Saturday 18th November 2017

Resource Clips


Posts tagged ‘cobalt’

Castle Silver Resources drills 1.55% cobalt over 0.65 metres with nickel, gold and silver in Ontario

November 13th, 2017

by Greg Klein | November 13, 2017

Last summer’s drilling at Ontario’s former Castle mine “intersected mineralization in each and every hole,” Castle Silver Resources TSXV:CSR reported November 13. The one assay released so far hit 1.55% cobalt, 0.65% nickel, 0.61 g/t gold and 8.8 g/t silver over 0.65 metres starting near surface at 3.85 metres in downhole depth. The company estimates true width between 65% and 85%.

Drilling finished in late August when an originally planned 1,500-metre program completed 22 holes totalling 2,405 metres.

Castle Silver Resources drills 1.55% cobalt over 0.65 metres with nickel, gold and silver in Ontario

Castle Silver expanded its summer campaign
from 1,500 metres to 2,405 metres.

“Once again we’ve demonstrated how historical operators overlooked the potential for cobalt, gold and base metals at the Castle mine as they focused exclusively on the extraction of high-grade silver,” said president/CEO Frank Basa.

“We will carry out trenching to follow up on an array of new near-surface targets generated by this drilling in the immediate vicinity of the Castle mine. But our priority now is to complete final preparations to carry out critical trenching and drilling of untested structures on the first level of the mine.”

With intermittent production between 1917 and 1989, the former mine has 11 levels totalling about 18 kilometres of underground workings. “This does not include an unknown extent of drilled vein structures which were never mined, typically due to silver grades below a certain high-grade threshold, for which CSR has records,” the company added.

Using XRF analysis, an independent firm has found potential for high-grade cobalt mineralization within unmined structures along first-level adit drifts and walls. In July Castle Silver released results from an 82-kilogram bulk sample of vein material that showed 1.48% cobalt as well as 5.7 g/t gold and 46.3 g/t silver. As a result, the company re-evaluated five previous chip samples for gold, with results averaging 3.7 g/t. The samples originally assayed 1.06% cobalt, 5.3% nickel and 17.5 g/t silver.

Earlier this month Castle Silver and Granada Gold Mine TSXV:GGM announced a provisional milling agreement for a plant that would be located on Castle Silver’s property in Gowganda, Ontario. About a 204-kilometre drive from Gowganda, Granada’s project reached pre-feas in 2014 and a resource update in June.

Castle Silver closed the final tranche of a private placement totalling $1.2 million in June.

Drilling begins as Kapuskasing tests historic high-grade copper in Newfoundland

November 3rd, 2017

by Greg Klein | November 3, 2017

A non-43-101, historic estimate of about a million tonnes averaging 1% copper has Kapuskasing Gold TSXV:KAP working to prove up a resource at its Lady Pond project in northern Newfoundland. Now underway, the first phase of modern drilling will sink eight to 12 holes totalling about 1,000 metres on the 2,450-hectare property.

Drilling begins as Kapuskasing tests historic high-grade copper in Newfoundland

Recent field work produced high-grade surface
samples from Kapuskasing’s Lady Pond copper project.

Three areas of interest are the Lady Pond prospect, the Twin Pond prospect and the Sterling prospect. The latter hosts a former mine and the historic, non-43-101 estimate that’s reportedly open in all directions. Some previous intercepts from Sterling, again historic and non-43-101, showed:

  • 5.5% copper over 4.42 metres, starting at 38.1 metres in downhole depth

  • 2.32% copper over 6.1 metres, starting at 106.68 metres

  • 1.45% copper over 4.57 metres, starting at 50.29 metres

Recent field work reported last month brought two Lady Pond surface grab samples grading 2.75% and 7.19% copper.

About 1.5 kilometres northeast, Twin Pond underwent 32 holes of drilling without an estimate being calculated. Some historic, non-43-101 highlights include:

  • 4.2% copper over 3.35 metres, starting at 82.3 metres

  • 2.16% copper over 3.05 metres, starting at 33.53 metres

  • 3.2% copper over 3.05 metres, starting at 70.14 metres

A recent grab sample from Twin Pond showed 9.03% copper.

One historic, non-43-101 assay for the Lady Pond prospect, about three kilometres northeast of Twin Pond, recorded 2.61% copper over 8.1 metres. A grab sample from the recent field work showed 0.089% cobalt, 1.54% copper and 9.4 g/t silver.

The property borders the town of Springdale and hosts logging roads and ATV routes. Another 94 kilometres by road sits Rambler Mining and Metals’ (TSXV:RAB) base metals mill. Rambler holds two historic, non-43-101 copper resources contiguous to Lady Pond.

In September Kapuskasing closed an option agreement on Daniel’s Harbour, a 1,050-hectare project on Newfoundland’s Great Northern Peninsula. Between 1975 and 1990, a former mine on the property produced around seven million tonnes averaging 7.8% zinc. The company considers Daniel’s Harbour prospective for additional Mississippi Valley-type deposits.

Just south of the peninsula, Kapuskasing holds the King’s Court copper-cobalt property.

The company closed private placements totalling $215,000 in August and $201,200 in June.

Read Isabel Belger’s interview with Kapuskasing Gold president/CEO Jon Armes.

Castle Silver Resources and Granada Gold Mine sign provisional milling agreement

November 1st, 2017

by Greg Klein | November 1, 2017

Two companies plan to co-operate on a proposed facility to process Quebec gold and Ontario cobalt-silver. Castle Silver Resources TSXV:CSR and Granada Gold Mine TSXV:GGM announced a provisional milling agreement to develop a flowsheet for a plant that would be located on Castle Silver’s property in Gowganda, Ontario. The Granada gold mine is located near Rouyn‐Noranda and about 204 kilometres by road from Gowganda.

Castle Silver Resources and Granada Gold Mine sign provisional milling agreement

As cobalt prices soar, Castle Silver Resources hopes to
revive a past-producer in Ontario’s historic Cobalt camp.

The companies have overlapping management and directors. Funding would come from US$20 million in loans, “which debt raise will be facilitated by a family office in the UK,” the companies stated.

The agreement foresees batch processing of at least 600,000 tonnes of Granada material grading four grams per tonne over three years. An option would allow treatment of another 1.4 million tonnes of pre‐concentrated waste rock. Initial metallurgical tests used a conventional coarse gravity process to achieve 70% gold recovery from Granada waste rock averaging 0.5 g/t, producing a 4.5 g/t gravity concentrate to be further processed at the mill.

The Granada project reached the pre-feasibility level in 2014 and a resource update last June. The Castle mine underwent intermittent silver-cobalt production between 1917 and 1989. Assays are pending from last summer’s 22-hole, 2,405-metre drill campaign.

In June Castle Silver closed the final tranche of a private placement totalling $1.2 million.

Visual Capitalist: Nickel, secret driver of the battery revolution

October 30th, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist | October 30, 2017

Nickel, the secret driver of the battery revolution

 

Commodity markets are being turned upside down by the EV revolution.

But while lithium and cobalt deservedly get a lot of the press, there is another metal that will also be changed forever by increasing penetration rates of EVs in the automobile market: nickel.

This infographic comes to us from North American Nickel TSXV:NAN and it dives into nickel’s rapidly increasing role in lithium-ion battery chemistries, as well as interesting developments on the supply end of the spectrum.

Nickel’s vital role

Our cells should be called nickel-graphite, because primarily the cathode is nickel and the anode side is graphite with silicon oxide.—Elon Musk,
Tesla CEO and co-founder

Nickel’s role in lithium-ion batteries may be under-appreciated for now, but certainly one person familiar with the situation has been vocal about the metal’s importance.

Indeed, nickel is the most important metal by mass in the lithium-ion battery cathodes used by EV manufacturers—it makes up about 80% of an NCA cathode and about one-third of NMC or LMO-NMC cathodes. More importantly, as battery formulations evolve, it’s expected that we’ll use more nickel, not less.

According to UBS, in its recent report on tearing down a Chevy Bolt, here is how NMC cathodes are expected to evolve:

Cathode Year Nickel Manganese Cobalt
NMC Present 33% 33% 33%
NMC 2018 60% 20% 20%
NMC 2020 80% 10% 10%

The end result? In time, nickel will make up 80% of the mass in both NCA and NMC cathodes, used by companies like Tesla and Chevrolet.

Impact on the nickel market

Nickel, which is primarily used for the production of stainless steel, is already one of the world’s most important metal markets, at over $20 billion in size. For this reason, how much the nickel market is affected by battery demand depends largely on EV penetration.

A shift of just 10% of the global car fleet to EVs would create demand for 400,000 tonnes of nickel, in a two-million-tonne market. Glencore sees nickel shortage as EV demand burgeons.—Ivan Glasenberg,
Glencore CEO

EVs currently constitute about 1% of auto demand—this translates to 70,000 tonnes of nickel demand, about 3% of the total market. However, as EV penetration goes up, nickel demand increases rapidly as well.

The supply kicker

Even though much more nickel will be needed for lithium-ion batteries, there is an interesting wrinkle in that equation: most nickel in the global supply chain is not actually suited for battery production.

Today’s nickel supply comes from two very different types of deposits:

  • Nickel laterites: Low-grade, bulk-tonnage deposits that make up 62.4% of current production

  • Nickel sulphides: Higher-grade, but rarer deposits that make up 37.5% of current production

Many laterite deposits are used to produce nickel pig iron and ferronickel, which are cheap inputs to make Chinese stainless steel. Meanwhile, nickel sulphide deposits are used to make nickel metal as well as nickel sulphate. The latter salt, nickel sulphate, is what’s used primarily for electroplating and lithium-ion cathode material, and less than 10% of nickel supply is in sulphate form.

A shift of just 10% of the global car fleet to EVs would create demand for 400,000 tonnes of nickel, in a two-million-tonne market. Glencore sees nickel shortage as EV demand burgeons.—Wood Mackenzie

Not surprisingly, major mining companies see this as an opportunity. In August 2017, mining giant BHP Billiton NYSE:BHP announced it would invest $43.2 million to build the world’s biggest nickel sulphate plant in Australia.

But even investments like this may not be enough to capture rising demand for nickel sulphate.

Although the capacity to produce nickel sulphate is expanding rapidly, we cannot yet identify enough nickel sulphate capacity to feed the projected battery forecasts.

Posted with permission of Visual Capitalist.

King’s Bay Resources to begin first-ever drill program on Labrador copper-cobalt project

October 26th, 2017

by Greg Klein | October 26, 2017

Following up on field work and airborne geophysics, King’s Bay Resources TSXV:KBG has returned to its Lynx Lake property to prepare the site for an initial drill campaign. Under focus will be a VTEM-identified anomaly about 400 metres in diameter, extending about 50 to 300 metres in depth on the property’s West Pit.

King’s Bay Resources begins first-ever drill program on Labrador copper-cobalt project

A prospector displays a sample of
massive sulphides from Lynx Lake.

Historic, non-43-101 grab samples from the area brought up to 1.03% copper, 0.566% cobalt, 0.1% nickel, 5 g/t silver, 0.36% chromium, 0.39% molybdenum and 0.23% vanadium. At least two holes totalling 500 metres are planned.

About 24,000 hectares in size, the southeastern Labrador property has a year-round highway passing through the property and an adjacent powerline. East of the highway, historic, non-43-101 grab samples assayed up to 1.39% copper, 0.94% cobalt, 0.21% nickel and 6.5 g/t silver.

Earlier this month King’s Bay wrapped up Phase I exploration at its 200-hectare Trump Island copper-cobalt project on Newfoundland’s northern coast. Assays are pending for 15 outcrop samples showing sulphidic wall rock and massive sulphide veins.

In September the company offered a private placement up to $250,000. The previous month King’s Bay closed the second tranche of a financing that totalled $402,750.

See an infographic about cobalt.

There’s skiing in them thar hills

October 23rd, 2017

by Greg Klein | October 23, 2017

Some appearances to the contrary, sliding downhill might not be the ambition of every mining company. But Barrick Gold TSX:ABX has a new ski resort under consideration around the site of a southern British Columbia past-producer. Although a local enthusiast says significant progress is imminent, PostMedia reports, a company spokesperson pegs the possible project “at a very, very early stage.”

There’s skiing in them thar hills

Recreational potential around a former underground
mine might offer Barrick an opportunity to diversify its assets.

That’s been the case since at least 2012. According to a Hope Standard account from that year, the miner had a feasibility study underway for an all-season resort around the former Giant Mascot underground mine about 10 kilometres from the town of Hope.

A 1974 B.C. Geological Survey report said Giant Mascot was mined briefly in the 1930s and 1958, then from 1959 to 1973. Production estimates vary, but a 1987 study commissioned for Mascot Gold Mines Ltd said Giant gave up 4.6 million tons containing 71 million pounds of nickel and 31.4 million pounds of copper, “with significant quantities of cobalt,” from 1959 to 1974.

“The mine closed in August of 1974 because of the loss of sales contracts for copper-nickel concentrate in Japan and because of the stringent policies towards the mining industry of the provincial NDP government,” the report stated. The study quoted a 1973 historic, non-43-101 estimate of 951,471 tons averaging 0.75% nickel and 0.3% copper. Operators had given only minimal attention to the mine’s gold, chrome, cobalt and PGM potential, the report added.

Barrick got the property through its 2001 merger with Homestake Mining, according to the Standard. By 2012 Barrick was considering a resort offering fishing, hiking and boating, along with possible ski facilities nearby, the paper noted. Consultations were underway with First Nations and other local communities.

Now PostMedia reports Dennis Adamson, an elected official of the Fraser Valley Regional District “and the project’s No. 1 booster,” says Barrick will soon file a notice of intent.

“I’ve been pushing this for years. It’s the No. 1 question I get,” he said of his 721 constituents. “Not a day goes by when I don’t get someone asking me when the ski hill will be open.”

But Andy Lloyd, spokesperson for the world’s top gold miner, cautioned that any such plan “is at a kind of conceptual stage … a very, very early stage … we wouldn’t want to create a false impression that Barrick is building a resort.”

Something of a higher priority might be Barrick’s relations with Tanzania, where the company holds a 63.9% stake in LSE-listed Acacia Mining, operator of three mines in the country. Barrick has proposed that the government get half the mines’ economic benefits, a 16% interest in the assets and US$300 million from Acacia towards unresolved tax claims.

Acacia says it doesn’t have the dough.

Meanwhile the Canada West Ski Areas Association, PostMedia reported, believes the province already has too many resorts chasing too few skiers.

High-grade copper samples precede fall drilling at Kapuskasing Gold’s Newfoundland project

October 13th, 2017

by Greg Klein | October 13, 2017

A property with over a century of mining and exploration history has modern drilling about to begin as Kapuskasing Gold TSXV:KAP readies a rig for the Lady Pond project in Newfoundland. Heightening the company’s anticipation are recent grab samples showing cobalt, silver and high-grade copper.

High-grade copper samples precede fall drilling at Kapuskasing Gold’s Newfoundland project

Surface geology at Lady Pond’s Sterling prospect buoys
optimism in Kapuskasing’s upcoming drill campaign.

Two grab samples reported for Sterling, one of the 2,450-hectare property’s three known prospective areas, showed 2.75% copper and 7.19% copper. A Twin Pond grab sample returned 9.03% copper, while another from the Lady Pond prospect assayed 0.089% cobalt, 1.54% copper and 9.4 g/t silver.

With a drill permit now in hand, Kapuskasing has about 1,000 metres planned to confirm historic reports of copper and begin work on a 43-101 resource for the three prospects. All three have undergone extensive drilling in the past, with impressive, albeit historic, non-43-101, reports of copper. Sterling hosts an historic, non-43-101 estimate of approximately one million tonnes averaging 1% copper that remains open in all directions.

Adjacent to the northern Newfoundland town of Springdale, the Lady Pond property sits 94 kilometres by road from a Rambler Mining and Metals TSXV:RAB base metals mill. Rambler holds two historic, non-43-101 copper deposits contiguous to Lady Pond.

On the province’s Great Northern Peninsula, Kapuskasing closed its acquisition of the 1,050-hectare Daniel’s Harbour project last month. A former mine that produced around seven million tonnes averaging 7.8% zinc between 1975 and 1990, the property is considered prospective for additional Mississippi Valley-type zinc deposits.

The company’s portfolio also includes the King’s Court copper-cobalt property just south of the Great Northern Peninsula.

In August Kapuskasing closed private placements totalling $215,000, which followed a June private placement of $201,200.

Read Isabel Belger’s interview with Kapuskasing Gold president/CEO Jon Armes.

September 29th, 2017

Castle Silver Resources president/CEO Frank Basa discusses the cobalt boom and Ontario’s Cobalt camp SmallCapPower
What will electric vehicles do for zircon demand? Industrial Minerals
Market crashes should be embraced and not feared GoldSeek
Price chart: Cobalt, lithium-ion batteries and EVs Benchmark Mineral Intelligence
The U.S. debt bubble will soon warrant serious measures Equities.com
Gold and bitcoin surge on North Korea fears Stockhouse
Looking at Vatic Ventures’ potash project in Thailand Geology for Investors
Copper: Good news for Chile, bad news for the U.S. Streetwise Reports
Q2 energy metals earnings review—crunch time for the lithium majors The Disruptive Discoveries Journal

Visual Capitalist: One chart shows EVs’ potential impact on commodities

September 15th, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist | September 15, 2017

 

One chart shows EVs’ potential impact on commodities

The Chart of the Week is a Friday feature from Visual Capitalist.

 

How demand could change in a 100% EV world

What would happen if you flipped a switch and suddenly every new car that came off assembly lines was electric?

It’s obviously a thought experiment, since right now EVs have close to just 1% market share worldwide. We’re still years away from EVs even hitting double-digit demand on a global basis, and the entire supply chain is built around the internal combustion engine, anyways.

At the same time, however, the scenario is interesting to consider. One recent projection, for example, put EVs at a 16% penetration by 2030 and then 51% by 2040. This could be conservative depending on the changing regulatory environment for manufacturers—after all, big markets like China, France and the UK have recently announced that they plan on banning gas-powered vehicles in the near future.

The thought experiment

We discovered this “100% EV world” thought experiment in a UBS report that everyone should read. As a part of their UBS Evidence Lab initiative, they tore down a Chevy Bolt to see exactly what is inside, and then had 39 of the bank’s analysts weigh in on the results.

After breaking down the metals and other materials used in the vehicle, they noticed a considerable amount of variance from what gets used in a standard gas-powered car. It wasn’t just the battery pack that made a difference—it was also the body and the permanent-magnet synchronous motor that had big implications.

As a part of their analysis, they extrapolated the data for a potential scenario where 100% of the world’s auto demand came from Chevy Bolts, instead of the current auto mix.

The implications

If global demand suddenly flipped in this fashion, here’s what would happen:

Material Demand increase Notes
Lithium 2,898% Needed in all lithium-ion batteries
Cobalt 1,928% Used in the Bolt’s NMC cathode
Rare Earths 655% Bolt uses neodymium in permanent magnet motor
Graphite 524% Used in the anode of lithium-ion batteries
Nickel 105% Used in the Bolt’s NMC cathode
Copper 22% Used in permanent magnet motor and wiring
Manganese 14% Used in the Bolt’s NMC cathode
Aluminum 13% Used to reduce weight of vehicle
Silicon 0% Bolt uses six to 10 times more semiconductors
Steel -1% Uses 7% less steel, but fairly minimal impact on market
PGMs -53% Catalytic converters not needed in EVs

Some caveats we think are worth noting:

The Bolt is not a Tesla

The Bolt uses an NMC cathode formulation (nickel, manganese and cobalt in a 1:1:1 ratio), versus Tesla vehicles which use NCA cathodes (nickel, cobalt and aluminum, in an estimated 16:3:1 ratio). Further, the Bolt uses a permanent-magnet synchronous motor, which is different from Tesla’s AC induction motor—the key difference being rare earth usage.

Big markets, small markets

Lithium, cobalt and graphite have tiny markets, and they will explode in size with any notable increase in EV demand. The nickel market, which is more than $20 billion per year, will also more than double in this scenario. It’s also worth noting that the Bolt uses low amounts of nickel in comparison to Tesla cathodes, which are 80% nickel.

Meanwhile, the 100% EV scenario barely impacts the steel market, which is monstrous to begin with. The same can be said for silicon, even though the Bolt uses six to 10 times more semiconductors than a regular car. The market for PGMs like platinum and palladium, however, gets decimated in this hypothetical scenario—that’s because their use as catalysts in combustion engines are a primary source of demand.

Posted with permission of Visual Capitalist.

Castle Silver Resources to study possible new plant and processing deal with Granada Gold Mine

September 11th, 2017

by Greg Klein | September 11, 2017

A gold milling arrangement now under consideration could offer synergies to two companies with overlapping management, directors and staff. Under an MOU signed by Castle Silver Resources TSXV:CSR and Granada Gold Mine TSXV:GGM, Castle Silver will study the potential installation of a 600-tpd gravity flotation plant at one of its northern Ontario properties. The facility would process feed from the proposed Granada gold mine across the Quebec border near Rouyn-Noranda. Castle Silver expects to complete the study in Q4.

Castle Silver Resources to study possible new plant and processing deal with Granada Gold Mine

Granada’s proposed mine reached pre-feas
in 2014 and a resource update in May.

A resource update released last May used a 0.39 g/t cutoff to show an in-pit measured and indicated total of 21.57 million tonnes averaging 1.16 g/t for 807,700 gold ounces. An underground inferred category for an area north of the potential open pit used a 1.5 g/t cutoff for 10.38 million tonnes averaging 4.56 g/t for 1.52 million ounces. Granada stated the new 43-101 supersedes the pre-feasibility report released in 2014.

The company describes its project as fully permitted, shovel-ready and one of the region’s largest undeveloped gold projects.

Meanwhile Castle Silver waits on assays for its namesake flagship, where summer drilling sunk 22 holes totalling 2,405 metres. Chip and bulk sampling results from the former underground silver mine have returned gold, cobalt and nickel grades in addition to silver. More bulk sampling is planned.

Castle Silver has raised $2.6 million since March.