Global Energy Metals Corp (CSE:GEMC) released encouraging news Thursday on its Millennium cobalt project located in Mount Isa, Queensland, Australia.
This summer, Global Energy Metals completed its phase 1 program at its Millennium project with a primary focus on infill confirmation drilling to support continuing resource development.
The company said drill results exceeded expectations and successfully discovered several new mineralized zones. Given the success of this initial program, the company has approved and commenced the acquisition of the project from partner Hammer Metals.
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This accelerated acquisition of cobalt-rich assets in this pro-mining jurisdiction positions Globel Energy Metals as one of the region's leading cobalt explorer/developer, which is building a district-scale cobalt opportunity in Queensland Australia's prolific Mount Isa mining district.
"Results from exploration at Millennium during the first half of 2018 have demonstrated both the quality of the known resource and the strong potential for a significant increase in tonnage," said president and chief executive officer, Mitchell Smith.
"The new infill drill holes have demonstrated continuity between the previously reported high-grade cobalt zones with wide zones of cobalt mineralization near surface and at depth with assay results indicating metal grades exceeding prior expectations. We look forward to completing the 100% acquisition along with continued exploration success during the program's second phase aimed at expanding the resource through the identification of newly discovered mineralized zones."
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The company said it is in the process of finalizing the definitive agreement with Hammer Metals and expects to complete on the transaction in the very near future.
A second phase drill program is now being planned and will focus on expanding resources and testing prospective targets located on the project's known 3km long mineralized zone.
Shares of Global Energy Metals were at C$0.07 in Toronto on Thursday.