Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) is teaming up with an Australian cobalt junior to study the potential for metal recovery on its recently acquired Millennium project, the company announced Wednesday.
Vancouver-based GEMC said in a release that it signed a memorandum of understanding with Cobalt Blue Holdings Limited (ASX:COB) to investigate cobalt-copper-gold recovery potential at the Queensland project.
GEMC recently acquired full ownership of the exploration-stage project, a promising cobalt-dominant asset with high scalable potential.
READ: Global Energy Metals could increase inferred resource at Millennium project with more drilling, says report
Cobalt Blue is an exploration and project development company advancing the Thackaringa cobalt project in New South Wales, Australia.
As part of the agreement, GEMC and Cobalt Blue will combine efforts to review historical testwork to produce concentrates from the project and conduct analysis on its cobalt-pyrite quantity, grade and mineralogy.
The two juniors will also collaborate to produce concentrate samples and complete laboratory-scale testwork with Cobalt Blue’s own processing technology that extracts and recovers cobalt and elemental sulpher from cobalt-pyrite feedstock.
The processing technology was previously used at Cobalt Blue’s Thackaringa, proving technically and economically viable for the project. The results were then included in the release of the project’s initial ore reserve statement that accompanied a prefeasibility study.
It was also used at Havilah’s Mutooroo deposit and Cudeco’s Rocklands project.
GEMC CEO Mitchell Smith said it was “invaluable” to conduct metallurgical testwork at Millennium during its early stage development and further de-risk the project.
“Given the encouraging results of previous metallurgicals test with high recovery rates for copper, cobalt and gold we are confident that the results from this program can demonstrate a potentially viable option for the project,” Smith said in a statement.
GEMC also said it was looking at various processing options for the company as it continues to grow the existing resource and delineate new targets at Millennium.
Shares of GEMC were trading at C$0.05 in Toronto at Wednesday’s midday point and at US$0.04 on OTC markets.
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