M2 Cobalt ()
M2 Cobalt () has provided an update on the exploration programme from late 2018, recent corporate activity and the programme for 2019 which includes up to 6,000m of drilling.
Assays have now been received, in full, for the 2,027m diamond drilling programme completed in late 2018. Drilling was focused at Kilembe with seven holes covering 1,056m. These holes intercepted sulphide mineralisation in the form of sphalerite, galena and chalcopyrite albeit with no major intersections, however, the results have provided important data for the next step. Four holes were also drilled at Bombo, the ultramafic target, covering 839m which also intercepted sulphide mineralisation. At the Waraji target, in the Bujagali license area, rig issues and timing around Christmas meant that just 131m were drilled meaning only a limited dataset was received.
The merger with Jervois Mining (JRV AU) is making firm progress and shareholder approval is now indicatively above 50.3%. M2 has also fulfilled its commitments required for the drawdown of a US$3m working capital facility from JRV. A shareholder vote to approve the merger is planned for early-mid May 2019 but the funds may be drawn down immediately.
The funds will be used to further M2’s exploration with an additional 3,000m of drilling at Waraji and Nile and a further 3,000m subject to additional IP geophysics. The results from the IP work will be used to better identify suitable follow up targets. Furthermore, M2 will commence a systematic geophysical and geochemical sampling programme on the license areas acquired in late 2018 as well as over a broader area at Kilembe in line with the Phase 1 work programme previously carried out.