Is cobalt about to get another lift as the energy metals sector continues it’s growth cycle?
One would think so based on the activity coming out of Canada’s Cobalt, Ontario region this past week where four companies (and those are just the ones who are clients of ours) came out with work-based news.
Castle Silver (CSR.V) reported high grade cobalt just four metres from surface, with intersected mineralization in every hole of their drill program.
Frank Basa, president and chief executive officer, stated: “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. 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.”
Hole CA-17-16 showed “1.55 per cent cobalt, 0.65 per cent nickel, 0.61 gram per tonne gold, and 8.8 grams per tonne silver, over 0.65 metres at a very shallow depth of only 3.85 to 4.5 metres from surface.”
A little over, First Cobalt (FCC.V), which is due to eventually complete a merger with Cobaltech and Cobalt One, is moving forward with work rather than waiting around for documents to be processed.
- 17 muckpile locations in the southern end of the company’s property have been drone surveyed to estimate tonnage and will undergo extensive sampling before the winter months;
- Intention to gain greater insight into cobalt mineralization in the Cobalt camp and provide material for early metallurgical testing;
- Ore sorting technology will be tested on large representative samples to produce higher grade feed material;
- Program results will allow the company to assess opportunities for early cash flow from muckpile processing.
[…] To date, 17 selected muckpiles have been surveyed using aerial drone technology to determine volume, which will then be used to estimate tonnage. Sampling is expected to take up to three weeks and sample preparation and analysis will take a further six weeks. The company intends to deliver a final report in the form of a National Instrument 43-101 potential resource in 2018.
The kicker, and why now is a good time to consider the stock:
Following completion of the mergers with Cobalt One and CobalTech in approximately three weeks, First Cobalt will own more than 50 historic mining operations in the Cobalt camp. Nearly all of these historic underground silver mines have material sitting on surface previously considered waste rock.
Over at Cobalt Power Group’s (CPO.V) Smith Project, we see much of the same success rate in their phase 1 9-hole, 6,220-foot drill program.
- Several zones with high-grade cobalt and silver were intersected;
- Thick, highly anomalous zones of battery-related component metals (copper, nickel and zinc) were intersected in multiple holes;
- Multiple mineralized veins were intersected in most holes;
- Confirmed and characterized vein swarms mapped from historical mine workings;
- Confirmed that the Smith cobalt property lies in the same stratigraphic and structural setting as the nearby Deer Horn mine, owned and formerly operated by Agnico Eagle.
CPO found 1.71% cobalt and 42.5 gms per tonne of silver in hole 17-03, and copper, zinc, nickel and lead beyond that. Their phase II program has been completed, so 16 more holes are due back soon.
Finally, LiCo Energy (LIC.C) has completed 27 drill holes on its properties for a combined depth of 3,106 metres. The first five holes were summarized earlier this month, with a 1.6% grade cobalt recovered on hole GB17-04.
If you’re not sure what any of this means, that’s okay. What’s important is all hands are on deck, drills are being plunged, drones are flying over, trenches are being dug, muckpiles are being demucked and competitors are merging.
The Cobalt, Ontario area play is go.
— Chris Parry
FULL DISCLOSURE: Every company in this article is an Equity.Guru marketing client
As reported by newswire.ca ‘Castle Silver Resources Inc. (TSX.V: CSR, OTC: TAKRF, FRANKFURT: 4T9B) (the “Company” or “CSR”) is pleased to announce the name change to Canada Cobalt Works Inc. which will more accurately reflect the direction of the Company. The TSX Venture Exchange has confirmed that shares will commence trading effective, Friday, February 23, 2018 under the new ticker symbol “CCW”. The tickers for OTC: TAKRF and Frankfurt: 4T9B are the same and will not be changed at this time.’