Global Metals Exploration is a Sydney-based mineral exploration company focused on its exploration projects in Australia. Earlier this year, the company announced an agreement to acquire all of the outstanding shares of Hatua Resources, a Tanzanian graphite exploration company. Unfortunately this acquisition was turned down by Global’s shareholders at the AGM in October.
Global Metals Exploration NL – Exploring in Australia
Summary
- Major land position in the historically underexplored Jutson Rocks Greenstone Belt
Introduction
Global Metals Exploration is a Sydney-based mineral exploration company focused on its exploration projects in Australia. Earlier this year, the company announced an agreement to acquire all of the outstanding shares of Hatua Resources, a Tanzanian graphite exploration company. Unfortunately this acquisition was turned down by Global’s shareholders at the AGM in October.
Australian Properties
Global Metals was able to secure exploration rights over the vast majority of the Jutson Rocks Greenstone Belt, by entering into Joint Venture agreements and staking new claims.
The Jutson Rocks Greenstone belt is located approximately 125 kilometres northeast of Laverton within the northeastern region of the Yilgarn Craton. Infrastructure is excellent as there’s a bitumen highway to Laverton, and a gravel road from Laverton to the project.
The Jutson Rocks Greenstone Belt is approximately 60km long and on average 9km wide, and stretches out in a North-Northwest strike.
Jutson Rocks
Despite the fact that only limited exploration work has been carried out at Jutson Rocks, older Australian investors might remember the huge appreciation in share price of Tasminex who operated there during the ‘nickel boom’ in the Seventies. Tasminex’ share price skyrocketed from A$3/share to almost A$100/share after the company revealed they intercepted copper and nickel at their Mt. Venn prospect. Further work at Mt. Venn was carried out more recently by Helix Resources in 2005, which intercepted 4m at 1.3% copper.
Global Metals Exploration re-initiated exploration in late 2009 and conducted airborne VTEM and ground-EM. The company also initiated a small RC drill program, which returned drill results of 4 meters at 3.5g/t gold and several other 1 meter-intercepts. Obviously you can’t build a mine on intercepts like these alone, but it’s very encouraging to find decent intervals at this stage of exploration that include 14gram-meters per tonne in their Phase I drill program.
The company also finished a Phase III Bulk Leach Extractable Gold (BLEG)-exploration programme, and the results were very encouraging as well.
You can read more about exploring with BLEG techniques on our blog at http://bit.ly/NxwUBl
– Mt. Venn
Mt. Venn is probably the most exciting target, and Global Metals has completed a 10-day RC drill program in August. The results of this drill program have been released a few weeks ago, and are relatively encouraging.
The best intercept was found in RC drill hole 027, which intercepted 4 meters of 2,890 ppm copper and 886 ppm nickel at a depth of only 48 meters from surface. The company is encouraged by these intercepts, and hopes to find a significant copper and nickel mineralization in the Phase II drill program, which will consist of Air Core drilling as the targets are quite large.
Global Metals Exploration can earn 80% of Mt. Venn through a Joint Venture agreement with ASX-listed Platina Resources Ltd. (ASX:PGM).
– Chapman’s reward
Chapman’s Reward is another part of the Jutson Rocks project and covers an area of historical gold workings. Available records from this area have shown that the original small-scale miners mined ore containing in excess of 1.5 oz of gold per tonne (yes that’s Ounces not Grams) which is astronomical high compared to the current average grade being mined around the world.
A sampling program at Chapman’s Reward has revealed grades up to 208g/t Au, and this obviously warrants further exploration efforts.
The Leonora Project
In June, Global Metals announced a Head of Agreement for the acquisition of the historic Leonora Goldfields in Western Australia. The Leonora project is situated in the Leonora belt, which has seen historical resources of in excess of 12M ounces of gold.
The management team
Andrew Mortimer – Executive Director Operations
Andrew Mortimer is the Executive Director of Operations at Global Metals.
With a background in law and metallurgy as well as experience in investment markets, Mr Mortimer has experience in creating, structuring and preserving the necessary strategic alliances to build solid mining businesses with the potential for sustained growth.
Mr Mortimer is focussed on developing and building Global Metals’ Laverton project portfolio that encompasses Mount Venn and Jutson Rocks Greenstone Belts.
Mr Mortimer is currently Chairman of corporate advisory firm Superstructure International Pty Ltd, the Chairman and founder of Proto Resources & Investments Ltd (ASX:PRW) as well a Director of SA Capital Funds Management Ltd.
Mr Mortimer holds a BA and LLB from Sydney University and is a Member of the Australian Institute for Mining and Metallurgy.
Lia Darby – Chairperson, Executive Director
Lia Darby is a Non-Executive Director and the Chairman of Global Metals.
Ms Darby was admitted to practice law in the Supreme Court of NSW but now works full-time as a mining company executive.
As Executive Director of corporate advisory firm Superstructure International Pty Ltd, Ms Darby has worked in corporate advisory on listing mining securities and assisting the senior management of listed companies to improve shareholder value. Ms Darby holds a BA and LLB from Sydney University. Ms Darby is also an Executive Director of Proto Resources & Investments Ltd and a Non-Executive Director of Condor Blanco Mines Ltd.
Carl Swensson – Technical Director
Carl Swensson is a leading geologist with extensive experience, with 26 years experience in the minerals exploration and mining industries. Mr. Swensson has held senior exploration and exploration management positions with CRA Limited, Bendigo Gold Associates and Normandy Mining Limited.
As Chief Exploration Geologist at Normandy Mining, Mr Swensson was responsible for the management of the exploration budget across that company’s tenement portfolio. This included exploration of the Neptune project, which later became Prominent Hill.
Mr. Swensson is a Director of Condor Blanco Mines Ltd.
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Conclusion
Global Metals Exploration is only a microcap-company, and although Jutson Rocks still is in the very early stages of exploration, there could be a lot of potential here.
Jutson rocks has historically been underexplored, and it is possible that Global Metals will find new gold-bearing structures that might be large enough to continue towards development. Their BLEG-exploration program has revealed large zones with anomalous gold values, and Global Metals plans to do follow-up exploration on these targets.
As Global Metals’ market capitalization is only A$3.4M, any exploration success could provide a huge pay-off when economically viable deposits would be found.
Disclosure: Global Metals Exploration NL is a sponsoring company. Please see our disclaimer for current positions.
