Powered BY Cobalt … Driven BY Demand Global Energy Metals Completes Initial Resource Report ON Its Canadian Primary Cobalt Project Supporting High Grade Cobalt Mineralisation
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GLOBAL ENERGY METALS COMPLETES INITIAL RESOURCE REPORT
ON ITS CANADIAN PRIMARY COBALT PROJECT SUPPORTING HIGH
GRADE COBALT MINERALISATION
VANCOUVER, BC / TNW-ACCESSWIRE / SEPTEMBER 6, 2017 / GLOBAL
ENERGY METALS CORP. TSXV:GEMC | FSE:5GE1 (“Global Energy Metals”,
the “Company” and/or "GEMC") announces the completion of a National
Instrument 43-101 Resource Report (the “Report”) carried out by AGP Mining
Consulting Inc. (“AGP”) on the Werner Lake Cobalt Property (“Werner Lake”)
around the historic underground workings at the “Old Mine Site”, now
referred to as the Minesite Deposit and the West Cobalt Deposit.
Highlights:
• Indicated Resource of 0.51% Co (57,900 tonnes) and Inferred Resource of
0.48% Co (6,300 tonnes) at a 0.25% cut-off (see Table 1).
• Significant potential for increased tonnage at Werner Lake exists.
• Cobalt cut-off grade was estimated based on 3 year metal prices of USD
$15.60/lb.
• Cobalt is currently trading at USD $27.67/lb (MetalPrices.com, September 1,
2017), a 175% premium to the price used in this report.
• Drill program recommended to test for additional mineralization in areas of
the greatest potential.
• At present both the Minesite and West Cobalt deposits remain open at
depth and along strike.
Mitchell Smith, CEO:
“This report positions Global Energy as a leading project developer in the
competitive cobalt market – no other junior has an advanced primary cobalt
deposit in the region. The initial resource results supports the need for
further investment into the project as we identify high-calibre joint venture
partners for the cobalt deposit. Advancing Werner Lake with the right
partner will allow us to build on the value of the project and continue our
strategy of acquiring project stakes in other highly prospective projects.”
Paul Sarjeant, VP Projects commented on the results of the Report:
“We are very pleased with the work done by AGP and the results of the first
Ni 43-101 resource report on a Canadian primary cobalt deposit. This result
compares favourably with historic estimates. There is still excellent potential
down dip and along strike at the deposit to increase the mineralized envelope
and the next phase of exploration will address this opportunity”.
The Report was compiled from the extensive library of existing exploration
data assembled by GEMC. The estimate was completed based on the concept
of a small-scale underground operations for both the Old Mine and West
Cobalt Zones in order to update historic mineral resource estimates to meet
disclosure and reporting requirements set forth in National Instrument 43-
101. Mineral resources are estimated in accordance with the CIM Mineral
Resource definitions referred to in NI 43-101 Standards of Disclosure for
Mineral Projects.
Table 1: Mineral Resources for the Werner Lake Deposit at a 0.25% cut-off
grade.
Classification
Tonnage Co Cu Au Contained
Co
Contained
Cu
(‘000 t) (%) (%) (gpt) (‘000 lbs) (‘000 lbs)
Indicated 57.9 0.51 0.25 0.22 653 314
Inferred 6.3 0.48 0.14 0.24 67 20
Recommendation:
The Report has shown that further work is warranted at Werner Lake.
Several key recommendations have been made in order to advance the
development of the project, these include:
• A minimum of 16 drill holes (3,500 m) to further explore for and define the
known zone at depth and bring inferred resources to indicated category,
• Surface channel sampling over mineralized veins at surface to provide
greater confidence in mineral resource classification,
• Dewatering of the underground workings to provide access to underground
workings which will allow mapping and re-sampling of the existing
excavations, and
• Metallurgical test work to bring historic work to current standards.
AGP has recommended a drill program (see Figure 1) that identifies the
minimum drilling required to test lateral and depth extension of the current
mineralized envelope. Additional holes would be required to support
successful intercepts and bring areas of expected mineralization into CIM
compliant resource categories. Other drill holes recommended would target
zones within the resource area to upgrade resource confidence.
Figure 1. Proposed Drill Hole Locations; longitudinal section looking north
(60 m viewing corridor).
Grid is 200m x 200m
Notes on the Mineral Resource Estimate Parameters and Method:
• Mineral resources are estimated in accordance with the CIM Mineral
Resource definitions referred to in NI 43-101 Standards of Disclosure for
Mineral Projects. This mineral resource estimate has an effective date of
August 18, 2017 and was carried out by AGP Mining Consultants Inc. for the
Werner Lake Property that includes the Old Mine Zone and West Cobalt
Zone.
• The estimate was completed based on the concept of small-scale
underground operations for both the Old Mine and West Cobalt Zones.
• For the 1995 – 1997 and 2001 Canmine drill campaigns, the samples were
assayed at TSL Laboratories in Saskatoon, Saskatchewan. Samples were
crushed to a minimum of 70% passing a 10 mesh. The samples were then
riffle split to approximately 250 g, which was pulverized to 90% passing 100
mesh; and from 1997 passing 150 mesh. Co, Cu and As were digested in 20
ml HCl/HNO3 and then re-dissolved with 20% 3:1 HCl/HNO3. Assays over
5,000 ppm were analyzed by Atomic Absorption Spectrophotometry.
• For the 2010 Puget Ventures drill program, the samples were sent to
Accurassay Laboratories in Thunder Bay, Ontario. Sample preparation
consisted of crushing the samples to a minimum of 85% passing 10 mesh, a
500g split was pulverized to 90% passing 200 mesh (procedure APL1).
Platinum metals (Pt and Pd) and gold were analyzed using procedure code
APLPG1 which is a fire assay with atomic absorption spectrophotometry
(AAS) finish on 30 g. sub-sample. Samples were also analyzed for a suite of
30 elements using a multi -acid digestion (HNO3, HCl, HF, HClO4) with
Inductively coupled plasma atomic emission spectroscopy (ICP-OES) finish,
Cobalt West Deposit
Minesite Deposit
procedure code ALMA1. Accurassay laboratory in Thunder Bay declared
bankruptcy as of February 2017.
• AGP validated the assays in the database using historical records comprising
of internal Canmine assay compilation sheets, TSL laboratory original assay
certificates, ALS Chemex pulps re-assays laboratory certificates and
Accurassay’s laboratory certificates. In total, for all assays above 0.19%
cobalt, 94% of the values in the Geovia GEMS™ database were validated
against the original laboratory certificates. The remaining 6%, the values
were sourced from Canmine assay compilation sheets where the grades
likely originated from the TSL laboratory however, AGP cannot verify this
statement. AGP validation rate is lower for cobalt assays below 0.19%
which mostly includes material outside of the mineralized zones.
• The quality control and quality assurance program for the Puget Ventures
drilling consisted of regular insertion of blanks and standard reference
material obtained from a Canadian laboratory. AGP is aware that a portion
of the historical sample pulps analyzed at TSL laboratory were re-submitted
to ALS Chemex laboratory in Winnipeg Canada.
• The West Cobalt Zone was interpolated with 157 core holes completed by
Canmine and Puget Ventures from 1995 through to 2010, totaling 23,173
metres and containing 4,057 assay values. The Old Mine Zone was
interpolated with 109 drill holes completed by Canmine and Puget Ventures
from 1995 through to 2010 totaling 17,530 meters of drilling and containing
288 assay values.
• The construction of the mineralized wireframes targeted cobalt
mineralization grading 0.05% or above located preferably within the logged
West Cobalt zone (WCBZ) or the MINEZ code in the lithology table. The
wireframes were generally extended through non-mineralized drill holes as
long as there was indication that the zone was present. Wireframes
measuring less than 1.5m horizontally at the drill hole intercepts were
visually expanded to approach a 1.5m minimum mining width. The
mineralized wireframes more or less followed the direction indicated by the
hanging wall and footwall contact of the MIX Unit.
• Canmine preferentially sampled the drill core nominally between 0.5 and 1
m intervals. Puget Ventures mainly sampled the drill core at a nominal 1 m
intervals. Composite intervals were created across the mineralized
intersections to create a single composite per hole per intersection. The
average composite length was 4.9 m.
• For the treatment of outliers in the West Cobalt Zone, raw assays were
capped at 4.90 %Co and 4.48 %Cu. In the Old Mine Zone, raw assays were
capped at 6.76 % Co and 1.10 %Cu
• Specific Gravity (SG) in the resource model was derived from a suite of 56
core samples. The specific gravity measurements were carried out at ALS
Chemex using the pycnometer method. Since SNC Lavalin used a linear
equation to calculate the SG in the 2002 resource estimate, AGP elected to
retain the methodology with the following modifications;
• The linear regression was completed using the cobalt + copper
values.
• Since the back calculated SG did not match the original sample
distribution, an adjustment factor was introduced in the
calculation so that the distribution of the calculated SG in the
resource model matches the distribution of the original
samples at the 5th, 10th, 25th, 50th, 75th, 90th and 95th
percentile.
• A (3D) geological and block model was generated using GeoviaGEMS™
software. The block model matrix size of 5 m x 5 m x 1 m (width x length x
height) was selected was based on the size deemed suitable for an
underground mining scenario.
• Variography was carried out on the various domains of the Werner Lake
Deposit. Only one reliable variogram was produced based on the largest
mineralized vein (Domain WC2100) in the West Cobalt Zone. The ranges
from this variogram was used in determining search neighbourhoods for
the Werner Lake Deposit. The grade model was interpolated using inverse
distance cubed, and validated using ordinary kriging and nearest neighbour
models.
• The interpolation was carried out in three passes with increasing search
ellipsoid dimensions. For both zones, the classification was based primarily
on the number composites used to estimate a block and the distance to the
nearest composite. Isolated Inferred blocks within core areas of Indicated
resource blocks were captured within a closed polyline and upgraded to the
Indicated category.
• The Old Mine Zone was historically mined in 1950’s and the West Cobalt
Zone was explored via underground development and bulk sampling in the
1990’s. Historical records indicated that;
• In the West Cobalt Zone, Canmine (AIF, 1998) reported that
about 20,000 tonnes of cobalt bearing material was planned for
extraction and milling; and that approximately 10,000 tonnes
had been extracted by the end of 1997.
• In the Old Mine zone, Thomson (1950) reported that the shaft
accessing the underground workings was developed to a depth
of 100 feet. Carlson (1957) reported that approximately
143,000 lbs Co was removed.
• For the current resource estimate, AGP removed mined out material from
the current mineral resources. For the West Cobalt mine, a series mine
plans and one longitudinal section dated November 1998 were used to
digitize a 3D wireframe of the material assumed to be mined out. For the
Old Mine Zone, the resource model was sliced horizontally in 8 ft vertical
lift. Volume report for each of the slice was accumulated until 143,000 lbs
of Cobalt was reached. This determined the lower elevation of the mined-
out areas. AGP attempted to reasonably estimate the amount of material
mined-out and the likely location of the tunnels and stopes despite the poor
historical records. This is only an estimate and AGP cannot be certain if the
specific locations of the mined-out material is accurate or not.
• Metallurgical testwork on a flotation concentrate sample from the Werner
Lake deposit was carried out in 1997 at Lakefield Research (now SGS
Canada Inc.) in Lakefield, Ontario. The information available was reviewed
by AGP’s metallurgist and AGP noted that no information was provided in
the report on the specific origin of the concentrate sample, or the
flowsheet used to produce it.
• Under CIM definitions, Mineral Resources should have a reasonable
prospect of economic extraction. A cobalt price of US$ 15.60/ lb Co was
used for the cut-off calculation which corresponded to three year rolling
average seller’s price as of August 16, 2016. The cut-off calculation included
85% metallurgical recoveries based on the SNC Lavalin 2002 estimate. In
order to assess the Mineral Resources an in situ resource cut-off grade of
0.25% Co has been applied for potential material amendable to
underground extraction. The blocks above the cut-off were visually
examined to ensure they were coalescent in reasonable mining shapes.
• Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.
• An Inferred Mineral Resource is that part of a Mineral Resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Geological evidence is sufficient to imply
but not verify geological and grade or quality continuity. An Inferred
Mineral Resource has a lower level of confidence than that applying to an
Indicated Mineral Resource and must not be converted to a Mineral
Reserve. It is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with
continued exploration.
• Rounding of tonnes as required by reporting guidelines may result in
apparent differences between tonnes, grade, and contained metal content.
• The 1997-1998 historical resource estimates pre-dating the 2002 SNC
Lavalin report that are circulating in the literature for the Werner Lake
project (Harper 2015) are considered not valid by AGP and therefore cannot
be compared.
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 | 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
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