Tuesday 16th January 2018

Resource Clips


Posts tagged ‘Castle Silver Resources Inc (CSR)’

Castle Silver Resources’ Frank Basa sees cobalt exploration bringing new interest to a former silver mine

December 12th, 2017

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Castle Silver Resources samples 4.7% at a second Ontario cobalt project

December 9th, 2017

by Greg Klein | December 9, 2017

Recent work at the former Beaver mine shows why some Ontario silver past-producers have attracted Castle Silver Resources TSXV:CSR in its quest for cobalt. An initial field program collected three composite samples averaging 4.68% cobalt, 3.09% nickel, 46.9 g/t silver and 0.08 g/t gold.

Castle Silver Resources samples 4.7% at a second Ontario cobalt project

The individual breakdowns come to:

  • 4.746% cobalt, 3.985% nickel, 37.4 g/t silver and 0.06 g/t gold

  • 4.743% cobalt, 4.624% nickel, 26.9 g/t silver and 0.09 g/t gold

  • 4.554% cobalt, 0.676% nickel, 76.5 g/t silver and 0.09 g/t gold

The three composites came from selected hand-cobbed material gathered at surface and weighing a total of 38.7 kilograms. The samples don’t necessarily reflect the property’s mineralization, Castle Silver cautioned.

Located near the town of Cobalt and within the eponymous camp known for high-grade silver, Beaver shows similarities to Castle, another former silver mine and the company’s flagship, 80 kilometres to the northwest. Last week the company released assays from underground mini-bulk sampling at Castle that graded up to 3.1% cobalt. In November Castle Silver announced a drill intercept of 1.55% cobalt over 0.65 metres from the same property, the first assay from a summer drill program that sunk 22 holes totalling 2,405 metres. More assays are pending for both surface drilling and underground sampling.

The company also holds the former Violet silver-cobalt mine proximal to Beaver.

Noting an obvious discrepancy between Castle Silver’s moniker and its commodity of choice, president/CEO Frank Basa said the February AGM will consider a name change to “further build CSR’s brand in the Canadian cobalt sector with the company holding unique competitive advantages in the northern Ontario Cobalt region, including underground access at Castle and a proprietary metallurgical process (Re-2OX).”

Castle Silver Resources grades 3.1% cobalt from underground sampling in Ontario

December 1st, 2017

by Greg Klein | December 1, 2017

Historically the northeastern Ontario region was known for a precious metal but more recent activity focuses on an energy metal. Cobalt sampling from a former mine “supports our original thesis that past operators may have left much behind at Castle in their strict focus on mining high-grade silver,” stated Castle Silver Resources TSXV:CSR president/CEO Frank Basa. On December 1 the company released more assays from ongoing underground sampling in the past-producer’s first level.

Castle Silver Resources grades 3.1% cobalt from underground sampling in Ontario

An adit seen from the Castle mine’s first of 11 levels
totalling about 18 kilometres of underground development.

Results for two mini-bulk samples graded:

  • 3.124% cobalt, 21 g/t silver and 0.128% nickel

  • 1.036% cobalt, 12.7 g/t silver and 0.117% nickel

A composite from the two samples showed:

  • 2.323% cobalt, 68.7 g/t silver and 0.355% nickel

More assays are pending.

Last month Castle Silver released the first assay from a 2,405-metre summer drill program that the company said found mineralization in all of the 22 holes. The near-surface intercept graded 1.55% cobalt, 0.65% nickel, 0.61 g/t gold and 8.8 g/t silver over 0.65 metres.

Also in November the company teamed up with Granada Gold Mine TSXV:GGM to announce a provisional milling agreement for a plant that would be located on Castle Silver’s property near the town of Gowganda, about 204 kilometres by road from the Granada project. Granada has a 2014 pre-feasibility study and a June resource update.

Southeast of Gowganda and within Ontario’s Cobalt camp, Castle Silver also holds the past-producing Violet and Beaver mines.

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.

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.

September 29th, 2017

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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.

Castle Silver Resources assays more gold from Ontario cobalt-polymetallic project

August 31st, 2017

by Greg Klein | August 31, 2017

Phase I surface drilling originally planned for 1,500 metres has wrapped up on 22 holes totalling 2,405 metres as Castle Silver Resources TSXV:CSR sees new polymetallic potential from a former mine near Ontario’s Cobalt camp. Drill core assays are pending but re-evaluation of five chip samples ranged from 0.72 grams per tonne to 7.03 g/t gold, averaging 3.7 g/t. The original assays for the same samples, reported last June, averaged 1.06% cobalt, 5.3% nickel and 17.5 g/t silver. The samples were selected from 200 kilograms taken just inside the adit.

Castle Silver Resources assays more gold at Ontario cobalt-polymetallic project

An expanded drill program has Castle Silver Resources
anticipating results for precious, base and energy metals.

Castle Silver had the samples evaluated for gold after an 82-kilogram bulk sample of vein material showed 5.7 g/t gold, as well as 46.3 g/t silver and 1.48% cobalt in results reported last month.

More bulk sampling will follow now that IOS Services Géoscientifiques has tested the property’s vein structures with Niton portable XRF technology. The results will help identify targets for bulk sampling and underground drilling after the former mine’s drift has been rehabilitated.

Using a 14.8% cobalt concentrate produced from recently sampled material, Castle Silver plans tests with its proprietary Re-2OX hydrometallurgical process to produce cobalt hydroxide samples. The company also intends to gauge Re-2OX’s potential to recover lithium and cobalt from Li-ion batteries.

“We’re seeing the potential for a variety of mineralization types within the Castle mine, well beyond just the high-grade silver that was recovered intermittently during the 1900s,” said president/CEO Frank Basa. “CSR is well funded to carry out its plans for a strong operational finish to 2017.”

Last month the company closed a private placement of $897,500, bringing the total since March to nearly $2.6 million.

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.