Powered by Cobalt … Driven by Demand GLOBAL ENERGY METALS ACQUIRES OPTION FOR THE ADVANCED MILLENNIUM COBALT PROJECT WITH JORC RESOURCE
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GLOBAL ENERGY METALS ACQUIRES OPTION FOR THE
ADVANCED MILLENNIUM COBALT PROJECT WITH JORC
RESOURCE
Vancouver, BC / TheNewswire / September 25, 2017 / Global Energy Metals
Corp. TSXV:GEMC | FSE:5GE1 (“Global Energy Metals”, the “Company”
and/or "GEMC") has acquired an option from Hammer Metals (“Hammer”)
for the Millennium Cobalt-Copper Project (“Millennium” and/or the
“Project”) located in the heart of Mt. Isa, Queensland Australia covering five
separate mining leases with existing JORC (2012) compliant mineral resources
defined by drilling from a 2016 drilling program.
Project Highlights:
• The Project is located close to well established mining, transport and
processing infrastructure along with a skilled workforce in the regional
centres of Mount Isa and Cloncurry.
• Preliminary hydrometallurgical studies have demonstrated the
potential for the recovery of saleable cobalt and copper concentrates.
• Historical estimate* – Hammer completed a JORC (2012) resource
completed in 2016 on the property as disclosed in a press release
dated December 6, 2016 comprised of an Inferred Resource of 3.1
million tonnes @ 0.14% Co, 0.34% Cu and 0.12g/t Au (using CuEq
cutoff of 1.0%).
• Hammer Metals, the project operator, was awarded 2015 ASX
explorer of the year, and is the operating partner with both Newmont
and Glenncore in Australia.
• GEMC continues to execute its strategy of becoming a supplier of non-
DRC cobalt material to downstream partners; Millennium is the first
acquisition to complement its wholly owned Canadian primary cobalt
project.
• Please refer to GEMC’s May 1, 2017 news release for additional details
on the project.
Mitchell Smith, President & CEO commented:
“The option on the Millennium Cobalt project in Australia complements our
existing cobalt footprint in Canada and represents a transformational growth
opportunity for the company and its shareholders. We believe Millennium is
an exceptional opportunity, with significant near-term upside potential in
both project economics and expansion of the existing resources. Hammer is
guided by an established and experienced technical team that has the proven
ability to quickly advance this cobalt project.”
“Hammer is very pleased to have GEMC as a strategic partner to develop
Millennium,” said Hammer’s CEO, Alex Hewlett. “GEMC’s cobalt sector
knowledge and partnerships in Asian battery markets was key to our wanting
to partner with them. This transaction provides our shareholders with
immediate upside in partnering with a cobalt focused player while retaining
exposure to longer term value creation that the Millennium Project will offer."
Millennium is an advanced cobalt project with a large defined area and
remains open for significant expansion. Cobalt-copper mineralisation is
associated with shear zones hosted within a sequence of volcanic and
sedimentary units. The 2016 JORC resource estimate completed by Hammer
outlined a mineralised zone over a strike length of approximately 1.5 km
(Figure 1). 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 of the tenement package (Figure 2) that has not been tested
with any drilling. This additional strike extent provides excellent opportunity
to increase the overall resource potential of the Millennium project.
To date the project area has been tested by only 62 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 resource area.
Proposed Work Program:
GEMC and Hammer are working together in finalizing plans to advance the
Millennium Cobalt project. This initial work program includes:
• Reverse circulation and diamond drilling to upgrade resource
mineralisation and test depth extension,
• Update the resource estimate to CIM standards for NI 43-101
reporting requirements,
• Scoping metallurgical studies and pit optimisations, and
• Significant exploration upside has been identified including several
priority drill ready targets prospective for the discovery of additional
cobalt mineralization in the northern mining lease areas.
Figure 1: Target Zones and Resource area at Millennium
Figure 2: Rock Chip and Soil samples over Millennium Mining Leases
Key Commercial Terms of the Agreement:
Before the third year anniversary of signing a definitive option agreement,
GEMC must expend a minimum of CAD $2,500,000 in project exploration and
development work on Millennium as follows:
• $500,000 within 6 months for 25% interest;
• $1,000,000 within 18 months for 65% cumulative interest; and
• $1,000,000 within 36 months for cumulative 75% interest.
GEMC will also pay to Hammer a total of CAD $200,000 in cash in two equal
payments of $100,000, the first upon signing the definitive agreement and
the second on the 6 month anniversary of the first payment.
Global Energy Metals may exercise its right to acquire additional interest in
Millennium based on future terms agreed to by both parties at that time.
*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 categories, it should be noted that the confidence
in the estimate of JORC 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 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.
Hammer Metals Limited (ASX:HMX)
Hammer Metals holds a strategic tenement position covering approximately
3,100km2 within the Mount Isa mining district, with 100% interests in the
Kalman (Cu-Au-Mo-Re) deposit, the Overlander North and Overlander South
(Cu-Co) deposits, the Millennium (Cu-Co-Au) deposit as well as the recently
acquired Elaine-Dorothy (Cu-Au) deposit. Hammer is an active mineral
explorer, focused on discovering large copper-gold deposits of the Ernest
Henry style and has a range of prospective targets at various stages of testing.
Global Energy Metals Corporation (TSXV:GEMC | 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: [email protected]
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.