a 2011 IMHL investor update Cobalt Play: Global Cobalt Corporation (GCO.TSX)
Global Cobalt is a consolidator of primary cobalt and strategic metals deposits, with properties in Canada, and conditional approval from the TSX to acquire primary cobalt assets in the Republic of Altai, as well as having a ROFR on further Russian and Mongolian assets. Formerly Puget Ventures (PVS-TSXV), it has been halted pending approvals on the Pafra Purchase Agreement of the Altai properties. Shareholder and TSX approvals have been received to graduate to the TSX as Global Cobalt ( GCO-TSX) Pro forma assets include:
Karakul, Altai: Global Cobalt will own 100% of the Karakul Cobalt Property in the Republic of Altai, potentially the largest cobalt project outside of Africa. The non-compliant Russian historical resource base is 15 MT grading .21% Co, 0.09% Bi, 0.44% Cu, and 0.08% WO3. A SRK report (available on Sedar) lists the potential size at 46 MT. A new 43-101 resource should be published in the 2Q2012. The Altai government and Russian federal government have designated C$360 million of a total C$440 million in program funds designed to develop mining in Altai to Karakul for investment in infrastructure and project specific expenditures, with Global Cobalt responsible for 25% A mine permit is in place for an initial 900,000 tonnes of ore in open pit. Also of note is an equity position in the company by the EBRD (European Bank for Reconstruction & Development) which protects this asset from concerns regarding Russian ownership. Kalguty, Altai: GCO has a ROFR on the Kalguty Deposit. This project offers near term production through a tungsten-molybdenum mine restart. It produced 9,000 tonnes of ore in 2008. SRK produced a mine visit report identifying 993,900 tons of 1.89% WO3 & 1.49M tones 0.35% Mo. GCO plans a $5 million refurbishment to restart the mine in 2012 at 35,000 tpa of production, which would throw off ~$8 million a year in cash flow. Kalguty plans to upgrade to 50,000 tpy run rate in year three. Werner Lake, Canada: This is a cobalt asset in Ontario with an non-compliant historic resource of 1.1M tonnes of 0.31% Co, 0.29% Cu and 0.011 opt Au. The company is anticipating an initial 43-101 from Werner in 1Q2012.