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Kilembe Area Properties

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M2 Cobalt’s Kilembe Properties comprise two ELs totaling 193 km2 of highly prospective land in Kasese and Bunyangabu Districts both bordering the DRC. Both licenses are in an area ranked by the Geological Survey of Finland (“GTK”) as the number one area for mineral exploration in Uganda.

The ELs are approx. 25 Kms North and approx. 25 Kms South of, and are both on trend with, the former producing Kilembe mine which was operated by Falconbridge between 1956 and 1977 and produced 16 million tons of ore grading approx. 2% copper and approx. 0.17% cobalt. Recent work by GTK in 2011 at, and around, the Kilembe mine included ore assays of 2.20% Cu, 0.25% Co, 0.36% Ni. The mineralization at and around the Kilembe mine is VMS in nature and indications are that the mineralization extends throughout, and on trend with, the surrounding area.

The Company has contracted Geotech Ltd. to conduct a high resolution airborne geophysical survey over its Kilembe area ELs.  The Company hosted an Official launch for this survey in Kasese Town, Kasese District, Uganda, on March 29, 2018 which was attended by over 150 prominent government officials and community members, including the Minister of Energy and Mineral Development and that Ministry’s Permanent Secretary.  The event was covered by the country’s major media outlets as there is significant ongoing interest in the Company’s high-profile program in Uganda; positive results could have a significant positive impact on the country’s mineral sector.

The survey is being conducted using helicopter-borne VTEM™ B-Field and horizontal magnetic gradiometer geophysical surveys flown at 100-metre spacing. The V-TEM technology and survey design was specifically chosen for its effectiveness at identifying buried exploration targets that possess a similar signature to the VMS style cobalt-copper deposits at the Kilembe mine. The technology and similar surveys have led to the rapid discovery of VMS style deposits in other parts of the world which have then been quickly moved to resource definition and mine construction.

Once the airborne survey has been completed, ground crews will move across the licenses to conduct in-depth ground geophysics and to implement the same wide-spread soil and rock sampling program currently being conducted at Bujagali.

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Historic Geophysical Map of Kilembe area

  • Distinctive magnetic characteristics of the Buganda-Toro System rocks appear to extend eastward.
  • Kilembe Mineralization. Expect sulphide mineralization conductors.

Priority Exploration Areas

  • If there is one VMS style deposit, there are likely more in the neighbourhood.
  • The success of the Historic Kilembe Mine demonstrates the high potential of surrounding concessions.
  • Targeting discovery of additional World Class Co-Cu deposits is priority.
M2 Cobalt Kilembe Area EL Inset WGS84z36N 30Apr2018
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Adapted from: Hester, Boberg, Tuhumwire, Katto and Nyakaana 2006.

On trend with proven cobalt producer

  • Historic Kilembe Mine produced 16 million tons of ore grading approx. 2% copper and approx. 0.17% cobalt.
  • Falconbridge operated Kilembe Mine between 1956 and 1977, they estimated (1979): 4.1 Mt grading 1.77% Cu measured and indicated.

Geotech limited high-resolution geophysical survey

  • Heli-borne airborne geophysical survey – VTEM™ B-Field and Horizontal Magnetic Gradiometer Geophysical Surveys.
  • Initial Phase of Work: Fly ~200 sq km in Kasese District on two M2 exploration licenses. 100m line spacing, 2943 line kms planned.
  • Technology and survey design specifically chosen due to previous success in discovering buried VMS style deposits.
  • Extension to other M2 concessions: As targets are identified.
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