Meteoric Resources (ASX: MEI) has expanded its cobalt footprint in Canada after securing a binding agreement to acquire the Gillies project in Ontario.
The company is looking to acquire 100% of Gillies, which comprises 11 claim blocks in Ontario’s cobalt camp. The project is within a few short kilometres of multiple historical high-grade cobalt and silver mines which produced thousands of pounds of cobalt.
Overall, more than 60,000lb of cobalt and 33 million ounces of silver have come out of the Gillies township.
“The Gillies cobalt project is an exciting addition to Meteoric’s already impressive portfolio of primary cobalt projects in Ontario, Canada,” Meteoric managing director Dr Andrew Tunks said.
Dr Tunks claimed the company’s new management team was actively investigating highly prospective cobalt acquisitions in proximity to the town Cobalt.
Rock chip sampling across the project has unearthed up to 1.6% cobalt. Additionally, a shallow open pit sits across the claims that was operated between 1925 and 1928.
The company has visibly noted cobalt throughout the claims. Other minerals have also been found across the project including silver, copper and nickel.
Once completing due diligence, Meteoric will pay the vendor C$50,000 (A$50,335) in cash and issue C$50,000 worth of Meteoric shares.
A further three payments of C$60,000 (cash and shares) will be issued upon reaching milestones.
Gillies exploration plans
Initial exploration at Gillies will begin as soon as weather conditions permit and will involve resampling historic workings to focus on identifying cobalt.
Meteoric also plans undertake mapping, surface sampling and a detailed geophysical survey.
Trenching will be carried out to identify the extend of previously exploited mineralised veins and to gather bulk samples for analysis and metallurgical test work.
Meteoric’s other cobalt assets
Gillies complements Meteoric’s existing cobalt assets in the Cobalt province, with the company reporting exploration at Mulligan and Iron Mask would begin as soon as possible with drilling to begin by mid-year.
Historic drill results from Mulligan have assayed up to 19% cobalt, 1.03% nickel, 56.7 grams per tonne gold and 39.7g/t silver.
Meteoric’s own rock chip sampling returned 9.71% cobalt, 14.3g/t gold and 0.3% nickel.
Iron Mask has produced similar cobalt grades and 279g/t silver.
The other two cobalt projects Burt and Mulligan East are at earlier exploration stages.
By close of trade, Meteoric’s share price had dipped 5% to A$0.037.