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Bujagali

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Our Bujagali project comprises 6 ELs totaling 1705.8 km2 in South-Central Uganda in an area ranked by GTK as one of the highest priority exploration targets in the country. Historically there has been significant artisanal gold mining in and around our license areas and initial rock grab sample results have shown up to 1.24% Co, 0.4% Cu and 3.5g/t Au. Geochem, geophysics and geology indicate the potential for polymetallic IOCG-style mineralization as well as similarities to a number of DRC cobalt deposits.

In addition, GTK identified a potential major nickel anomaly on one license with up to 1938ppm Ni in soils and coincident magnetics (“values are so high that they clearly indicate Ni mineralization” (GTK, 2011)). M2 Cobalt’s current work program has confirmed this as the discovery of a large-scale nickel-cobalt-copper anomaly and refers to this anomaly as its “Bombo Target”, see below for more details.

An extensive ground exploration program is in progress at Bujagali, with the focus on two large anomalies, “Waragi” and “Bombo”, now confirmed as discoveries.  

Teams have now been mobilized and the exploration program includes:

  • Aerial drone surveys over the entire properties to determine access, culture, outcrops, old workings, and other geologic features by making high-resolution photo mosaics.
  • A large mobile sampling program including the collection of Heavy Mineral Concentrates (“HMC’s”), stream sediments, soils and rock grab samples.
  • Concurrent ground geophysics.
  • Trenching and drilling to help better understand the nature of mineralization and geology and to build upon real time results with the goal of identifying drill-ready targets
M2 Cobalt Bujagali Area Licences

History / World Bank

  • One of the top exploration targets in Uganda as ranked by GTK (Finish Geological Survey) for World Bank
  • Nickel anomaly identified by GTK
  • Significant historical artisanal mining
  • Historic rock grab samples up to 0.31% Co, 0.17% Cu, 3.5 g/t Au

 

M2 owns 6 licenses - 1,705.8 km2

  • Phase 1 work program complete
  • 8 initial large-scale targets discovered
  • Rock / soil samples and trenching up to 1.75% Co, 0.91% Cu, 0.26% Ni
  • Two styles of mineralization discovered:
  • Sediment hosted “Katanga-style” – cobalt / copper
  • Ultramafic – nickel, copper, cobalt

On April 19, 2018 M2 Cobalt announced that results from rock and soil samples taken as part of the initial phase of the work program recently launched on its exploration licenses (“ELs”) at Bujagali have resulted in the discovery of a new Cobalt (“Co”) and Copper (“Cu”) anomaly delineated by both soil and rock samples (named the ‘Waragi Target’), with up to 1.24% cobalt.

The results of soil and rock samples collected from the Waragi Target have delineated a well-defined cobalt and copper anomaly which is at present approximately 750 metres by 550 metres and open to the North East.  Both infill sampling and a grid extension have been completed to better define the anomaly, and to delineate its full extent, with results anticipated shortly.  Following which, the Company will move into large-scale trenching and targeted drilling to test mineralization at depth.Soil samples which form the anomaly comprise: 56 samples with more than 100 parts per million cobalt (“ppm Co”) including six samples with between 212 and 626 ppm Co; and, 37 samples with more than 100 ppm copper including seven samples with between 160 and 547 ppm Cu.  In addition to the soil samples, 23 rock grab samples contain anomalous cobalt (0.11 percent (“%”) Co to 1.24% Co) and, 19 rock samples contain anomalous copper (0.1% to 0.4% Cu).  Anomalous rock samples are hydrothermal breccias and altered meta-sediments.  Maps providing more details on the results can be found on the Company’s web site: www.m2cobalt.com/index.php/projects/bujagali.  Table 1 below shows the rock grab sample highlights.

Table 1 – Rock Grab Sample Highlights – Waragi Target

Rock Grab Sample ID Cobalt (%)* Copper (%)*
P869122 1.24% 0.4%
P870617 0.66% 0.28%
P869142 0.54% 0.38%
P869817 0.54% 0.31%
P869132 0.52% 0.34%
P869134 0.52% 0.24%
P871126 0.48% 0.33%
P869131 0.48% 0.27%
P869818 0.40% 0.25%
P869143 0.39% 0.27%
P869138 0.38% 0.19%
P869822 0.30% 0.13%

*Rock grab samples are selective by nature and are unlikely to represent average grades on the property.

All samples were sent to ALS Chemex South Africa (Pty) Ltd., an independent and fully accredited laboratory in South Africa (“ALS”) for analysis for gold multi-element Induction Coupled Plasma Spectroscopy (“ICP”).  The Company also has a regimented Quality Assurance, Quality Control (“QA/QC”) program where at least 10% duplicates and blanks are inserted into each sample shipment.

See maps below showing details of the cobalt & copper sample results at the Waragi Target.

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Cobalt in Soil and Rock Samples at Waragi Target

Copper in Soil and Rock Samples at Waragi Target

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M2 Cobalt EL1665 trench PR WGS84z36N 29Apr2018

Trench lines at Waragi

Trenching Results Waragi

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M2 Cobalt Waragi Target

Trench lines at Waragi

On April 12, 2018 the Company announced that results from rock and soil sampling and high-resolution ground magnetics have confirmed the discovery of a large-scale nickel-cobalt-copper anomaly at its Bombo Target. The soil samples collected delineate a well-defined nickel, cobalt, and copper anomaly of approximately 1,200 metres by 900 metres.. The soil anomaly closely mimics a well-defined magnetic high confirmed by high resolution ground magnetics carried out by the Company’s ground geophysics teams. 

Soil samples which form the anomaly comprise: ninety-one samples with more than 101 parts per million nickel (“ppm Ni”) including 13 samples with between 0.1 per cent nickel (“% Ni”) and 0.16% Ni; 86 samples with more than 100 ppm cobalt (“ppm Co”) including eight samples with between 206 and 416 ppm cobalt; and, elevated platinum, palladium and chromium in soils coincidental with the nickel anomaly.  In addition to the soil samples, rock grab samples contain anomalous nickel (0.15% Ni) anomalous cobalt (0.14% to 0.65% Co) and, anomalous copper (0.05% to 0.4% Cu). The results are believed to be indicative of ultramafic host rocks containing sulphides. Anomalous rock samples were either breccias or ultramafic rocks. Table 1 below shows the rock grab sample highlights.

Table 1 – Rock Grab Sample Highlights – Bombo Target

Rock Grab Sample ID

Cobalt (%)*

Copper (%)*

Nickel (%)*

P871732

0.65%

0.4%

0.013%

P869039

0.4%

0.05%

0.018%

P869008

0.18%

0.29%

0.15%

P869002

0.13%

0.33%

0.04%

P869049

0.11%

0.01%

0.013%

P869050

0.14%

0.01%

0.013%

*Rock grab samples are selective by nature and are unlikely to represent average grades on the property.

All samples were sent to ALS Chemex South Africa (Pty) Ltd., an independent and fully accredited laboratory in South Africa (“ALS”), for analysis for gold multi-element Induction Coupled Plasma Spectroscopy.  M2 Cobalt also has a regimented Quality Assurance, Quality Control program where at least 10% duplicates and blanks are inserted into each sample shipment.

Infill sampling has now been completed at Bombo to better define the anomaly ahead of large-scale trenching and targeted drilling to test mineralization at depth. This next phase of the program is expected to start shortly.

See map below showing details of the results at Bombo and also geophysical map of the anomaly and surrounding area.

Bombo Target Nickel with Geophys

Geophysical Map of Nickel/Cobalt Anomaly at Bombo Property

Cobalt in Soil and Rock Samples at Bombo Target

M2 Cobalt Bombo Results prApril2018
Bombo Target Nickel

Nickel in Soil and Rock Samples at Bombo Target

Cobalt & Nickel in Soil and Rock Samples at Bombo Target

Bombo Target
M2 Cobalt EL1666 Bombo PR WGS84z36N 29Apr2018

Trench lines at Bombo

Trenching Results at Bombo

Bombo Trench
M2 Cobalt EL1666 Bombo Target

Trench Results at Bombo

On 4 September, 2018 M2 Cobalt announced the discovery of 6 new, large-scale cobalt anomalies with high grade cobalt and copper sampling reported:

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