Wednesday 26th July 2017

Resource Clips


Posts tagged ‘labrador’

King’s Bay prepares for Newfoundland copper-cobalt field program

July 26th, 2017

by Greg Klein | July 26, 2017

Copper-cobalt findings dating to the 19th century have King’s Bay Gold TSXV:KBG about to begin Phase I exploration on its Trump Island project off Newfoundland’s northern coast. The company has a team ready to study historic data prior to geophysics and grab sampling on the 200-hectare property. Depending on results, Phase II could incorporate drilling.

King’s Bay prepares for Newfoundland copper-cobalt field program

The property’s exploration history dates to 1863, when a Cornish miner sunk a six-metre shaft to follow a zone of massive chalcopyrite. Mineralization reportedly expanded with depth but the technology of the time prevented further excavation. Nevertheless the Cousin Jack reportedly shipped to Wales high-grade copper-cobalt material archaically recorded as “40 pounds per fathom.”

Grab samples collected near the shaft in 1999 showed historic, non-43-101 results up to 3.8% copper, 0.3% cobalt, 2.9 g/t gold and 10.9 g/t silver.

Located seven miles south of the town of Twillingate, Trump Island has boat access to a highway 1.5 kilometres away.

Last month King’s Bay reported geophysical results from another copper-cobalt project, this one along a provincial highway in Labrador. Airborne VTEM over the 24,000-hectare Lynx Lake property revealed a shallow anomaly of high resistivity about 400 metres in diameter and 50 to 300 metres in depth. The results came from the project’s West Pit, where historic, non-43-101 grab samples showed 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.

Lynx Lake’s summer agenda includes higher-resolution ground geophysics, possible stripping to expose bedrock south of the pit and follow-up work on historic soil samples on the property’s southeastern area, along with mapping and sampling over both areas.

The company’s portfolio also includes three Quebec properties with historic, non-43-101 cobalt results.

Earlier this month King’s Bay closed a first tranche totalling $316,250 of a private placement offered up to $725,000. The company expects to close the second tranche by the end of August. King’s Bay closed a previous financing of $938,752 in January.

Read about cobalt supply and demand.

See an infographic about cobalt.

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.

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.

Saskatchewan and Manitoba first and second globally as mining jurisdictions

March 1st, 2017

by Greg Klein | March 1, 2017

Saskatchewan edged one notch upwards to take first place worldwide while Manitoba soared from 19th to second in this year’s Fraser Institute survey of mining and exploration jurisdictions. Those two provinces pushed last year’s top performer, Western Australia, down to third place. Canada’s other top 10 spot went to Quebec, rising to sixth from eighth the year before. All continents but Antarctica came under scrutiny but Canadian, American, Australian and European locales monopolized the top 10.

Farther down the list, the strongest Canadian improvements were Newfoundland and Labrador, climbing to 16th from 25th, and the Northwest Territories, now 21st, previously 35th. Most disappointing were British Columbia (falling to 27th from 18th), Nunavut (31st from 23rd) and Alberta (47th from 34th).

Those findings come from the survey’s Investment Attractiveness Index, which combines two other indices—Policy Perception, a “report card” on government attitudes, and Best Practices Mineral Potential, concerning geological appeal. Representatives of 104 companies responded with their 2016 experiences in mind, giving a numerical rating to questions in several categories regarding their likelihood of investing in a particular jurisdiction. The previous year 109 companies responded.

Here’s the top 10 globally for overall investment attractiveness, with last year’s standings in parentheses:

1 Saskatchewan (2)

2 Manitoba (19)

3 Western Australia (1)

4 Nevada (3)

5 Finland (5)

6 Quebec (8)

7 Arizona (17)

8 Sweden (13)

9 Ireland (4)

10 Queensland (16)

Here are the Canadian runners-up:

15 Yukon (12)

16 Newfoundland and Labrador (25)

18 Ontario (15)

21 Northwest Territories (35)

27 British Columbia (18)

31 Nunavut (23)

40 New Brunswick (45)

47 Alberta (34)

52 Nova Scotia (59)

At least those provinces and territories steered far clear of the bottom 10, where Argentina figures prominently:

95 Mozambique (84)

96 Zimbabwe (98)

97 India (73)

98 Mendoza province, Argentina (101)

99 La Rioja province, Argentina (109)

100 Afghanistan (not available)

101 Chubut province, Argentina (104)

102 Venezuela (108)

103 Neuquen province, Argentina (93)

104 Jujuy province, Argentina (86)

“We believe that the survey captures, at least in broad strokes, the perceptions of those involved in both mining and the regulation of mining in the jurisdictions included in the survey,” stated authors Taylor Jackson and Kenneth P. Green.

Download the Fraser Institute Annual Survey of Mining Companies 2016.

King’s Bay flies geophysics over Labrador copper-cobalt project

February 28th, 2017

by Greg Klein | February 28, 2017

Following a 12-fold expansion of the property last month, King’s Bay Gold TSXV:KBG announced a VTEM survey now airborne on the Lynx Lake copper-cobalt project in southeastern Labrador. Survey operator Geotech Ltd says its proprietary system reaches more than 800 metres in depth, featuring high spatial resolution as well as a low base frequency to pass through conductive overburden. “This system is advertised to be able to delineate potential drill hole targets from the airborne results,” King’s Bay stated. The survey’s expected to wrap up by mid-April.

King’s Bay flies geophysics over Labrador copper-cobalt project

Field work revealed gossan and
massive sulphides at Lynx Lake.

Lynx Lake’s potential came to light after the Trans-Labrador Highway opened up the region in 2008. Grab samples from the 24,000-hectare property’s east side showed non-43-101 results up to 1.39% copper, 0.94% cobalt, 0.21% nickel and 6.5 g/t silver. On the west side, 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.

A regional low-res magnetic survey conducted by the province and a hand-held EM device brought preliminary indications of strong conductors in the area. A 90-minute drive from the town of Happy Valley-Goose Bay, Lynx Lake has powerlines and a highway adjacent to the property.

Two weeks earlier King’s Bay announced a 100% option on the Trump Island property in Newfoundland, where a shipment of high-grade copper-cobalt material was reportedly mined in 1863. In early February the company picked up three Quebec properties, all of which had historic, non-43-101 sampling results showing cobalt.

King’s Bay closed a $938,752 private placement in January.

See an infographic: Cobalt—A precarious supply chain.

As cobalt prices soar, King’s Bay expands prospects with Newfoundland acquisition

February 16th, 2017

by Greg Klein | February 16, 2017

A name and a commodity that are both objects of feverish attention seem to meet up in Newfoundland, where King’s Bay Gold TSXV:KBG has acquired the Trump Island copper-cobalt property. A 100% option announced February 16 expands the company’s cobalt prospects in Newfoundland, Labrador and Quebec.

Back in 1863 a Cornish miner sunk a six-metre shaft to follow a zone of massive chalcopyrite. He reportedly sent a shipment of high-grade copper-cobalt ore to Wales.

King’s Bay expands cobalt prospects with Newfoundland acquisition

Grab samples collected nearby in 1999 brought historic, non-43-101 results up to 3.8% copper, 0.3% cobalt, 2.9 g/t gold and 10.9 g/t silver.

The initial King’s Bay agenda would call for additional sampling, along with mapping and a local-scale electromagnetic survey on the 200-hectare property. Successful results could bring a summer drill campaign.

Subject to approvals, King’s Bay gets Trump Island for 200,000 shares at a deemed value of $0.195 and a 2% NSR.

The boat-accessible property sits seven kilometres south of Twillingate, a town immortalized in Newfoundland’s unofficial national anthem.

In Labrador, meanwhile, King’s Bay has airborne EM planned for its Lynx Lake copper-cobalt project, where grab samples have shown non-43-101 results up to 1.39% copper, 0.94% cobalt and 0.21% nickel, as well as chromium, molybdenum and vanadium values. Last month the company expanded Lynx Lake from about 2,000 hectares to approximately 24,000 hectares.

Earlier this month King’s Bay picked up three cobalt projects in Quebec. The company closed a $938,752 private placement in January.

The acquisitions come as cobalt prices continue their meteoric rise, hitting six-year highs up to $20 a pound, reported MetalBulletin.com. That represents an approximately 50% increase since September, according to Reuters. Stating that many traders are hoarding the metal, Reuters predicted a supply deficit this year “exacerbated by an insecure supply chain. Almost 60% of the world’s cobalt lies in politically risky Democratic Republic of Congo.”

See an infographic about cobalt.

King’s Bay Gold acquires three Quebec cobalt projects

February 6th, 2017

by Greg Klein | February 6, 2017

A metal facing rising prices and supply-side risk, cobalt has drawn King’s Bay Gold TSXV:KBG to three new properties in Quebec. Previous work has shown cobalt on each acquisition.

King’s Bay Gold acquires three Quebec cobalt projects

Northeast of the Hudson Bay coast, the 875-hectare Ninuk Lake project underwent surface sampling, mapping and electromagnetics by Falconbridge in 2001. Samples from massive sulphides in outcrop found historic, non-43-101 results up to 2.6% nickel, 1.8% copper and 0.27% cobalt. Falconbridge neglected to follow up due to other discoveries that year, King’s Bay stated.

A northwestern Quebec property, the 418-hectare Broadback River project revealed several large conductors through airborne surveys in 1985. Sampling by Falconbridge from 1999 to 2000 showed historic, non-43-101 results up to 0.7% nickel, 0.3% copper and 0.09% cobalt. Drilling tested the property’s northwestern area but not the southeastern conductors.

South of Quebec City, the 179-hectare Roberge project has undergone soil sampling with historic, non-43-101 results up to 1.06% cobalt.

Now compiling data from the properties, King’s Bay plans a spring program of mapping and sampling to confirm the historic results.

Last month the company closed its acquisition of the 24,000-hectare Lynx Lake copper-cobalt project in south-central Labrador, which has airborne EM planned. Grab samples from the property’s east side brought non-43-101 results up to 1.39% copper, 0.94% cobalt, 0.21% nickel and 6.5 g/t silver. Grab samples on the west side showed non-43-101 results 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.

King’s Bay closed a $938,752 private placement in January.

See an infographic about cobalt.

Updated: Financing, permitting, 12-fold expansion bring King’s Bay closer to Labrador copper-cobalt exploration

January 17th, 2017

by Greg Klein | January 15, 2017

Update: On January 17, King’s Bay announced the expansion of its Lynx Lake property from about 2,000 hectares to approximately 24,000 hectares “to adequately cover the geological structures and geophysical signatures of interest.”

 

With a provincial permit in hand and a $938,752 private placement that closed earlier this month, King’s Bay Gold TSXV:KBG readies for airborne EM over its Lynx Lake copper-cobalt project in south-central Labrador. The survey will precede a proposed first-ever drill program for the property.

Financing, permitting bring King’s Bay closer to Labrador copper-cobalt exploration

Previous work began after construction of the Trans-Labrador Highway in 2008, which unlocked some of the region’s geology. Grab samples from a quarry on the property’s east side showed non-43-101 results up to 1.39% copper, 0.94% cobalt, 0.21% nickel and 6.5 g/t silver. Other non-43-101 grab sample results from a west-side quarry ranged 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.

Preliminary evidence of strong conductors in the area came from the province’s regional low-res magnetic surveys and a hand-held EM-16 device.

With highway and powerlines running adjacent to the property, Lynx Lake can be reached by a 1.5-hour drive from the town of Happy Valley-Goose Bay.

Cobalt, one of the energy metals essential to battery manufacture, presents especially troubling supply concerns due to the instability and human rights infractions of the metal’s largest producer, the Democratic Republic of Congo. See an infographic about cobalt’s precarious supply chain.

King’s Bay Gold to acquire never-drilled copper-cobalt property in Labrador

October 28th, 2016

by Greg Klein | October 28, 2016

An intriguing chance find has King’s Bay Gold TSXV:KBG hoping the Trans-Labrador Highway will be a road to discovery. That’s the story behind the company’s October 27 announcement of a definitive agreement to acquire the Lynx Lake copper-cobalt property in south-central Labrador.

King’s Bay Gold to acquire never-drilled copper-cobalt property in Labrador

Powerlines and the Trans-Labrador Highway
run adjacent to the Lynx Lake copper-cobalt property.

As Newfoundland was building the highway in 2008, a provincial contractor with prospecting experience noticed evidence of disseminated and massive sulphides, King’s Bay geologist/director Nick Rodway explains. Some geological sleuthing eventually drew the contractor to the property’s east side, where a quarry had been blasted for aggregate.

Grab samples assayed the following year showed non-43-101 results up to 1.39% copper, 0.94% cobalt, 0.21% nickel and 6.5 g/t silver. Regional low-res magnetic surveys undertaken by the province and preliminary work in 2014 with a hand-held EM-16 device suggest strong conductors underlying the area.

Grab samples taken on the property’s west side in 2015 brought non-43-101 results 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.

With a team returning to Lynx Lake next week, King’s Bay intends to conduct a sampling program to bring 43-101 results, along with further EM-16 surveys. Should all go to plan, airborne geophysics could follow this winter.

Open to year-round work, highway-accessible and with adjacent powerlines, the 20-square-kilometre property sits about 100 kilometres southeast of the town of Happy Valley-Goose Bay.

Subject to approvals, the acquisition costs King’s Bay $100,000 over three years and 900,000 shares over two years. On October 27 the company also announced a private placement of up to $1 million.

The news comes amid growing concerns over future cobalt supply. Nearly 60% of global production comes from the Democratic Republic of Congo, a country rife with political instability and conflict mining.

At the same time increased demand comes from “the energy storage revolution,” reports Benchmark Mineral Intelligence. Its data shows “2015 total global supply at 100,000 tpa, of this the battery market consumed 48,000 tpa.

“With a lithium-ion battery production surge well underway—and Benchmark recently revising its megafactories tracker to now 14 that are under construction ranging from three- to 35-GWh capacity—lithium-ion battery demand for cobalt is set to exceed 100,000 tpa by 2020.”