Tuesday 25th July 2017

Resource Clips


Posts tagged ‘cobalt’

Castle Silver Resources adds gold to cobalt-silver assays, expands drilling at Ontario past-producer

July 19th, 2017

by Greg Klein | July 19, 2017

As underground mini-bulk sampling brings high-grade results, Castle Silver Resources TSXV:CSR has increased its surface drill program at a former mine near Ontario’s Cobalt camp. An 82-kilogram sample of vein material taken near a first-level adit graded 1.48% cobalt, 5.7 g/t gold and 46.3 g/t silver. Nickel values are pending. Meanwhile the Phase I surface drill program that began earlier this month with a 1,500-metre goal has been increased to 2,000 metres in approximately 20 holes.

Castle Silver Resources adds gold to cobalt-silver assays, expands drilling at Ontario past-producer

Visible cobalt from a vein on Castle
Silver Resources Beaver project.

The gold grades have the company re-checking a previous batch of chip samples that weren’t assayed for the yellow metal. The company’s also extracting another sample from the same area to verify the results.

Castle Silver noted that the samples are “selective and should not be considered representative of mineralization underground or elsewhere on the property.”

Eighty kilometres southeast, Castle Silver has been collecting surface samples on its 100%-optioned Beaver project, another former silver mine with cobalt potential. Samples taken in 2013 from waste rock left by historic extraction graded 7.98% cobalt, 3.98% nickel and 1,246 g/t silver.

On closing a $882,500 financing last week, the company’s private placement total has hit nearly $2.6 million since March.

Read more about Castle Silver Resources here and here.

Castle Silver Resources begins surface drilling at Ontario cobalt project

July 11th, 2017

by Greg Klein | July 11, 2017

With cobalt prices soaring at record levels, Castle Silver Resources TSXV:CSR opens a new front in its quest for the coveted commodity. The company has begun an “aggressive” 1,500-metre program at the Castle past-producer, where cobalt potential was downplayed by previous silver mining operations. This campaign will be carried out from surface within 200 metres of the former mine’s portal, the company stated.

Castle Silver Resources begins surface drilling at Ontario cobalt project

Last month the company released assays from 200 kilograms of underground chip samples taken just inside the portal, with selected samples grading as high as 1.8% cobalt, 8.6% nickel and 25.2 g/t silver. Underground sampling was continuing, Castle Silver reported.

Some of the material will undergo tests with the company’s proprietary Re-2OX hydrometallurgical process to produce cobalt powder samples for end-user evaluation. The company also sees potential for Re-2OX to recover lithium and cobalt from Li-ion batteries.

To help guide the current drill program, Castle Silver gleaned 3D data from a cavity monitoring survey of the former mine’s first level, one of 11 levels in an operation that produced about 9.5 million ounces of silver and 299,847 pounds of cobalt during intermittent extraction between 1917 and 1988.

The 3,252-hectare property lies about 80 kilometres northwest of Ontario’s historic Cobalt camp. Within the camp itself, Castle Silver holds a 100% option on the Beaver and Violet cobalt-silver properties and their former mines.

On June 15 the company closed the final tranche of an over-subscribed private placement that totalled $1.2 million.

London Metal Exchange prices currently peg cobalt at $59,500 a tonne, up from $32,750 at the beginning of the year. In April Benchmark Mineral Intelligence analyst Caspar Rawles told a Vancouver audience that the Democratic Republic of Congo produces 64% of global cobalt mined supply while China produces 57% of refined supply.

Berkwood Resources adds lithium to Quebec energy metals portfolio

July 11th, 2017

by Greg Klein | July 11, 2017

Seeing lithium potential in the gold-laden Abitibi, Berkwood Resources TSXV:BKR announced a 3,064-hectare acquisition called the Delbreuil project on July 11. Located in a region known for lithium showings, the property features spodumene-hosting pegmatites and historic lithium assays.

Berkwood Resources adds lithium to Quebec energy metals portfolio

One historic, non-43-101 result from a pegmatite sample graded 1,290 ppm lithium and 126 ppm tantalum. Historic drilling also brought results for zinc, nickel, copper, silver and cobalt. Satellite imagery suggests multiple outcrops have high potential for hosting additional pegmatite intrusions, the company added.

Now being planned is Delbreuil’s first lithium-specific program, with Phase I field work to include prospecting, mapping and till sampling.

Subject to approvals, Berkwood gets the road-accessible project for 2.1 million shares and $15,000.

The property would complement Berkwood’s portfolio of energy metals projects in Quebec. Last month the company announced an agreement to acquire the Cobalt Ford property in the infrastructure-rich Côte-Nord region. Previous work on the 2,176-hectare property revealed three base metals showings as well as historic, non-43-101 samples of 904 ppm and 1,480 ppm cobalt.

Last year’s work on the company’s Lac Gueret South graphite project, meanwhile, produced grab samples from Zone 1 averaging 4.99% carbon-as-graphite within a range of 0.04% to 36.3% Cgr in the vicinity of large geophysical anomalies. The property’s located about three hours by road from the city of Baie-Comeau.

Visual Capitalist: How commodities performed in H1 and why they’re very cheap

July 5th, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist | July 5, 2017

If you’re looking for action, the commodities sector has traditionally been a good place to find it.

With wild price swings, massive up-cycles, exciting resource discoveries and extreme weather events all playing into things, there’s rarely a dull day in the sector. That being said, it’s hard to remember a more lacklustre period for commodities than the last couple of years.

For commodity bulls, the good news is that the sector is no longer tanking. The bad news, however, is that all the recent action has been in relatively niche sectors, as metals like cobalt, zinc and lithium all have their day in the sun.

At the same time, the big commodities (gold, oil, copper) have all slid sideways, having yet to revisit their former periods of glory.

Commodity winners so far

Before we highlight why commodities could still be cheap, let’s look at recent performance to get some context. Here are the commodities that have positive returns in H1 2017 so far:

How commodities performed in H1 and why they’re very cheap

 

Palladium is the best performer in 2017 so far, and it has now almost passed platinum in price. That would be the first time since 2001 that this has happened, and for the stretch of 2007 to 2012 it was even true that palladium traded at a $1,000 deficit to platinum.

Agricultural goods like rough rice, lean hogs, oats and wheat have also gotten more expensive so far this year. Meanwhile, metals like gold, copper and silver have seen modest gains—but only after dismal performances in the last part of 2016.

The losers so far

Here is the scoreboard for the commodities in negative territory, with the most noticeable losses in sugar and energy.

How commodities performed in H1 and why they’re very cheap

 

Are commodities cheap?

From the post-crisis bottom in 2009 until today, the S&P 500 is up a staggering 215.4%.

During that same timeframe, most major commodities crashed and then went sideways. The Goldman Sachs Commodity Index (GSCI) is down roughly 31.2%, which is a strong juxtaposition to how equities have done.

This extreme divergence can be best seen in this long-term chart, which compares the two indices since 1971.

How commodities performed in H1 and why they’re very cheap

 

In other words: Despite the lack of action in commodities that we noted earlier, the sector has never been cheaper relative to equities, even going back 45 years.

That means that there could be some much-needed action soon.

Posted with permission of Visual Capitalist.

Newfoundland newly found

June 26th, 2017

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

 

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

Isabel Belger

Isabel: I would like to introduce Jon Armes, the president and CEO of Kapuskasing Gold TSXV:KAP. Jon, good to see you again. Tell us something about your background to start with.

Jon: Hi Isabel, good to see you too. I started in the mineral exploration business back in 1993 as an investor relations consultant. I spent the better part of 10 years working for various companies exploring for gold and precious metals as well as base metals and diamonds.

In the mid-2000s I ended up working in the field alongside a couple of different geologists and spent time managing drill programs, splitting drill core, prospecting and assisting in the staking of claims. I also helped structure some companies—bringing project opportunities and public companies together.

In 2010 I was given the opportunity to run a junior exploration company called Lakeland Resources. That company merged with Alpha Exploration in late 2015 and became ALX Uranium [TSXV:AL]. I remained as president until October of 2016 after concluding a transaction with Denison [TSX:DML] on behalf of ALX.

I was appointed president of Kapuskasing Gold in February of 2016. We carried out some drilling last summer on a gold project in Timmins, Ontario, but unfortunately did not intersect anything of significance in that campaign. Since that time I have been looking for the right opportunity or opportunities to bring in to the Kapuskasing property portfolio. The Newfoundland property package seemed like the right fit, and since then we have done some consolidating to the original acquisitions announced on March 1, 2017, and then more recently added the Daniel’s Harbour zinc property to the property portfolio. The copper-cobalt projects are the Lady Pond property and the King’s Court property. The lack of systematic testing for cobalt gave rise to these properties being so interesting because, the few times cobalt was tested for, there were several anomalous values. I particularly like the short- and longer-term outlook for both copper and zinc, and these copper-cobalt projects also provide a polymetallic exposure that includes cobalt, gold and silver.

Isabel: Congratulations on your recent zinc property acquisition in Newfoundland, the Daniel’s Harbour property. What intrigued you about this project?

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

With breathtaking geography and bountiful geology, the Rock
and neighbouring Labrador hold potential for Kapuskasing.

Jon: The opportunity to acquire a project that was a past-producer is always an interesting one. There is an old saying in the mining business that the best place to look for a mine or a deposit is in the “shadow of a headframe.” The Mississippi Valley-type nature of these zinc deposits is also intriguing because of the difficulty in finding them. Typically they are found in an outcrop as was the case for the majority of the lenses that were mined out between 1975 and 1990. I am of the belief that there is an opportunity to find more of these lenses within the boundary of the current Daniel’s Harbour zinc property. The fact that Altius [TSX:ALS] has acquired a significant land position within the immediate area of this project only helps to reaffirm my belief. We will do some compilation of the historic work and more recent exploration on the property and incorporate some out-of-the-box thinking on how to employ some geophysics that have either not been used before or perhaps some re-interpretation. Another aspect could be a ground prospecting program that may identify an outcrop or showing on the property that has yet to be found.

Isabel: What are your exploration plans for the coming months?

Jon: Kapuskasing is currently undertaking a small financing to assist in getting things going both on the Daniel’s Harbour property and the Lady Pond copper-cobalt project. As mentioned, the first things for Daniel’s Harbour would be some data compilation and to identify some geophysical techniques to help identify some drill targets.

The Lady Pond copper-cobalt property has a drill-ready target area called the Twin Pond prospect, recently acquired to complete the consolidation of the original Lady Pond property package. We have also staked several claims to cover additional historic showings of copper-cobalt-gold and silver. The Twin Pond prospect has a non-43-101 resource of approximately one million tonnes grading 1% copper, and looks to be open in all directions. [We hope to increase this resource] with a properly designed drill program—ideally in the coming months with the right funding and availability of service companies to carry out the work.

In the immediate area of Lady Pond, there are several past-producing mines and undeveloped prospects that could turn into economic deposits…. Rambler Metals [TSXV:RAB] has several projects and properties in this area, including the Little Deer project contiguous to our Lady Pond property. There is potential with the right combination of funding and exploration success for Kapuskasing to find more than one of these deposits within the Lady Pond property, having had a good start with the Twin Pond prospect.

Isabel: How much of Kapuskasing is held by the management?

Jon: Currently insiders and parties close to the company own approximately 20% of the issued and outstanding shares. Typically the insiders participate in the financings, as will be the case in this one. We are currently looking to raise up to $750,000 in a combination of flow-through and common shares. We hope to close a first tranche financing in the coming weeks to begin deploying exploration capital.

Isabel: What is your favourite commodity besides the ones in your company?

Kapuskasing will be in a great position to take advantage of not just one but several commodity price spikes, the first of which I think will be in both copper and zinc. —Jon Armes

Jon: I do like both copper and zinc, as evidenced by the recent acquisitions. The battery technology metals are also interesting—with cobalt and lithium leading the latest charge. People forget that electricity needs copper. Wires transport the electricity from batteries and generators to the tool or outlet. I consider copper to be the most important metal for the energy metal sector. We have cobalt as a possible byproduct of the two main polymetallic projects in the Lady Pond and King’s Court projects, along with gold, silver and zinc. Kapuskasing will be in a great position to take advantage of not just one but several commodity price spikes, the first of which I think will be in both copper and zinc.

Isabel: What do you like most about your job?

Jon: I like the multifaceted aspects of running a junior exploration program; there never seems to be a dull moment. I get to meet a lot of different people in the mining and finance industry, the prospectors that generate the project ideas, and the service people that ultimately carry out the exploration of the projects with our team of geologists and technicians. The most exciting times are when we are actually carrying out a drill program. It is drilling that ultimately leads to discovery.

Isabel: That is right. Good talking to you Jon, and good luck with the drill program.

Jon: Thank you.

 

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

Jon Armes
president/CEO of
Kapuskasing Gold

Bio

Jonathan Armes, also known as Jon, has been the CEO and president of Kapuskasing Gold since February 9, 2016, and a director since October 8, 2014. Jon Armes has been a consultant of ALX Uranium since October 2016. Jon Armes served as the president/CEO of ALX Uranium (formerly, Lakeland Resources) from August 12, 2010, until October 2016. He has provided corporate development and investor relations services to mining exploration companies for over 15 years including Band-Ore Resources (which became part of Lake Shore Gold, which in turn joined Tahoe Resources TSX:THO) and Trelawney Mining and Exploration, an IAMGOLD TSX:IMG takeover. He graduated from the University of Guelph in 1993 with a Bachelor of Applied Science degree.

Fun facts

My hobbies: Fishing, hockey and music
Sources of news I use: News apps on my phone
My favourite airport: Vancouver
My favourite commodities: Copper, gold, zinc, cobalt
My favourite tradeshow: PDAC
With this person I would like to have dinner: Warren Buffet (talking about philanthropy, investing and life)
If I could have a superpower, it would be: Seeing into the future


Read more about Kapuskasing Gold.

Geophysical anomaly heightens King’s Bay interest in Labrador cobalt project

June 19th, 2017

by Greg Klein | June 19, 2017

Newly analyzed data has King’s Bay Gold TSXV:KBG planning to resume its search for copper and cobalt beside the Trans-Labrador Highway. Results from last winter’s 382-line-kilometre airborne VTEM survey over the Lynx Lake project reveal a shallow anomaly of high resistivity estimated at about 400 metres in diameter and 50 to 300 metres in depth. The finding comes from the property’s West Pit, where historic, non-43-101 grab samples assayed 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.

Geophysical anomaly heightens King’s Bay interest in Labrador cobalt project

Cutting right through the property, the highway offers year-round access to the town of Happy Valley-Goose Bay, about 1.5 hours
away. Powerlines are under construction along the northern
part of the property.

Summer plans now call for higher-resolution ground geophysics over the target area, potentially followed by overburden stripping to expose bedrock south of the pit. The crew will also follow up on historic soil sample anomalies on the property’s southeastern area. Detailed mapping and sampling will cover both areas.

Interest began in the property as the highway was being built in 2008. A contractor with prospecting experience noticed disseminated and massive sulphides beside the new route. Along with the West Pit results, grab samples east of the highway brought non-43-101 results up to 1.39% copper, 0.94% cobalt, 0.21% nickel and 6.5 g/t silver.

Lynx Lake began as a 2,000-hectare acquisition which King’s Bay expanded to about 24,000 hectares following a review of data from government regional low-resolution magnetic surveys and preliminary handheld EM surveys.

The quest for cobalt has led King’s Bay to other acquisitions. In February the company announced a 100% option on the Trump Island copper-cobalt property in Newfoundland. Earlier that month King’s Bay picked up three Quebec properties with historic, non-43-101 cobalt sampling results.

The company closed a $938,752 private placement in January.

Read about cobalt supply and demand.

See an infographic about cobalt.

Benchmark Mineral Intelligence analyst Caspar Rawles sees opportunity for new sources of cobalt despite growing reliance on Congo supply

June 15th, 2017

…Read more

Castle Silver Resources samples 1.8% cobalt and 8.6% nickel at former silver mine

June 12th, 2017

by Greg Klein | June 12, 2017

High-grade silver distracted previous operators of Ontario’s Castle mine from high-grade cobalt and nickel, says the current project operator. Among the evidence are initial chip sample results from an underground program at Castle Silver Resources’ (TSXV:CSR) property, about 80 kilometres northwest of the historic Cobalt camp. The first five samples averaged 1.06% cobalt, 5.3% nickel and 17.5 g/t silver, with the three best assays showing:

  • 1.8% cobalt, 8.6% nickel and 25.2 g/t silver

  • 1.6% cobalt, 7.6% nickel and 32 g/t silver

  • 0.81% cobalt, 5.9% nickel and 4.1 g/t silver
Castle Silver Resources samples 1.8% cobalt and 8.6% nickel at former silver mine

Pinkish alteration reveals cobalt mineralization
just inside an adit at the former Castle silver mine.

The samples were selective “and should not be considered representative of the mineralization hosted within the target area,” the company pointed out. The samples were composites taken from a 200-kilogram bulk sample extracted a short distance inside the adit.

As reported last week, the remainder will go through the company’s proprietary Re-2OX hydrometallurgical process to produce cobalt powder samples for battery manufacturers.

Castle Silver has also been testing Re-2OX for its recycling potential in recovering lithium-cobalt from Li-ion batteries. The process “is designed for high recovery of multiple metals and elements, opening opportunities that simply didn’t exist decades ago at this mine or throughout the northern Ontario silver-cobalt district,” said president/CEO Frank Basa.

The 3,252-hectare project’s former mine consists of “11 levels covering a footprint 727 metres east-west, 455 metres north-south and 258 metres deep,” he added.

Lying under much of the property is the 300‐metre-thick Nipissing diabase intrusive, which Castle Silver interprets as a potential heat source “that mobilized various metals—notably, of course, silver intimately associated with cobalt, but also gold, copper, zinc and nickel.”

Underground bulk sampling continues as the company also builds a 3D model from historic data.

With an oversubscribed second tranche that closed last month, Castle Silver has so far raised a total of $966,500 from a private placement offer that’s been increased to $1.2 million.

Castle Silver also holds a 100% option on the Beaver and Violet cobalt-silver properties hosting former mines near the town of Cobalt, 80 kilometres southeast.

Read about cobalt supply and demand.

Castle Silver Resources readies bulk cobalt extraction, end-user samples and lithium-cobalt recycling

June 6th, 2017

by Greg Klein | June 6, 2017

Pursuing the cobalt potential of a former high-grade silver mine, Castle Silver Resources TSXV:CSR keeps busy on a number of fronts. With underground bulk extraction in progress at Ontario’s Castle past-producer, the company has sent part of its first sample containing visible cobalt to an assay lab. The rest of the sample will go through the company’s proprietary Re-2OX hydrometallurgical process to produce cobalt powders for evaluation by battery manufacturers.

Castle Silver Resources readies bulk cobalt extraction, end-user samples and lithium-cobalt recycling

Previously collected samples show the pinkish cobalt
oxidation typically found on Castle Silver’s project.

Located about 80 kilometres northwest of Ontario’s historic Cobalt camp, the mine operated on and off between 1917 and 1988, producing 9.5 million ounces of silver and 299,847 pounds of cobalt. This Phase I program on the 3,252-hectare project has more bulk sampling planned, while 3D modelling is underway using the historic info.

With an eye on recycling opportunities, Castle Silver has also been testing its “highly adaptable” Re-2OX process for cobalt-lithium recovery from Li-ion batteries. Re-2OX strips battery casings to leach the cathodes and create a high-purity precipitate containing the metal. The company expects to release first-stage results soon from SGS Lakefield.

Last month Castle Silver closed an oversubscribed second tranche of a private placement that has so far totalled $966,500. The company has since raised the total offer to $1.2 million.

Within the Cobalt camp 80 kilometres southeast, Castle Silver holds a 100% option on the Beaver and Violet cobalt-silver properties.

Read about cobalt supply and demand.

Kapuskasing targets zinc past-producer to bolster Newfoundland presence

May 18th, 2017

by Greg Klein | May 18, 2017

A former zinc mine with potential for another discovery would expand Kapuskasing Gold’s (TSXV:KAP) portfolio of Newfoundland prospects for high-performing metals. Under a non-binding letter of intent announced May 18, the company would get the 1,050-hectare Daniel’s Harbour property on the Rock’s Great Northern Peninsula.

The announcement follows a recent acquisition of proximal claims by Altius Minerals TSX:ALS, but the former mine sits on property covered by the Kapuskasing deal.

Kapuskasing targets zinc past-producer to bolster Newfoundland presence

In operation from 1975 to 1990, Daniel’s Harbour produced around seven million tonnes averaging 7.8% zinc. A chief characteristic was the mine’s Mississippi Valley Type deposit, a kind that characteristically occurs in clusters or districts, Kapuskasing stated. “There remains potential in the area of the old mine workings of the historic ore bodies continuing at depth or along the favourable breccia horizon,” the company added.

Subject to due diligence and approvals, the 100% acquisition calls for $60,000, 1.75 million shares and $100,000 of spending within two years. A 3% NSR applies, two-thirds of which can be bought back for $2 million. Should Kapuskasing define a resource of five million tonnes at a grade to be determined, the vendor gets a $50,000 bonus.

The news comes amid a busy few months as Kapuskasing collects properties in Newfoundland and Labrador. The company began in March with the acquisition of eight properties offering potential for copper, cobalt or vanadium. Among the standouts is Lady Pond, which an LOI announced last week would expand to 1,625 hectares covering historic mine workings. Surface grab samples graded up to 3.3% copper, 0.12% cobalt and 813 ppb gold.

While previous operators focused on copper, Kapuskasing sees potential for other metals including cobalt. The company has drilling planned later this year.

Another recently expanded March acquisition is King’s Court, now 2,275 hectares covering at least 10 copper showings at surface. Historic channel samples included 14% copper over three metres, 9.3% over 10 metres, 19% over 2.13 metres and 15.87% over 2.59 metres, along with cobalt samples up to 0.24%. The company has sent a 4.79-metre section of drill core to be re-assayed for cobalt and other elements.

Additional acquisitions bring with them historic, non-43-101 results:

  • Alexis, with grab samples up to 0.422% nickel and 0.822% cobalt

  • Cape Charles, with grab samples up to 1.12% copper, 0.47% nickel and 0.526% cobalt

  • Hayes, with a reported 27,000 tonnes averaging 54% iron, 9% titanium and 0.2% vanadium

  • Indian Head, with two dormant mines and iron-titanium-vanadium mineralization

  • Iron Mountain, with grab samples up to 39.8% iron and 0.26% vanadium

  • Ross Lake, with drill intercepts of 21.49% titanium dioxide, 0.24% vanadium and 0.16% chromium oxide over 13 metres; as well as 15.9% titanium dioxide, 0.2% vanadium and 0.13% chromium oxide over 11 metres

Again, those are historic, non-43-101 results.

With Daniel’s Harbour and Lady Pond as dual flagships, Kapuskasing has a busy year planned. Last month the company offered private placements totalling up to $750,000, including up to $250,000 in flow-through.