Global Energy Metals Corp (CVE:GEMC) continues to advance at the Millennium cobalt project in Australia, signalling to partner Hammer Metals that it wants to move on to earn a 65% interest in the property.
Late last year, the firm inked a deal with Hammer, which allows it to acquire a 75% stake by completing work and spending C$2.5mln within three years.
It already has spent at least C$500,000 to own a 25% interest.
"This is yet another major milestone for Global Energy Metals in advancing the Millennium Cobalt Project in Queensland Australia and laying the foundation for the company as a leading cobalt explorer and developer in our newly established Mt. Isa Cobalt Camp," said Mitchell Smith, GEMC president and chief executive.
"The excellent results returned thus far have further encouraged us on the potential for Millennium and adjacent Mt. Isa Projects as future contributors of non-conflict sourced cobalt desperately sought after by the downstream market including our strategic partners in Asia."
READ: Global Energy Metals eyeing district-scale cobalt development opportunity with Mt. Isa Cobalt projects deal
Last week, Global Energy revealed it had 'significantly' increased its cobalt footprint in Australia, as it unveiled a deal to buy the district scale Mt.Isa cobalt projects.
It means a near 20-fold increase in the firm's Australian land position from 135 hectares at Millennium to 2,560 hectares.
Millennium is at an advanced stage and has a large defined zone of cobalt-copper mineralisation which remains open at depth and along strike.
Hammer Metals completed a 'historic resource' JORC compliant in late 2016, which showed 3.1 million tonnes of inferred resources at 0.14% Cobalt, 0.34% copper and 0.12 g/t gold (using a CuEq cut-off of 1.0%).
During the first phase exploration, GEMC funded a ten-diamond drill hole campaign for an estimated 1,300 meters of drilling within the existing JORC (2012) resource area.
The work hit very wide and significant cobalt and copper grades, potentially expanding the resource area.
GEMC reckons the results from ongoing drilling will further define and upgrade known mineralisation ahead of a new resource estimate that will be reported as a cobalt equivalent (CoEq).