- Global Energy Metals (GEMC) has signed an earn-in and joint venture agreement with Metal Bank Limited
- MBK Millennium, a Metal Bank subsidiary, can earn up to an 80-per-cent interest in the Millennium Project, which is owned by Global Energy’s subsidiary Element Minerals Australia
- Metal Bank plans to begin phase 1 of its exploration program in March 2022
- Metal Bank Limited is a mineral exploration company focused on gold and copper projects in Australia
- Global Energy Metals holds a diversified portfolio of exploration and growth-stage battery mineral assets
- Global Energy Metals (GEMC) is up by 4.17 per cent and is currently trading at $0.25 per share
Global Energy Metals (GEMC) has signed an earn-in and joint venture agreement with Metal Bank Limited.
MBK Millennium, a Metal Bank subsidiary, can earn up to an 80-per-cent interest in the Millennium Project in Mount Isa, Queensland, which is owned by Global Energy’s subsidiary Element Minerals Australia (EMA).
The Millennium Project holds an inferred 2012 JORC resource of 5.89 Mt grading 1.08 per cent CuEq across five granted mining leases with significant potential for expansion.
The Mount Isa Mineral Province holds more than a quarter of the world’s lead and zinc reserves, 5 per cent of the world’s silver resources and 1.5 per cent of the world’s copper resources.
In 2017 and 2018, Global Energy conducted a drilling campaign on the project demonstrating continuity within the mineralized zone, including 28 m of 0.35 per cent copper and 0.2 per cent cobalt.
Mapping, soil geochemistry and rock sampling identified an additional 1.5 km of anomalous cobalt-copper mineralization along a potential strike extension in the northern half of the tenement package.
Rock chip sampling also found elevated arsenic and copper geochemistry as well as anomalous cobalt and copper approximately 1 km north of the current Millennium resource as defined.
2022 drilling program
Following completion of its recent drill program, Metal Bank commenced a review of the current inferred resource in the project’s Southern and Central areas. This review provided support for an initial exploration target of 8-10 Mt grading up to 1.1 per cent CuEq.
In addition, there are a number of adjacent and/or peripheral drill-ready targets, including the Corella and Federal trends, plus key conceptual targets toward and/or adjacent to the Fountain Range/Quamby Fault system.
Phase 1 of the drilling program will consist of 1,800 to 2,000 m to test open Southern and Central area shoots at depth, the shallow Northern Area extension and infill, and the adjacent Pilgrim/Fountain Range/Quamby Fault Zone resource potential.
Phase 2 will consist of 2,000 m to infill resource gaps, extend existing near-surface resources and execute first-pass testing of peripheral targets.
Phase 3 will consist of 1,500 m for resource infill, economic assessment and follow-up work from phases 1 and 2.
Metal Bank plans to begin phase 1 in March 2022.
Earn-in and JV agreement
In stage 1, MBK Millennium must act as sole exploration funder to earn a 51-per-cent JV interest and the right to either:
- Form the JV and move to stage 2, at which time Metal Bank must issue shares to Global Energy valued at C$350,000
- Give notice to buy out 29-per-cent of EMA’s remaining interest, with MBK Millennium taking an 80-per-cent interest in the project as consideration for paying Global Energy $1M in cash and issuing it $250,000 in Metal Bank shares
In stage 2, MBK Millennium will fund exploration expenditures of $2M to earn an additional 29-per-cent interest in the JV. Upon completion, EMA may elect to require Metal Bank to buy out its remaining 20-per-cent interest for Metal Bank shares.
In stage 3, where MBK Millennium holds 80 per cent and EMA holds 20 per cent of the JV, respectively, each party will contribute its percentage share to the remaining expenditures.
The JV area includes all of the Millennium mining leases and a 30 km2 area around them.
Mitchell Smith, Global Energy Metals’ President and CEO, stated,
“We are pleased to have entered into a partnership with a group that shares our position that Millennium is a project with great potential for the discovery of a globally significant battery metals resource at a time when ramping up and sourcing supply is so critical to the electrification movement.
I am very pleased to say that we have achieved this with Metal Bank, an organization with the financial and technical capability to grow this project to its full potential. We are extremely excited to be working with them and executing on our strategy in advancing our projects through peer collaboration and building exposure to the critical metals powering an electrified future.”
Inés Scotland, Metal Bank’s Chair, added,
“Our exploration success at the Millennium Project has enabled a significant exploration target to be estimated for the project and our earn-in work program is aimed at converting that target into JORC resources, as well as following up on the significant cobalt results from our drilling earlier this year. We welcome GEMC as an MBK shareholder and look forward to continuing to work with them to advance the Millennium Project.”
Metal Bank Limited is a mineral exploration company focused on gold and copper projects in Australia.
Global Energy Metals holds a diversified portfolio of exploration and growth-stage battery mineral assets.
Global Energy Metals (GEMC) is up by 4.17 per cent and is currently trading at $0.25 per share as of 12:02 pm EST.