Projects

Lovelock Mine & Treasure Box Projects - Nevada, USA

Location

Churchill County, Nevada - United States of America

Resource Estimate

No Resource Estimate in place

Highlights


• Nevada Cobalt: The right place at the right time in a superior
mining jurisdiction which hosts several copper-gold projects nearby
and benefits from having excellent infrastructure.
• Strategically Situated: Located in the Stillwater Range with good
access, infrastructure in place and only 150 kilometres east of
Sparks Nevada, home to - Tesla’s Gigafactory 1.
• Historic Producer: Limited, yet high-grade, production of cobalt,
nickel and copper in the 1880s but the area has never been
thoroughly explored in the modern era.
• High-Grade Cobalt: The general average of the 200 tons shipped in
1886 averaged 14 percent cobalt and 12 percent nickel (Source:
"Mineral Resources of the United States for 1886”).
• Drill Ready: Eight diamond drill targets have been identified in
addition to geological mapping, chip and channel sampling and
geophysics.
• District Opportunity: Region shows strong enrichment in cobalt,
nickel and copper making it very attractive for further exploration and expansion through other attractive growth opportunities.

Project Status

Discovery-stage Exploration

Ownership

Option to acquire an 85% interest in both the Lovelock Mine and Treasure Box projects

 

 

Partnership

Global Energy Metals entered into an option agreement with Nevada Sunrise Gold, a Vancouver based company, whereby Global Energy Metals has been granted the Option to acquire an 85% undivided interest in the Lovelock cobalt mine and Treasure Box project located in Churchill County Nevada. Consideration is USD$75,000 cash payable over 2 years, 1,728,133 Payment Shares at a deemed per share price of $0.15 and approximately 1,615,459 Re-imbursement Shares to Nevada over 2 years for reimbursement of share payments to be made according to the underlying option held by Primus Resources Ltd. (“Primus”). Re-imbursement shares are subject to a floor price of $0.05. Primus will retain a 2% Net Smelter Return Royalty with the Company and Nevada, as joint venture partners, having the right to purchase half (1%) for 10 years from the effective date of the Primus underlying option for US$1,500,000.

About the Lovelock Cobalt Mine

The Property currently consists of 70 unpatented lode claims in the Cottonwood Canyon area of the Stillwater Range totaling approximately 1,400 acres (567 hectares). It was discovered by George Lovelock and Charles Bell about 1880. According to U.S. Government annual reports, the Lovelock Mine saw limited production of nickel, copper and cobalt beginning in 1883. The primary cobalt mineral was identified as “cobaltite”. The general average of the 200 tons shipped in 1886 averaged 14 percent cobalt and 12 percent nickel. The mine operated from 1883 to 1890 to the 100 foot level, reporting 500 tons of cobalt and nickel mineralized material shipped to England for processing. After intermittent production, an English company attempted smelting on site in 1898 but little or no production was made (Source: “Mineral Resources of the United States for 1885”, 1886). No further production from the Lovelock Mine is known for well over a century providing GEMC an excellent opportunity to unlock the potential value of the deposit through exploration work.

Geochemical Sampling

The vendor carried out two site visits to the Lovelock Mine in November and December 2017 and collected representative grab rock samples of historical mine waste, and various bedrock samples at the Lovelock Mine and in the areas of other nearby historical adits. The analytical results of several of the rock samples show strong enrichment in cobalt, nickel and copper. Geophysical Survey In December 2017, an initial 4.2 kilometre (2.6 miles) reconnaissance DC resistivity/induced polarization (“DC-IP”) survey by SJ Geophysics of Delta, BC, consisting of stations spaced 25 to 50 metres (80-160 feet) apart on five lines was completed across the Lovelock Mine area. This DC-IP survey is projected to have a depth of investigation deeper than the mining to the 100-foot level reported in the 1880s. The results of the survey not only detected the historic, near-surface mine workings and interpreted alteration (red areas on figure), but also show chargeability features (green areas on figure) related to structure and possible mineralization to a depth from surface of approximately 200 metres (656 feet).

About the Treasure Box Project

Treasure Box hosts mine workings from limited copper production, which occurred until early into the 20th century. A historical diamond drill hole (circa 1910) drilled at the Treasure Box by the Boyer-Nevada Copper Company reportedly intersected 1.52% copper over 85 feet (25.9 metres) with mineralization beginning at surface. A reverse circulation hole drilled on the Treasure Box by Utah International in 1976 returned 1.55% copper over 40 feet (12.2 metres) from a depth of 85 to 125 feet (25.9 to 38.1 metres), and the hole was stopped in chalcopyrite mineralization. The core Treasure Box claims were held continuously for over 20 years by a private company but were relinquished in September 2017, leading to their acquisition by Nevada Sunrise.

Geology and Mineralization of the Region

The rocks of the Lovelock Mine and Treasure Box area include highly altered sedimentary and volcanic rocks cut by a larger mass of diorite and by aplitic dikes, all of which are now highly altered. The altered volcanic rocks lie in a syncline bordered on the west, north and east by the altered sedimentary rocks. Probable faults, inferred from the nature of the contacts, form the boundaries between the sedimentary and volcanic rocks to the northwest. The cobalt and nickel minerals of the Lovelock Mine and the nearby Nickel Mine occur in stringers that cut the rock immediately surrounding the diorite. In the case of the Lovelock Mine, the stringers cut a highly-altered greenstone. The minerals recognized are tetrahedrite, erythrite (cobalt bloom), azurite, and green crusts that contain copper and nickel arsenates and sulphates. Other sources reported the principal mineral present is cobaltite. It was postulated by historical observers that there has been post-mineral faulting with downthrow on the west, and that the extension of the productive zone is west of the Lovelock Mine shaft and at greater depth than the historical workings could reach (Source: “Nickel Deposits in Cottonwood Canyon, Churchill County, Nevada”, H.G. Ferguson, 1939).

Qualified Person

Mr. Paul Sarjeant, P. Geo., is the qualified person for this release as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and verified the technical information contained herein.

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