The Canadian Cobalt Project

PROJECT INFORMATION

INTRODUCTION

The Canadian Cobalt Project consists of 43 unpatented mining claims and 1 mining lease on patented land covering approximately 7,567 ha (18,700 acres) located in the Silver Center of the Cobalt Camp, Ontario.

This claim group is within close proximity to several historic mines, including the former producing Keeley and Frontier mines in the South Lorrain Township, Ontario, as well as the recently announced First Cobalt/Cobalt One lands. The Keeley and Frontier mines produced more than 19 million oz of silver and 3 million lbs of cobalt over their 60 years of mine life.

Located on Canadian Cobalt property, the Silver Eagle mine (which operated around 1918) produced 8,000 oz of silver from a 6-meter section of mine workings that crossed the property from the adjacent Wettlaufer Mine (cobalt was not recovered, as was typical for that era). This historic production proves to be one of the most prolific within the Silver Center.

GEOLOGICAL SETTING

The properties are generally underlain by Huronian Cobalt Group metasediments with abundant occurrences of the Nipissing diabase sill/dyke.  Both the upper and lower contacts of the sill occur on the property.  The Cobalt Group metasediments include quartzites and arkoses of the Lorrain Formation, as well as significant outcrops of siltstones and greywackes of the Coleman Formation, which are locally in contact with the base of the sill.

There are several known cobalt occurrences found on the land package - all reported in the Ontario Mineral Deposit Inventory files:

•        Labine-McMahon showing - samples collected from a quartz-carbonate vein adjacent to an aplite dike contain cobaltite, arsenopyrite and bismuthinite.  An assessment of the heavy material after a partial separation from the gangue returned: 32.54% As, 4.85% Fe, 21.09% Co, 1.18% Ni, 6.26% Bi and 0.09% Zn.  A sample of wall rock adjacent to a ¾” wide quartz-carbonate vein assayed 1.10% Co and 0.21% Ni.  Sample was collected in 1956 and assayed by the Cobalt Resident Geologist.

•        Friday Creek showing - government reports show “a 20cm quartz-calcite veins with 17 g/t Ag, in Nipissing diabase.”

The mining lease on the Canadian Cobalt Project is the Silver Eagle property.  Located on this property, the Silver Eagle mine (which operated around 1918) produced 8,000 ounces of silver from a 6-meter section of mine workings that crossed the property from the adjacent Wettlaufer Mine (cobalt was not recovered, as was typical for that era).  Geological mapping shows the claim to be underlain by the Nipissing diabase sill in contact with “undifferentiated” intermediate to mafic volcanics, basalts and pillow lavas.  This is the classic setting for Cobalt Camp mineralization.