount Isa mining district.
The company is in the process of finalizing the Definitive Agreement and expects to complete on the transaction in the very near future.
A second phase drill program is now being planned and will focus on expanding resources and testing prospective targets located on the project’s known 3 km long mineralised zone.
“Results from exploration at Millennium during the first half of 2018 have demonstrated both the quality of the known resource and the strong potential for a significant increase in tonnage,” said Mitchell Smith, President and CEO of Global Energy Metals Corp.
“The new infill drill holes have demonstrated continuity between the previously reported high-grade cobalt zones with wide zones of cobalt mineralisation near surface and at depth with assay results indicating metal grades exceeding prior expectations. We look forward to completing the 100 percent acquisition along with continued exploration success during the program’s second phase aimed at expanding the resource through the identification of newly discovered mineralized zones.”
To initiate the second phase program at the Project, the Company recently engaged ALS Metallurgy PTY Ltd. (“ALS”) of Balcatta, WA, Australia to perform mineralogical, comminution and metallurgical test work to evaluate the potential recovery of cobalt and copper derived from 1/4 portions of NQ mineralized drill core samples collected from recent drilling at the Millennium Cobalt project located in Mt. Isa, Queensland Australia.
Testing by ALS will be used to support and provide further detail on previously conducted preliminary hydrometallurgical studies that demonstrated the potential for the recovery of saleable cobalt and copper concentrates.
Select highlights are included below and in the Company’s materials available on its website at www.globalenergymetals.com. Please see “Cautionary Statements” for additional information regarding drill results. For a complete table of all drill results at Millennium, please refer to the drill results found in news releases dated June 19, 2018, May 31, 2018, April 30, 2018 and January 17, 2018.
Highlights
The first phase of the 2018 drill program completed ahead of schedule and under budget – Since commencing in December 2017, the Company drilled 10 holes and over 1140 metres.
Results from Millennium’s drilling program received through early July along with the upcoming second phase are expected to support an updated resource model conforming to NI 43-101 standards, expected following the phase two program.
Two zones were tested during the First Phase exploration program – Millenniun North Zone and the Millennium South Zone. Results from both zones exceeded grade and thickness expectations.
Drilling confirms continuity and suggests greater mineralized thicknesses at Millennium South Zone – Prior to the drilling, the modeling was based on limited drill data and depicted zones of mineralization in the Millennium North Zone. However, infill drilling now demonstrates these zones may be part of a thicker, more continuous zone of mineralisation dthat indicates the potential strength and size potential of the Millennium Cobalt deposit.
Significant intercepts from Reverse Circulation drilling in the Millennium South Zone include:
MIRC026:
- 28 metres at 0.20% Co and 0.35% Cu from 104 metres, including 17 metres at 0.26% Co from 115 metres with peak values over a one metre interval of 1.11% Co, 3.8% Cu and 1.42g/t Au.
MIRC025:
- 12 metres at 0.23% Co and 0.27% Cu from 127 metres with peak values over a one metre interval of 0.67% Co, 0.69% Cu and 0.24g/t Au and,
- 13 metres at 0.10% Co, 0.33% Cu and 0.17g/t Au from 91 metres in MIRC025 with peak values over a one metre interval of 0.48% Co, 1.27% Cu and 0.74g/t Au.
Significant Diamond Drilling intercepts in the Millennium North Zone include:
MIDD003:
- 7 metres at 0.15% Co, 0.36% Cu and 0.12g/t Au from 14 metres and
- 2 metres at 0.33% Co, 0.57% Cu and 0.11g/t Au from 19 metres,.
MIDD006:
- 2 metres at 0.64% Co, 0.29% Cu and 0.14g/t Au from 62 metres and,
- 4 metres at 0.23% Co and 0.18% Cu from 69 metres. This is within a thick low-grade envelope of 80 metres at 578ppm Co from 42 metres
MIDD009:
- 7 metres at 0.11% Co and 0.15% Cu from 24 metres and,
- 2 metres at 0.29% Co, 0.67% Cu and 0.24g/t Au from 70 metres.
MIDD010
- 15 metres at 0.22% Co, 0.21% Cu and 0.18g/t Au from 40 metres within a mineralised envelope of 41 metres at 0.18% Co, 0.11g/t Au and 0.23% Cu from 14m. This zone includes a one metre interval of 1.85% Co (40- 41m).
Rock chip sampling was also conducted to test for additional zones of cobalt and copper mineralisation along the Millennium trend and in particular the northern strike extension (“Northern Discovery Zone”) where similar host rock units and strong soil geochemical anomalies are located. This zone is located approximately 1 kilometre north of the current Millennium resource as defined. Results indicate high priority targets for further work to expand the known resource area.
The presence of anomalous cobalt and copper in rock chip samples and analogous geology between the Millennium resource area and the Northern Discovery Extension indicate that this area is a priority target for further investigation.
The Millennium Cobalt Project:
Millennium is a growth stage exploration cobalt project with a large defined zone of cobalt-copper mineralisation which remains open at depth and along strike. Hammer Metals completed a JORC (2012) Resource estimate in late 2016 and reported 3.1 million tonnes of Inferred Resources* grading 0.14% Co, 0.34% Cu and 0.12 g/t Au (using a CuEq cut-off of 1.0%). Under Canadian reporting standards this resource is considered a “historic estimate”. The 2016 JORC (2012) resource estimate completed by Hammer Metals Ltd. outlined a mineralised zone over a strike length of approximately 1.5 km.
Cobalt-copper mineralisation is associated with shear zones hosted within a sequence of volcanic and sedimentary units. Additional mapping, soil geochemistry and rock sampling has identified an additional 1.5 km of anomalous cobalt-copper mineralisation in geological analogues that occur along a potential strike extension in the northern half (“Northern Target”) of the tenement package. This area has not been tested with any drilling to date. The Northern Target provides excellent opportunity to increase the overall resource potential of the Millennium project.
Prior to GEMC’s involvement, the area had been tested by 63 drill holes (percussion, RC and diamond) for a total of 7,891 metres. Most holes have been drilled within 200 metres of surface, with few holes reaching to depths greater than 250 metres below surface. At present mineralisation remains open at depth along the strike extent of the JORC (2012) resource area.
*This work was based on a technical report by Haren Consulting Pty Ltd., issued November 29, 2016 conforming to JORC (2012) reporting standards for resources estimates. As Hammer uses JORC (2012) categories, it should be noted that the confidence in the estimate of JORC (2012) inferred mineral resources is usually not sufficient to allow the results of the application of technical and economic parameters to be used for detailed planning. For this reason, there is no direct link from an inferred resource to inferred resource as defined under NI 43-101. However, the Company deems this resource still relevant because economic parameters have not changed significantly since publication date and the Company has confidence in the estimate based on review of technical data. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the issuer is not treating the historical estimate as current mineral resources or reserves. CuEq% = Cu% +(Co%*5.9) +(Au ppm*0.9) +(Ag ppm*0.01). Price assumptions utilised by Hammer for the JORC (2102) resource estimate and drill hole intercepts are (in USD); Au - $1,300/oz, Ag - $20/oz, Co - $27,000/t and Cu - $4,600/t.
Qualified Person
Mr. Paul Sarjeant, P. Geo., the Company’s VP Projects and Director, is the qualified person for this release as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects and has reviewed and verified the technical information contained herein.
Global Energy Metals Corporation
(TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1)
Global Energy Metals is focused on offering security of supply of cobalt, a critical material to the growing rechargeable battery market, by building a diversified global portfolio of cobalt assets including project stakes, projects and other supply sources. GEMC anticipates growing its business by acquiring project stakes in battery metals related projects with key strategic partners. Global Energy Metals currently owns and is advancing the Werner Lake Cobalt Mine in Ontario, Canada and has entered into an agreement to earn-in to the Millennium Cobalt Project in Mt. Isa, Australia.
For Further Information:
Global Energy Metals Corporation
#1501-128 West Pender Street
Vancouver, BC, V6B 1R8
Email: info@globalenergymetals.com
t. + 1 (604) 688-4219 extensions 236/237
Cautionary Statement on Forward-Looking Information:
Certain information in this release may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with regulatory approvals and timelines. Although Global Energy Metals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change. For more information on Global Energy and the risks and challenges of their businesses, investors should review the filings that are available at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
We seek safe harbour.
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