Resource World Magazine

28 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 8 Australian Update by Greg Barns M ount Isa in Queensland is one of Australia's most historic and prolific mining regions and now it is home to one of the 21st cen- tury's in-demand minerals: cobalt. Global Energy Metals Corp. [GEMC-TSXV; GBLEF-OTCQB; 5GE1-FSE] has three proj- ects in the region and is looking to build a large scale cobalt play over the next few years. The timing for Global Energy Metals, or GEMC, is excellent with CNBC reporting on July 9 that prices for cobalt, essential in making lithium-ion batteries, "more than doubled in 2017 over the previ- ous year, according to the United States Geological Survey" and that research- ers "haven't yet found a good substitute or way to build batteries without the mineral." GEMC's three projects are the Millennium cobalt project, the Mt. Dorothy cobalt project and the Cobalt Ridge Project. The Millennium Project is now 100%-owned by GEMC with the company announcing on June 26 that it had bought out previous owner Hammer Metals Ltd. [HMX-ASX], a locally-based company. "Given Hammer's technical and juris- dictional expertise, it will remain as operator of the property until at least the first anniversary of the date of the Definitive Agreement, with such engage- ment to be reviewed and renewed on an annual basis thereafter. Hammer shall receive an operator's fee of 10% of the expenditures carried out on the property," GEMC said. "Hammer will also co-operate with GEMC with a view to identifying and acquiring additional cobalt assets in the Mt. Isa region, fulfilling its mandate of creating a diversified and viable sup- ply of material to offset current reliance from DRC-sourced cobalt," the company's announcement noted. The Millennium Project is an advanced stage project with "a large defined zone of cobalt-copper mineralization open at depth and along strike." A 2012 JORC (equivalent to NI 43-101) Resource completed in 2016 reported 3.1 million tonnes of inferred resources grading 0.14% cobalt, 0.34% copper and 0.12 g/t gold (using a CuEq cut-off of 1.0%), and outlined a mineralized zone over a strike length of about 1.5 km. GEMC notes that under "Canadian report- ing standards this resource is considered a "historic estimate". The Millennium Project has recently produced some exciting drilling results. Six of ten holes have now been reported, all demonstrating wide and high-grade co- product cobalt, the company notes. Results included 1.1 metres at 0.73% CoEq consisting of 0.619% cobalt, 1.100% copper and 0.05 g/t gold from a 4.5-metre depth; 11.0 metres at 0.24% CoEq con- sisting of 0.223% cobalt, 0.134% copper and 0.07 g/t gold, including 2.0 metres at 0.68% CoEq consisting of 0.642% cobalt, 0.286% copper and 0.286 g/t gold from a 62.0-metres depth within a thick low- grade envelop of 80 metres at 0.07% CoEq consisting of 0.058% cobalt and 0.072% copper. Mitchell Smith, President and CEO, said the results exceeded expectations. Smith said that "grades in the new drill holes indicate higher cobalt grades, potentially supporting the concept of higher grades zones of both cobalt and copper mineralization within wide zones of mineralization." He said that the com- pany's "next focus will be to carry out exploration drilling on several highly pro- spective and underexplored areas of the Millennium property." In addition to the Millennium Project, GEMC signed an agreement with Hammer Metals to expand its footprint in the Mount Isa region to 2,500 hectares through the acquisition of the Mount Dorothy and Cobalt Ridge projects. Previous drilling at Mount Dorothy included 7 metres grading 0.14% cobalt, 2.55% copper and 2 metres of 0.12% cobalt, 0.13% copper, and rock chip sam- pling at Cobalt Ridge included a result of 0.31% cobalt, 3.63% copper and 1.25 g/t gold. Under the agreement, GEMC "will provide $1 million funding field and geo- physical exploration in an effort to further delineate drill targets to define a resource within the prospective new cobalt camp," the company said. n Global Energy Metals acquires Australian cobalt projects The Millennium Project is an advanced stage project with "a large defined zone of cobalt-copper mineral- ization open at depth and along strike."

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