Cobalt
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https://www.bbc.com/news/magazine-27829874
Kapuskasing to acquire eight properties in Newfoundland
2017-03-01 10:38 ET - News Release
Mr. Jonathan Armes reports
KAPUSKASING GOLD TO ACQUIRE STRATEGIC PORTFOLIO OF COPPER/COBALT AND VANADIUM PROPERTIES IN NEWFOUNDLAND & LABRADOR
Kapuskasing Gold Corp. has signed a non-binding letter of intent to acquire (through asset purchase) a 100-per-cent interest in eight separate properties located in the province of Newfoundland and Labrador. The properties are being acquired for their battery technology metal potential -- more specifically, cobalt and vanadium. Five of the properties are located on the island of Newfoundland and three are in Labrador. The province has maintained its reputation as being one of the best jurisdictions for new discoveries in Canada and for maintaining a very friendly pro-mining environment and an excellent rebate system to explorers.
The acquisition of these eight projects positions the company and its shareholders in the battery technology metals sector. Management believes that supply and demand dynamics are suggesting shortfalls in both cobalt and vanadium in the coming years. Several of the properties are known to host cobalt, copper and/or vanadium mineralization and several benefit from historical exploration, including channel sampling and diamond drilling.
The properties are termed the Kings Court project (copper and cobalt), the Lady Pond project (copper, cobalt, gold and silver), the Alexis project (cobalt), the Cape Charles project (cobalt), the Hayes project (vanadium), the Indian Head project (vanadium), the Iron Mountain project (vanadium) and the Ross Lake project (vanadium).
Some historical exploration highlights (from a mineral deposit database system report from Newfoundland and Labrador's Department of Natural Resources website) of the key projects include:
- Kings Court: Copper assays were realized from both channel samples and drilling. Values of up to 0.13 per cent cobalt were reported although quoted analysis for cobalt is limited. Significant exploration highlights of the property include: channel samples of 19 per cent copper over 2.13 metres and 15.87 per cent copper over 2.59 metres, a drill hole with 12.6 per cent copper over 1.52 metres, and a chip sampling of 7.75 per cent copper over two metres. The property hosts at least eight different copper showings with significant surface results. Compilation of historical data will guide a detailed sampling program to evaluate the cobalt and copper potential.
- Lady Pond: Surface grab samples returned up to 3.3 per cent copper, 0.12 per cent cobalt and 813 parts per billion gold. Drilling carried out by Falconbridge in 1969 had results of up to 6.35 per cent copper and up to 0.2 per cent cobalt. This project will also undergo a more systematic sampling and testing program for cobalt.
- Alexis: There has been little work done, but grab samples of up to 0.422 per cent nickel and 0.822 per cent cobalt are reported.
- Cape Charles project: There has been little work done. Grab samples of up to 1.12 pe cent copper, 0.47 per cent nickel and 0.526 per cent cobalt are reported.
- Hayes project: This project consists of three non-contiguous claims covering the Bishop No. 3 property, the Hudson prospect and the Hayes prospect. The Hayes prospect hosts a historical (non-NI 43-101-compliant) deposit reported to contain 27,000 tonnes of 54 per cent iron, 9 per cent titanium and 0.2 per cent vanadium.
- Indian Head project: This project includes the dormant Indian Head mine and Skindles mine. The Indian Head mine was reported to contain a mineralized zone of 20 per cent iron, 0.5 per cent titanium and 1 per cent vanadium (not verified).
- Iron Mountain project: There has been little work completed; however, selected grab samples carried up to 39.8 per cent iron and 0.26 per cent vanadium.
- Ross Lake project: Historical drill holes RL-1 and RL-2 intersected massive to disseminated titanium-rich oxides hosted in coarse-grained anorthosite, with significant values in chromium and vanadium. The oxide mineralization is massive and coarse grained, with results including 13 metres averaging 21.49 per cent titanium dioxide, 0.24 per cent vanadium and 0.16 per cent chromium oxide. A second hole drilled 150 metres to the northeast intersected 11 metres of massive oxides grading 15.90 per cent titanium dioxide, 0.20 per cent vanadium and 0.13 per cent chromium oxide (reference: (1997): report of exploration activities for 1996, Harp Lake area, Labrador, province of Newfoundland, Canada; Tanqueray Resources Ltd. (GSB No. LAB/1340)).
The company has signed a non-binding letter of intent whereby Kapuskasing can purchase a 100-per-cent interest in all of the properties for total consideration of 7.5 million shares, and a $5,000 one-time cash payment. The vendors shall retain a 3-per-cent net smelter royalty (NSR) interest, or where applicable, a 3-per-cent net profit royalty (NPR). The company retains the option to buy back 2 per cent of the NSR (or NPR) for $1-million. A formal option agreement will follow upon completion of due diligence. Due diligence is expected to be completed by the end of March, 2017.
"These are key strategic mineral properties in one of the best mining and exploration jurisdictions in North America," stated Jonathan Armes, president and chief executive officer of Kapuskasing. "Cobalt and vanadium are minerals sought after now and may be key minerals for future years. Kapuskasing is well positioned for future growth in this sector."
Garry Clark, PGeo, exploration manager and a director of the company, and a qualified person as defined by National Instrument 43-101, has reviewed the technical content of this release. The content of the geological data presented has been derived from the province's mineral deposit database and exploration assessment files and are believed to be accurate and correct.
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