Meteoric Resources adds Canadian cobalt project
Junior explorer Meteoric Resources (ASX:MEI) hasentered into an agreement to acquire 100% of the Gillies Cobalt Project inOntario, Canada.
The project consists of 11 contiguous claim blockswithin the prolific Cobalt Camp mining district. It's located on the samegeological trend, and within just 2.5 kilometres, of numerous historicalhigh-grade cobalt and silver mines.
Nearby projects include the Cobalt A-53 mine, theSilver mining company mine (produced 2,251 lbs of cobalt), the Provincial mine (34,473lbs cobalt & 287 lbs silver), and the Waldina silver mines shaft (2,066 lbscobalt). The Gillies township alone has produced more than 60,000 pounds ofcobalt and over 33 million ounces of silver making up a significant proportionof the production from the prolific Cobalt Camp.
Recent grab samples at the Gillies Cobalt Projectyielded high-grade cobalt assays up to 1.6% cobalt.
Get the latest articles straight to your inboxkeep me postedAtthe same time, it's worth noting that this is an early stage play and investorsshould seek professional financial advice if considering this company for theirportfolio.
Cobalt mineralisation within the Gillies Claims ishosted within the Nippising Diabase which outcrops in the western portion ofthe property, where it dips east beneath sedimentary sequences belonging to theCobalt Group.
Idealised diagram depicting contact-relatedmineralisation within the cobalt embayment:
In the Cobalt Camp, considerable cobalt-silvermineralisation typically is encountered in the diabase sill below the contactwith Cobalt Group sediments. Historically between 80-90% of the cobalt oreswere extracted from the Huronian conglomerates that are in contact with thediabase intrusion.
The Gillies Project hosts both the lower and upper sillcontacts, with both contact zones having the potential to host cobalt andsilver mineralisation. Most historic workings in the area targeted the uppercontact of the diabase, leaving the lower contact zone relativelyunderexplored.
The area's prospectivity, and potential to hostsignificant cobalt mineralisation given the considerable exposed lengths of theupper and lower contact zones, are encouraging. There are numerous surfacecobalt-silver showings that are associated with two major northerly- andnorthwesterly-trending faults.
MEI's exploration plans
The company plans to resample the extensive historicworkings with the major focus being on primary cobalt mineralisation.
Prospect scale mapping and surface sampling, as well asa detailed geophysical survey (Induced Polarisation, Magnetics &Radiometrics) is planned for as soon as the weather allows.
MEI will also conduct additional trenching to determine the extent of thepreviously exploited veins and is hoping to produce a bulk sample for analysisalong with preliminary metallurgical test work.
The company also plans to fast track its systematic and rigorousexploration approach with an extensive programme of prospect scale mapping,surface sampling and geophysics, and resample the numerous outcrops and openpit operations.
The terms of the deal
The considerationfor the acquisition comprises:
- Aninitial payment of C$50,000 and C$50,000 in MEI shares (at the 10-day VWAPprior to completion), and a 2% net smelter royalty.
- Threeadditional payments of C$30,000, on the first, second and third anniversariesof completion of the acquisition.
- C$30,000in MEI Shares (at the 10-day VWAP prior to each anniversary).
- Introductionfees of C$5,000 and 1,000,000 MEI Shares.
Theacquisition of the exploration rights over the Gillies Limit project claims isconditional upon MEI completing due diligence and receiving regulatoryapproval, while the company may terminate the agreement at any time.
MEI MD Dr Andrew Tunks said: "The Gillies Cobalt Project is an excitingaddition to Meteoric's already impressive portfolio of primary cobalt projectsin Ontario, Canada. The new look management team at Meteoric continues todemonstrate an active approach to acquiring highly-prospective primary cobaltprojects in this case within a few kilometres of the town of Cobalt. A similarapproach is set to continue with on-ground exploration activities, where weexpect to commence work at Mulligan and Mulligan East in April."
Get the latest articles straight to your inboxkeep me posted