Jan 23, 2021

Explorer looks to ‘next-step’ options for cobalt projects

Explorer looks to ‘next-step’ options for cobalt projects

Global Energy Metals says it is weighing up ‘next-step options’, including new strategic partnerships, to advance its portfolio of copper-cobalt-gold projects in North-West Queensland.

It comes as it continues to work towards a royalty sale to Electric Royalties after receiving Australian Financial Investment Review Board approval.

Global Energy Metals has established tenement holdings totalling 2560ha across the Mount Isa and Cloncurry district through subsidiary Element Minerals Australia, including properties with significant cobalt exploration potential.

Key assets include the Millennium, Mount Dorothy and Cobalt Ridge projects.

In a project update, the company said exploration to date had returned outstanding, high-grade intercepts and there was excellent potential to significantly improve the JORC Resources in tonnes and grade.

Additional targets were awaiting further exploration and test-work including drilling which would allow for increased confidence level of the current reported inferred resource category to indicated and/or measured, it said.

Global Energy Metals and Electric Royalties are working towards finalising a royalty deal which would see Global Energy Metals receive 1.15 million shares in Electric Royalties and a $150,000 cash payment in consideration for an initial 0.5 per cent gross metal royalty on Millennium and the Mount Isa Projects.

Electric Royalties has the option to increase its royalty on Millennium by an additional NSR of up to 1.5 per cent in exchange for consideration of $1.5 million, of which, 25 per cent may take the form of shares.

Global Energy Metals last year announced high cobalt, copper and gold recovery rates in metallurgical testwork on Millennium ore completed by Cobalt Blue Holdings using its processing technology.

Cobalt Blue was also involved in evaluating the cobalt extraction potential of tailings from CuDeco’s neighbouring Rocklands project.