Global Energy Metals' New Work Program for one of Canada's Most Significant Cobalt Projects
Werner Lake Cobalt Mine - to Assess Historic Data and Path ForwardVANCOUVER, MARCH 20, 2017 - Global Energy Metals Corp. TSXV:GEMC ("Global Energy Metals", the "Company" and/or "GEMC") announces work program on its 100% owned Werner Lake Cobalt Mine Project located in Northwestern Ontario Canada. This is the only past-producing primary cobalt mine project in Canada that was re-permitted and re-engineered in the last 20 years. It is the most advanced, near-term production primary cobalt mine project in Canada, with excellent potential for additional cobalt mineralisation throughout GEMC's extensive land package.
The work plan will include an updated NI 43-101 resource on a small portion of the potential resource area around the historic underground workings at the "Old Mine Site", now referred to as the MInesite Deposit and the West Cobalt Deposit. GEMC will also seek specific permits to allow for the dewatering of the historic underground workings and attempt to access those workings to collect a bulk sample to complete metallurgical testing. This testing will help the Company determine what type and quality of battery grade material is potentially produceable from the site, building on the significant metallurgical work of previous operators. Based on the results of the NI 43-101 resource report, the Company will seek to add additional mineralisation through diamond drilling in areas of the greatest potential. At present both the Minesite and West Cobalt deposits remain open at depth and along strike.
Global Energy Metals will be assessing the Werner Lake Cobalt Mine project based on the very significant increase in cobalt prices from USD $10 to USD $24 per pound since March 2016 (http://www.infomine.com/investment/metal-prices/cobalt/1-year/).
The Werner Lake Cobalt Mine produced cobalt ore in the 1930s and 1940s from the "Old Mine Site" deposit area and with the discovery of the main ore area at the West Cobalt Deposit, was taken to production decision in the late 1990s when prices were below today's LME spot price of USD $24 per pound. At the time, infrastructure was put in place, including four season road, mill buildings, and tailings settling area. Decline ramp, drifts and raises of over 258 metres were driven into the heart of the deposit.
The most significant work was undertaken by Canmine Resource Corporation ("Canmine") between 1995 and 2002. During this time Canmine carried out extensive drilling and exploration work leading to the discovery of additional mineralized lenses beneath the old workings, now referred to as the Minesite Deposit (or "Old Mine Site"). The West Cobalt Deposit is located about 500 metres west of the Minesite Deposit and was also discovered during their exploration and development program. In addition to drilling, Canmine carried out diamond drilling, extensive metallurgical testing, underground rehabilitation and development work. A 25 tonne bulk sample was excavated from the Minesite area and submitted to Lakefield Research for analysis and hydrometallurgical testwork. Canmine reported "With a high-temperature pressure leach, Lakefield Research Limited extracted greater than 99% of the cobalt into a liquor, which was treated to precipitate cobalt carbonate assaying 35% cobalt with little (0.03%) arsenic and nonhazardous process solid residues" (Canmine Annual Information Form, August 12, 2002). From this same 2002 Annual Information Form, Canmine released the following Mineral Resources and Mineral Reserve Estimate for the Mine Site and West Cobalt areas:*
-Undiluted Proven Reserves of 140,031 tonnes of 0.47% cobalt, 0.26% copper and 0.008 ounces per tonne gold; and
-Probable Reserves of 40,829 tonnes of 0.25% cobalt, 0.20% copper and 0.003 ounces per tonne gold.
*The historical estimate at Werner Lake is not being treated as a mineral reserve or mineral resource. Key assumptions, parameters, and methods used to prepare the historical estimates are not known. A qualified person has not done sufficient work to classify the historical estimate as a mineral resource or mineral reserve. Additional drilling and testing is required to determine a classification as a mineral resource or mineral reserve under current NI 43-101 standards. The Company is not treating the historical information as a current mineral resource or mineral reserve.
In 2009-2010, GEMC's predecessor company drilled 7,565 metres of drilling in 31 holes that was used to further investigate the property and the openness of the deposit to depth and to the east. In addition to the findings from the 2009-2010 program, significant resource data is available, including analytical results, business plans, engineering studies and metallurgical reports from previous operators.
Drill results from that recent drilling included a 12.30 metre intercept averaging 1.21% cobalt including a very high-grade interval grading 12.48% cobalt over 0.90 metres. These high-grade intercepts are associated with anomalous copper, nickel and gold values (Puget Ventures release April 19, 2010).
The project is located near the Ontario-Manitoba border in the Kenora Mining District. The Werner Lake Geological Belt hosts numerous cobalt-copper and base metal showings, deposits and past producing mines. The two largest cobalt deposits defined to date are the Werner Lake Minesite Deposit and the West Cobalt Deposit, both controlled by GEMC. The area has seen extensive exploration and development work since the original discovery of cobalt in 1921. There is likely more cobalt mineralization in the Belt.
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 Corp. (TSXV:GEMC)
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. 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.
For Further Information
#1501-128 West Pender Street
Vancouver, BC, V6B 1R8
Email: info@globalenergymetals.com
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.
Copyright (c) 2017 TheNewswire - All rights reserved.