The Teledyne Cobalt Property consists of 5 patented and 8 unpatented mining claims covering an area of approximately 607.1 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.
The Property is situated in Bucke and Lorrain Townships, located approximately 6 km eastnortheast of the town of Cobalt, Ontario.
The Property is underlain by an undulating gabbroic intrusive sill (Nipissing Diabase), 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 Nipissing Diabase is a generally homogeneous unit, typically medium grained and massive, becoming finer grained near the lower contact. The Nipissing Diabase dips to the south, exposing the lowermost rocks of its stratigraphy at the northern extent of the Property, and going southward rocks of higher stratigraphy are exposed at surface due to current level of erosion.
Fine grained massive to bedded quartzites and siltstones, along with pebble to boulder conglomerates of the Gowganda Formation comprise the Huronian Supergroup sediments. Occasionally the quartzites and siltstones contain isolated pebbles, usually comprised of granite, quartz, metasediments, or metavolcanics. The conglomerates can be either matrix or clast supported, with clasts ranging from granite, quartz, metasediments, and metavolcanics.
Archean metavolcanics are described as green, fine to medium grained massive mafic volcanics with lesser amounts of intercalated metasediments.
In 1953, Big Agaunico Mines Ltd. carried out a drilling program on a portion of the Teledyne Cobalt Property to locate the extension of the south-striking Agaunico cobalt-rich Vein 15. Drill holes No. 8 and No. 12 intersected 0.58% Co over 5 ft (1.5 m), and 0.46% Co over 3 ft (0.9 m) respectively. These intersections, located 350 ft (106.7 m) and 600 ft (182.9 m) south of the northern claim boundary of claim 372, confirmed the likely extension of the Agaunico cobalt zone (Vein #15) onto the Property (Cunningham-Dunlop, 1979).
In 1979, Teledyne Canada Ltd. (“Teledyne”) completed six surface diamond drill holes and encountered a zone of cobalt mineralization that extended 640 ft (195 m) south from the claim boundary.
In 1980, Teledyne completed a 10 ft (3.0 m) by 13 ft (4.0 m) access decline at a decline of -15 degrees for length of approximately 2,300 ft (701.0 m) to facilitate underground exploration of the mineralization zone encountered in their surface diamond drilling program. A total of 6,167 ft (1,879.7 m) of underground diamond drilling was completed in 22 drill holes (Bresee, 1981). The drill program confirmed the extension of the Agaunico cobalt zone onto claim 372 for a strike length of 500 ft (152.4 m). The drill program also encountered a second zone with a strike length of 450 ft (137.2 m). The most significant results included 0.64% Co over 55.3 ft (16.9 m), 0.74% Co over 28.6 ft (8.7m), and 2.59% Co over 8 ft (2.4 m). The aforementioned widths represent drill intersected widths, not true widths.
Based on the surface and underground diamond drill programs, historical reserves of 60,000 tons in the geologically inferred category, and 40,000 tons in the probable category, at an average grade of 0.45% Co, 0.6 oz/t Ag was estimated (Linn, 1983).
Of note, the reserve estimate is a historical estimate as defined by National Instrument 43-101. The historical reserve contains categories that are not consistent with current CIM definitions. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. No attempt was made to reconcile the historical reserve calculations as reported by Teledyne Tungsten. Surge Exploration Inc. is not treating the historical reserve estimate as a current mineral resource or mineral reserve.
During the fall of 2017, an exploration program was completed with 11 diamond drill holes totaling 2,204 m on the Teledyne Cobalt Property. This Phase 1 diamond drill program was designed to confirm and extend the existing known mineralization along strike, and up and down dip. The program tested the Teledyne Zone for a strike length of approximately 220 m.
Significant cobalt mineralization intersected in the Phase 1 diamond drilling program include:
- TE17-01 0.62% Co over 6.00 m from 136.00 to 142.00 m including 3.92% Co over 0.75 m from 140.25 to 141.00 m.
- TE17-02 0.95% Co over 1.9 m from 143.0 to 144.9 m, incl. 2.58% Co over 0.60 m from 144.30 to 144.90 m.
- TE17-02 0.59% Co over 3.9 m from 156.0 to 159.9 m, incl. 2.22% Co over 0.60 m from 156.6 to 157.2 m.
- TE17‐04 1.82% Co over 6.00 m from 138.00 to 144.00 m, including 5.06% Co over 1.75 m from 141.25 to 143.00 m.
- TE17‐05 2.32% Co over 4.00 m from 126.5 to 130.50 m.
- TE17‐05 1.70% Co over 6.00 m from 136.00 to 142.00 m.
- TE17-07 0.50% Co over 2.10 m from 127.60 to 129.70 m.
- TE17-08 0.77% Co over 3.40 m from 169.50 to 172.90 m, including 1.17% Co over 2.00 m from 169.50 to 171.50 m.
- TE17-08 0.59% Co over 1.20 m from 174.00 to 175.20 m.
- TE17-08 0.62% Co over 0.60 m from 178.60 to 179.20 m.
- TE17-11 0.54% Co over 2.00 m from 130.00 to 132.00 m.