Ontario, Canada – Cobalt Properties

The Company has the option to earn a 60% interest in two principal cobalt properties, The Teledyne Cobalt Property and the Glencore Bucke Cobalt Property, in the mining favourable jurisdiction of Ontario, Canada.

Project map

Property Description

The two cobalt properties are adjacent to each other and are situated approximately 6 km east-northeast of the town of Cobalt, Ontario.  Highway 567 and a municipal road cross the Glencore Bucke Cobalt Property. The Properties are also accessible by a well maintained secondary road; 6 km from downtown Cobalt. A cobalt ore custom mill exists within 2 km of the Teledyne Cobalt Property Ramp.  Both of these infrastructure investments add considerable value to our properties and will eliminate $millions in future costs to replicate. These two cobalt properties are directly on-strike with the Cobalt Camp’s most prolific past producing cobalt mine – the Agaunico Mine.

 

The Teledyne Cobalt Property consists of 5 patented and 8 unpatented mining claims covering an area of approximately 607.1 ha, while the Glencore Bucke Cobalt Property Bucke Property consists of 1 patented mining claim covering an area of approximately 16.2 ha.  

 

The Teledyne Property is subject to a production royalty in favour of New Found Gold and an off-take agreement in favour of Glencore Canada Corp., while the Glencore Bucke Property is subject to a back-in provision, production royalty, and an off-take agreement in favor of Glencore Canada Corp.   Glencore plc is the world’s largest producer of cobalt.

Project Facts

Location:

Total Claims:

Total Area:

Description:

Cobalt, Ontario

Teledyne (13) Glencore Bucke (1)

Teledyne (607.1 ha) Glencore Bucke (16.2 ha)

  • Two properties are adjacent to one another, 6km from downtown Cobalt
  • Both properties directly on-strike with Agaunico Mine
  • Both properties accessible by a well-maintained road

Downloads

Teledyne NI 43-101 Technical Report

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Glencore Bucke NI 43-101 Technical Report

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The Surrounding Region

The properties are located within the Cobalt embayment in the Southern Province of the Canadian Shield. The Property is underlain by an undulating gabbroic intrusive sill, which in turn is underlain by Huronian Supergroup sedimentary rocks that include Gowganda Formation feldspathic quartzites, siltstones, and conglomerates.  The Proterozoic-aged sediments in turn, unconformably overlie Archean metavolcanics and metasediments.

The properties adjoin the south and west boundaries of claims that hosted the Agaunico Mine.  From 1905 through to 1961, the Agaunico Mine produced a total of 4,350,000 lbs. of cobalt (“Co”), and 980,000 oz. of silver (“Ag”) (Cunningham-Dunlop, 1979). A significant portion of the cobalt that was produced at the Agaunico Mine was located along structures that extended southward towards the northern boundary of patented claim 372, part of the Teledyne Cobalt Property.  Cobalt mineralization consisted of cobaltite and smaltite hosted within steeply dipping veins and extensive disseminations within Huronian sedimentary rocks. From 1951 through to 1957, the average Co content of the ores mined at the Agaunico Mine was approximately 0.5%. In 1955, 526,000 lbs. of Co, 146,000 oz. of Ag, 117,000 lbs. of nickel (“Ni”), and 81,000 lbs. of copper (“Cu”) were extracted from 62,000 tons of ore (Cunningham-Dunlop, 1979).

Transaction Details

Glencore Bucke Cobalt Project (Cobalt, Ontario)

The Company has entered into an option agreement with LiCo Energy Metals Inc. (TSXV: LIC) on May 8, 2018 to earn a 60% ownership in the Glencore Bucke Property, situated in Bucke Township, 6 km east-northeast of Cobalt, Ontario, subject to a back-in provision, production royalty and off-take agreement with Glencore Canada Corp.  Strategically, the Glencore Bucke Property consists of 16.2 hectares and sits along the west boundary of the Company’s associated Teledyne Cobalt Project. The Property covers the southern extension of the #3 vein that was historically mined on the neighbouring Cobalt Contact Property located to the north of the Glencore Bucke Property. Diamond drilling in 1981 on the Glencore Bucke Property delineated two zones of mineralization measuring 150m and 70m in length.

Teledyne Cobalt Project (Cobalt, Ontario)

The Company has an option agreement with LiCo Energy Metals Inc. (TSXV: LIC) on May 8, 2018 to earn a 60% ownership, subject to a production royalty with New Found Gold and off-take agreement with Glencore Canada Corp., in the Teledyne Project located near Cobalt. Ontario. The Teledyne Cobalt Property adjoins the south and west boundaries of claims that hosted the Agaunico Mine. From 1905 through to 1961, the Agaunico Mine produced a total of 4,350,000 lbs. of cobalt and 980,000 oz. of silver. A significant portion of the cobalt that was produced at the Agaunico Mine located along structures that extended southward onto the Teledyne Cobalt Property. Recently,  a total of 11 diamond drill holes totaling 2,200 m was completed in the fall of 2017. The drilling has confirmed cobalt mineralization present on the Property which is consistent with historical grades as reported historically by Cunningham-Dunlop (1979) and Bressee (1981), disclosed in earlier news releases. These reports are available in the public domain through MNDM’s AFRI database.

NI 43‐101 Reports for both, the Teledyne and Glencore Bucke Properties, are publicly available on www.sedar.com, as well as on this website.  The recently completed diamond drilling program conducted on these Properties (September to December 2017) consisted of both twinning and infill drilling of the historical drill holes located on both the Teledyne and Glencore Bucke Cobalt Properties.

 

2018 Proposed Exploration Program

Glencore Bucke Cobalt Project

A surface exploration work program including geological mapping and prospecting is recommended to further evaluate the geological potential of the Property. Management believes that potential remains on the Property for the discovery of parallel mineralized zones to that of the Northwest and Main zones.

A two-phase drilling program of up to 4,000 m of diamond drilling program has been planned to continue to test the mineralization along strike of the Northwest and Main zones along strike to the south, with the intent of completing a 43-101 compliant resource estimate upon its completion, as well as testing any other targets that may be generated from the surface mapping and prospecting programs.

Teledyne Cobalt Project

A surface exploration work program including geological mapping, prospecting, and mechanized stripping is recommended for the Property. Planned work will compile and evaluate historical showings and past exploration work to generate exploration targets on both the unpatented and patented mining claims. As at Glencore Bucke, management believes that potential remains the west of the Teledyne Main Zone for the discovery of parallel mineralized zones.

A two-phase drilling program of up to 1,500 m has been planned to extend the known mineralization on the Main Zone and follow up on targets generated from the Phase 2 surface exploration program.

The proposed multi-phase diamond drilling programs follow up the successful completion of the Teledyne & Glencore Bucke Phase 1 diamond drilling programs during the fall of 2017. Here, LiCo Energy Metals Inc. completed a combined 32 diamond drill holes totaling over 4,100 m of drilling with results published by the Company on January 26th, 2018 (Glencore Bucke Phase 1 Summary) and March 8th, 2018 (Teledyne Phase 1 Summary).

Mr. Tim Fernback, Director of Surge Exploration comments “Now that we have all the results tabulated from the successful Phase 1 exploration programs at Glencore Bucke and Teledyne, additional drilling exploration programs on both Properties that assist the Projects in progressing towards completing a 43-101 Compliant resource estimation on both Properties. The Phase 1 diamond drill programs were designed to confirm and extend the existing known mineralization along strike and up and down dip, and they successful in completing this objective. We are very excited about commencing our proposed multi-phase phase diamond drilling on both the Teledyne and Glencore Bucke properties for 2018 and 2019.”

Early Exploration History

Teledyne Cobalt Property – Historical Exploration

In 1953, Big Agaunico Mines Ltd. carried out a drilling program on a portion of the Teledyne Cobalt Property to locate the extension of the south-striking Agaunico cobalt-rich Vein 15.  Drill holes No. 8 and No. 12 intersected 0.58% Co over 5 ft (1.5 m), and 0.46% Co over 3 ft (0.9 m) respectively. These intersections, located 350 ft (106.7 m) and 600 ft (182.9 m) south of the northern claim boundary of claim 372, confirmed the likely extension of the Agaunico cobalt zone (Vein #15) onto the Property (Cunningham-Dunlop, 1979).

In 1979, Teledyne Canada Ltd. (“Teledyne”) completed six surface diamond drill holes and encountered a zone of cobalt mineralization that extended 640 ft (195 m) south from the claim boundary.  

In 1980, Teledyne completed a 10 ft (3.0 m) by 13 ft (4.0 m) access decline at a decline of -15 degrees for length of approximately 2,300 ft (701.0 m) to facilitate underground exploration of the mineralization zone encountered in their surface diamond drilling program.  A total of 6,167 ft (1,879.7 m) of underground diamond drilling was completed in 22 drill holes (Bresee, 1981). The drill program confirmed the extension of the Agaunico cobalt zone onto claim 372 for a strike length of 500 ft (152.4 m). The drill program also encountered a second zone with a strike length of 450 ft (137.2 m).  The most significant results included 0.64% Co over 55.3 ft (16.9 m), 0.74% Co over 28.6 ft (8.7m), and 2.59% Co over 8 ft (2.4 m). The aforementioned widths represent drill intersected widths, not true widths.

Based on the surface and underground diamond drill programs, historical reserves of 60,000 tons in the geologically inferred category, and 40,000 tons in the probable category, at an average grade of 0.45% Co, 0.6 oz/t Ag was estimated (Linn, 1983).

Of note, the reserve estimate is a historical estimate as defined by National Instrument 43-101. The historical reserve contains categories that are not consistent with current CIM definitions.  A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. No attempt was made to reconcile the historical reserve calculations as reported by Teledyne Tungsten.  Surge Exploration Inc. is not treating the historical reserve estimate as a current mineral resource or mineral reserve.

Glencore Bucke Cobalt Property – Historical Exploration

In 1981, Teledyne leased mining claim 585 (“Glencore Bucke Property”) from Falconbridge Nickel Mines Ltd., as the company recognized the significant exploration potential that the Property had due to the possible southern extensions of the Cobalt Contact veins on mining claim T43819 that projected southward onto the Property.  

In the same year, Teledyne completed 36 diamond drill holes totalling 10,903 ft (3323.3 m) on the Property, and delineated two mineralized zones, named the Main Zone and Northwest Zone, measuring 500 ft (152.4 m) and 200 ft (70.0 m) in length respectively (Bresee, 1982).  

Based on the surface drill program completed by Teledyne, historical reserves of 60,000 tons in the geologically inferred category, and 15,000 tons in the probable category, at an average grade of 0.45% Co, 3.0 oz/t Ag was estimated (Linn, 1983).

Of note, the reserve estimate is a historical estimate as defined by National Instrument 43-101. The historical reserve estimate contains categories that are not consistent with current CIM definitions.  A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. No attempt was made to reconcile the historical reserve calculations as reported by Teledyne Tungsten.  Surge Exploration Inc. is not treating the historical reserve estimate as a current mineral resource or mineral reserve.

Drilling History

Teledyne Cobalt Property

During the fall of 2017, an exploration program was completed with 11 diamond drill holes totaling 2,204 m on the Teledyne Cobalt Property.  This Phase 1 diamond drill program was designed to confirm and extend the existing known mineralization along strike, and up and down dip. The program tested the Teledyne Zone for a strike length of approximately 220 m.  

Significant cobalt mineralization intersected in the Phase 1 diamond drilling program include:

  • TE17-01 0.62% Co over 6.00 m from 136.00 to 142.00 m including 3.92% Co over 0.75 m from 140.25 to 141.00 m.
  • TE17-02 0.95% Co over 1.9 m from 143.0 to 144.9 m, incl. 2.58% Co over 0.60 m from 144.30 to 144.90 m.
  • TE17-02 0.59% Co over 3.9 m from 156.0 to 159.9 m, incl. 2.22% Co over 0.60 m from 156.6 to 157.2 m.
  • TE17‐04 1.82% Co over 6.00 m from 138.00 to 144.00 m, including 5.06% Co over 1.75 m from 141.25 to 143.00 m.
  • TE17‐05 2.32% Co over 4.00 m from 126.5 to 130.50 m.
  • TE17‐05 1.70% Co over 6.00 m from 136.00 to 142.00 m.
  • TE17-07 0.50% Co over 2.10 m from 127.60 to 129.70 m.
  • TE17-08 0.77% Co over 3.40 m from 169.50 to 172.90 m, including 1.17% Co over 2.00 m from 169.50 to 171.50 m.
  • TE17-08 0.59% Co over 1.20 m from 174.00 to 175.20 m.
  • TE17-08 0.62% Co over 0.60 m from 178.60 to 179.20 m.
  • TE17-11 0.54% Co over 2.00 m from 130.00 to 132.00 m.

Glencore Bucke Cobalt Property

On August 31st, 2017, an exploration program was completed 21 diamond drill holes totalling 1,913.50 m on the Property.  This Phase 1 diamond drill program was designed to confirm and extend the existing known mineralized zones on the Property.  The program tested the Main Zone for a strike length of approximately 55 m and the Northwest Zone for a strike length of approximately 45 m.  Due to the nature of the mineralization, drill holes were closely spaced apart, generally at 10 m along sections, and 12.5 m between sections on average.  

Significant cobalt intersections from the Phase 1 diamond drilling program include:

  • GB17-04 that intersected 1.62% Co, 7 ppm Ag over 0.50 m from 16.25 to 16.75 m.
  • GB17-06 that intersected 0.25% Co, 12 ppm Ag over 1.75 m from 22.50 to 24.25 m.
  • GB17-06 that intersected 4.45% Co, 34.2 ppm Ag over 0.30 m from 44.40 to 44.70 m.
  • GB17-07 that intersected 1.11% Co, 17.6 ppm Ag over 2.00 m from 98.5 to 100.50 m.
  • GB17-10 that intersected 0.55% Co, 0.8 ppm Ag over 5.00 m from 28.00 to 33.00 m.
  • GB17-13 that intersected 0.46% Co, 132.5 ppm Ag over 0.90 m from 77.60 to 78.00 m.
  • GB17-13 that intersected 0.55% Co, 16.9 ppm Ag over 0.60 m from 100.80 to 101.40 m.
  • GB17-15 that intersected 0.55% Co, 2.1 ppm Ag over 0.90 m from 27.50 to 28.40 m.
  • GB17-15 that intersected 8.42% Co, 136 ppm Ag over 0.30 m from 62.40 to 62.70 m.  
  • GB17-18 that intersected 0.43% Co, 86.8 ppm Ag over 0.90 m from 80.10 to 81.00 m.
  • GB17-19 that intersected 0.75% Co, 111.1 ppm Ag over 0.60 m from 46.00 to 46.60 m.
  • GB17-20 that intersected 0.44% Co, 19.4 ppm Ag over 4.05 m from 60.25 to 64.30 m.
  • GB17-21 that intersected 0.73% Co, 50.0 ppm Ag over 0.60 m from 69.70 to 70.30 m.

Significant copper-lead-zinc mineralization was also intersected.  The mineralization is associated within or adjacent to the cobalt-silver bearing veins, and as separate zones within the metavolcanics and metasediments.  These zones deserve some further investigation as to their possible economic potential. Significant copper-lead-zinc intersections include:

  • GB17-03 that intersected 1.03% Cu, 0.02% Zn, 0.069% Pb over 2.50 m from 38.50 to 41.00 m.
  • GB17-15 that intersected 0.90% Cu, 0.26% Zn, 0.47% Pb over 20.20 m from 42.50 to 62.70 m.
  • GB17-21 that intersected 1.25% Cu, 0.04% Zn, 0.05% Pb over 6.10 m from 67.50 to 73.60 m.

The aforementioned intervals represent core lengths, and not true widths.  

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