Global Energy Metals acquires cobalt projects

Canada-based cobalt mine developer Global Energy Metals has acquired full ownership rights of the Millenium and neighbouring Mt Isa projects in Queensland, Australia.

The company had undertaken exploratory drilling work with the project's previous partners Hammer Metals last year. Cobalt grading was measured at between 0.18pc and 1.85pc, with additional reserves of copper and gold indicated.

But the development of the site is still at an early stage with feasibility studies yet to be undertaken and no set date for commercial production.

The company cited growing market concerns about the dominance of the Democratic Republic of Congo (DRC) in supplying more than half of the world's cobalt for its full acquisition of the project.

European alloy-grade cobalt prices have fallen in recent months from a high of $44/lb on 24 April to $40/lb, largely because of the availability of material with links to artisanal mining in the DRC trading at a discount.

Global Energy Metals has strategic partnerships with China's Beijing Easpring Technology Material and New Tiger Consulting, which will aim to secure funding, expertise and future offtake agreements.

In addition to the Millenium and Mt Isa projects, the company is developing the Werner Lake Cobalt project in Ontario, Canada. The Werner Lake site has a higher share of cobalt in its resource mix and could be a primary cobalt mine. The most recent indicated resource estimates for Werner Lake totalled 57,900t of ore, of which 0.51pc was cobalt and 0.25pc copper.