Meteoric Resources snaps up Lorrain cobalt-silver prospect, ditches Gillies

Canadian cobalt-focused explorer Meteoric Resources (ASX: MEI) will acquire 100% of the 4.9 square kilometre Lorrain cobalt-silver prospect near Cobalt in Ontario, with its team to be sent out this week to start mapping and rock-chip sampling.

The Lorrain ground is 9km south-south-west of the Cobalt camp mining town and includes historic mine shafts and other workings.

Under the acquisition terms, Meteoric will issue the vendor 1 million ordinary shares and pay C$10,000 in cash. Further cash payments amounting to C$60,000 will be made upon reaching various milestones.

The vendor will retain a 2% net smelter royalty from any minerals Meteoric produces, with the Australian-listed company able to snap up half the royalty C$300,000 or the entire NSR for C$500,000 at its choice.

Meteoric said today the Lorrain asset was “highly prospective for primary cobalt mineralisation”, with the company to begin sampling the project’s numerous historical workings and dumps.

The company plans to start a geophysics and drilling campaign later this field season.

Meteoric managing director Dr Andrew Tunks said the company was growing its cobalt exploration tenure in “the most prospective cobalt ground in the Ontario Cobalt Belt”.

“Lorrain is located close to the historical production centre of the Cobalt township, it has significant historic workings and abundant visible cobalt mineralisation,” he said.

“Our cobalt manager Tony Cormack has been working closely with the Orix geoscience team and this new project fits our model perfectly.”

Exploration manager Mr Cormack said the cobalt project acquisition was a “coup” for the company.

“The project area contains numerous historical cobalt-silver shafts and pits which have never been explored using modern exploration techniques. The Lorrain area is famous for high-grade cobalt, with a historical 1930s report stating that at 168ft (53m) down shaft there was plenty of cobalt, although silver values were not that high.

“We will have boots on the ground at site this week to commence detailed mapping and sampling with ground geophysics and drilling planned during the 2018 field season.”

Gillies divestment

Meteoric also reported today it would not proceed with the acquisition of the Gillies cobalt project it had announced to market on 27 March 2018. The Gillies project had comprised 11 claims in Ontario close to historic silver and cobalt operations.

Previous rock chip sampling at the project had collected up to 1.6% cobalt and identified other minerals including silver, copper and nickel.

The company did not disclose its reasons for the divestment.

Meteoric shares were 2.94% up to A$0.035 by lunch-time.