Projects

Charge Lithium Update

On 26 July 2016 the Company announced that it had executed a binding Terms Sheet with Charge Lithium Pty Ltd (Charge) to acquire 100% of the shares on issue in Charge. Charge was the holder of exploration licence applications in Western Australia. Under the Terms Sheet, the Company would acquire 100% of the shares on issue in Charge, in consideration for the issue of 17,500,000 fully paid ordinary shares. A further 3,500,000 fully paid ordinary shares were agreed to be issued subject to each grant of an exploration licence by the Department of Mines WA (DMP), with a maximum additional 17,500,000 fully paid ordinary shares proposed to be issued.

On 9 November 2016, the Company completed the acquisition of the (Charge), following receipt of shareholder approval, which was received in October 2016.

The Company carried out exploration activities on its acquired Charge Litihium projects as noted below. Preliminary work has begun on the group of tenements collectively titled the Great Southern Group including Pyramid Lake (E74/594), Ravensthorpe (E74/593) and Jerramungup (E70/4861).

Pyramid Lake (E74/594)

The Lake Pyramid Project is located approximately 150km north of the Port of Esperance in Western Australia. Cohiba is in the fortunate and unique position of having established infrastructure close at hand with sealed roads and main power adjacent to the lake and close proximity to the Esperance agricultural market.

Preliminary results have been received from samples of brine and sediments that were taken during the reconnaissance site visit earlier in the year. Elemental results show elevated levels of potassium and calcium as components of potash and gypsum but further testing is required to ascertain the lakes potential as a host for potash within brines as either Mureate of Potash (MOP), Sulphate of Potash (SOP) or a variant, or gypsum within the lake side dunal system similar to those found around Lake Tay to the north. The Company is following up additional analysis currently.

Jerramungup (E70/4861)

The area is heavily cleared flat lying farmland with intermittent outcrop mostly found within creek systems or float excavated from farm dams or removed from paddocks.

Large scale government mapping indicates no significant potential for the discovery of economic mineralisation within this tenement. This was reflected from the reconnaissance with only exposures of granite and minor mafic (dyke origin) detritus discovered.

It is likely this tenement will be surrendered in due course subject to final desktop reviews being carried out.

Ravensthorpe (E74/593)

E74/593 lies due south of the town of Ravensthorpe and is surrounded by lithium rich pegmatite in the Mt Cattlin mine as well as reports of high grade lithium found by other junior explorers.

The tenement area is largely covered by dense bush with minor farmland so access was limited to existing roads and tracks or through cleared farmland with permission from the owner. Many of the tracks and roads were impassable due to recent flooding that had destroyed several bridges and roads in the district.

The Company has announced that assay results have been received from the reconnaissance sampling undertaken earlier in the year. Unfortunately, no significant results were received for lithium from the pegmatites sampled.

Ground access at the time was severely limited due to the recent flooding events that cut roads and tracks, and the dense bush covering the majority of the tenement. The Company is reviewing its options for future exploration in the area.

 

Cobalt X Acquisition

Following shareholder approval sought at the Company’s General Meeting held on 27 June 2017, the Company completed the acquisition of all issued shares in Cobalt X Pty Ltd (Cobalt X) as announced to the ASX on 20 February 2017.

On 24 July 2017, the Company issued the consideration shares, with 50% of the shares being escrowed for 12 months from the date of issue. A total of 75,000,000 consideration shares were issued.

In April 2017, the Company received notification from Cobalt X Pty Ltd that Exploration Licence Application EPM 26379 had been granted.

The Mt Cobalt East tenement is dominated by granite and sandstone units containing some copper mineralisation associated with fracturing of the host rock. This unit abuts a metamorphosed and stone/slate/metasiltstone that has been crosscut by numerous ultramafic dykes, both of which contain zones of brecciation. No exploration seems to have taken place in these areas although it is possible some first pass exploration has been carried out.

Cobalt X is an Australian proprietary company involved in the business of minerals exploration (with a focus on Coper and Cobalt assets) which has made applications for the following minerals exploration licences pursuant to the Mineral Resources Act 1989 (QLD):

·       mining licence application ML 100115 (Mt Cobalt Stockpile Project);

·       exploration licence application EPM26377 (Mt Gordon Mine Area 1);

·       exploration licence application EPM26376 (Mt Gordon Mine Area 2);

·       exploration licence application EPM26380 (Success Mine Area 1); and

·       exploration licence EPM26379 (Mt Cobalt Mine Area).

Cobalt X also holds various contractual rights with third parties to facilitate the acquisition by it of additional mining and exploration projects and related plant and equipment (Project Rights) including rights to negotiate for the acquisition of a vat leech processing plant in the Mt. Isa region (referred to as the Lady Jenny processing plant).