Location: East-northeast of the town of Cobalt, Ontario
The Company has the option to earn a 60% interest in two principal cobalt properties, The Teledyne Cobalt Property and the Glencore Bucke Cobalt Property, in the mining favourable jurisdiction of Ontario, Canada.
The two cobalt properties are adjacent to each other and are situated approximately 6 km east-northeast of the town of Cobalt, Ontario. Highway 567 and a municipal road cross the Glencore Bucke Cobalt Property. The Properties are also accessible by a well maintained secondary road; 6 km from downtown Cobalt. A cobalt ore custom mill exists within 2 km of the Teledyne Cobalt Property Ramp. Both of these infrastructure investments add considerable value to our properties and will eliminate $millions in future costs to replicate. These two cobalt properties are directly on-strike with the Cobalt Camp’s most prolific past producing cobalt mine – the Agaunico Mine.
The Teledyne Cobalt Property consists of 5 patented and 8 unpatented mining claims covering an area of approximately 607.1 ha, while the Glencore Bucke Cobalt Property Bucke Property consists of 1 patented mining claim covering an area of approximately 16.2 ha.
The Teledyne Property is subject to a production royalty in favour of New Found Gold and an off-take agreement in favour of Glencore Canada Corp., while the Glencore Bucke Property is subject to a back-in provision, production royalty, and an off-take agreement in favor of Glencore Canada Corp. Glencore plc is the world’s largest producer of cobalt.
The Surrounding Region
The properties are located within the Cobalt embayment in the Southern Province of the Canadian Shield. The Property is underlain by an undulating gabbroic intrusive sill, which in turn is underlain by Huronian Supergroup sedimentary rocks that include Gowganda Formation feldspathic quartzites, siltstones, and conglomerates. The Proterozoic-aged sediments in turn, unconformably overlie Archean metavolcanics and metasediments.
The properties adjoin the south and west boundaries of claims that hosted the Agaunico Mine. From 1905 through to 1961, the Agaunico Mine produced a total of 4,350,000 lbs. of cobalt (“Co”), and 980,000 oz. of silver (“Ag”) (Cunningham-Dunlop, 1979). A significant portion of the cobalt that was produced at the Agaunico Mine was located along structures that extended southward towards the northern boundary of patented claim 372, part of the Teledyne Cobalt Property. Cobalt mineralization consisted of cobaltite and smaltite hosted within steeply dipping veins and extensive disseminations within Huronian sedimentary rocks. From 1951 through to 1957, the average Co content of the ores mined at the Agaunico Mine was approximately 0.5%. In 1955, 526,000 lbs. of Co, 146,000 oz. of Ag, 117,000 lbs. of nickel (“Ni”), and 81,000 lbs. of copper (“Cu”) were extracted from 62,000 tons of ore (Cunningham-Dunlop, 1979).