New Energy Metals Acquires Additional Cobalt Project IN Chile
#2300 – 1177 West Hastings Street, Vancouver, BC, Canada, V6E 2K3
Phone: 604-484-1232 / Fax: 604-408-7499
NEW ENERGY METALS ACQUIRES
ADDITIONAL COBALT PROJECT IN CHILE
NR18-09 May 29, 2018
Vancouver, B.C., May 29, 2018 – “New Energy Metals Corp.” (“New Energy Metals” or the
“Company”) (TSX.V:ENRG) announces that it has entered into an option agreement (the “Cobalt
Agreement”) to acquire a 100% interest in a sixth cobalt exploration project (the “Project”) located
within Chile’s past-producing San Juan cobalt district.
New Energy Metal’s President and Chief Executive Officer, Grant Ewing, said “The new cobalt
project adds to our growing land position in Chile’s past produ cing San Juan (Cobaltera) district.
We view the potential for the discovery of primary cobalt proje cts in the district as high based on
historical records, and the fact that only very limited exploration has been conducted in the district
since cobalt production ceased in the mid 1940’s.”
Cobalt Projects Highlights
The past producing San Juan cobalt district in Chile is currently active due to strong interest in the
cobalt market. New Energy Metals has been aggressive with its acquisition strategy to obtain a
strategic property position in the district.
The Company now has option agreements on six cobalt projects in the San Juan cobalt district
(refer to news releases dated April 4 th and 11th, 2018). All the Projects were acquired based on a
review of available regional and district-scale datasets in the San Juan cobalt district and selected
based on geological characteristi cs, abundance of historic work ings, evidence of mineralization,
and proximity to past production. Indications of historic work ings exist on the Projects, which
occur on the same regional trend and near the past producing Cobaltera mine.
Access is via secondary roads approximately 25km south of the p ort of Huasco, Chile.
Infrastructure is good, and the district is approximately 10km from tidewater.
The Company has commenced an exploration field program comprised of compilation of historical
data, regional mapping and prospecting, and sampling to identify priority areas for detailed follow
up work.
About San Juan Cobalt District
In November 2017, Chile’s Corporation for the Promotion of Prod uction (“CORFO”) and the
Chilean National Service of Geo logy and Mining (SERNAGEOMIN) pu blished a report that
reviewed the cobalt mineral resources in Chile. Meaningful pri mary cobalt production has
historically been developed in two districts in Chile, one of which is the San Juan cobalt district in
the Atacama Region.
NR18-09 Continued 2 May 29, 2018
The San Juan cobalt district incl udes several historical produc ing mines, which produced cobalt
(and copper) for several decades at the turn of the 20th centur y. The past-producing Cobaltera
Mine was the last to close in the mid-1940’s at the end of the Second World War. At the peak of
production there were three processing plants in the area and several small-scale operations.
Cobalt production and smelting in the district started in 1885 but no statistics are available prior
to 1903. From 1903 to 1944 the district produced approximately 300,000 tonnes of cobalt ore
grading up to 4% cobalt (plus copper) (“El Cobalto en Chile, Ca ja Credito Minero”, H.
Hornkohl,1944).
Mineralization in the district o ccurs in high-grade veins and m antos, with average cobalt grades
reportedly up to 1.6% cobalt for primary mineralization, and up to 6.4% cobalt in the enriched
secondary oxidized zones. Vein thickness varies greatly from 0.5m to 20m. Shafts over 100m in
depth exist on some of the vein structures. The cobalt mineral ization is associated with copper
mineralization and is noted to be structurally controlled and c losely associated with the large
regional northeast trending Atacama fault system. In the oxidiz ed zone (up to 40m thick) cobalt
occurs as erythrite, a cobalt arsenate. In the deeper primary z one the mineral cobaltite, a cobalt
sulfo-arsenide mineral, is the main cobalt mineral.
Summary of Cobalt Agreement
Under the terms of the Cobalt Agreement, the Company can earn a 100% interest in the Victoria
project through the following cash and share payments:
Date US$ Cash Shares
On signing: US$300,000 300,000 shares
September 2018 US$400,000 400,000 shares
March 2019 US$400,000 400,000 shares
March 2020 US$500,000 500,000 shares
March 2021 US$500,000 500,000 shares
March 2022 US$500,000 500,000 shares
Total US$2.6M 2.6M shares
The project is not subject to underlying royalties. During the option period, the Company will be
responsible for maintaining the concessions comprising the proj ect in good standing. There are
no work commitments and all work carried out on the projects will be at the sole discretion of the
Company.
The Cobalt Agreement is subject to the approval of the TSX Venture Exchange.
About the Company
New Energy Metals’ principal project is the Cristal copper project located in northern Chile. The
Company has also acquired several prospective cobalt projects in Chile’s past producing San Juan
cobalt district. The recent name change to “ New Energy Metals Corp .” reflects the Company’s
corporate strategy of exploration and development of energy metals in Chile.
NR18-09 Continued 3 May 29, 2018
Qualified Person
Mr. Grant Ewing, P.Geo., is a qualified person as defined by Na tional Instrument 43-101. Mr.
Ewing and has reviewed the scientific and technical information that forms the basis of this news
release and has approved the disclosure herein. Mr. Ewing is not independent of the Company.
On behalf of New Energy Metals Corp.
Grant Ewing, President & CEO
T: 604.484.1232
W: www.newenergymetals.ca
Neither the TSX Venture Exchange nor its Regulation Services Pr ovider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking Statements
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information
contained herein. This News Release includes certain “forward- looking statements”. Other than statements of
historical fact, all statements included in this release, including, without limitation, statements regarding future plans
and objectives of New Energy Metal s Corp., are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such s tatements. Important factors that could cause actual
results to differ materially from New Energy Metal’s expectations are the risks detailed herein and from time to time
in the filings made by New Energy Metals Corp. with securities regulators. Those filings can be found on the Internet
at http://www.sedar.com.