PROJECT INFORMATION

Location of the Smith Cobalt Project in Cobalt, Ontario, Canada on the border to Quebec, approximately 420 km north of Toronto or 370 KM NORTH-WEST OF OTTAWA.

Location of the Smith Cobalt Project in Cobalt, Ontario, Canada on the border to Quebec, approximately 420 km north of Toronto or 370 KM NORTH-WEST OF OTTAWA.

INTRODUCTION

The Smith Cobalt Project is comprised of 14 patented claims and 10 staked mineral claims covering 2,134 acres (863.6 ha). 

Immediately to the west of the Smith Cobalt property is the historic Deer Horn mine, also known as the Cross Lake O'Brien mine.  Up to 1966, the mine is reported to have produced approximately 11 million ounces of silver and 100,000 pounds of cobalt.  Several of these Ag-Co producing veins extend onto the property and were encountered in the underground workings with associated cobalt and nickel values.

There are several historic mine shafts on the Smith Cobalt, Kirk Lake property, and it's extension.  The Kingston property is located immediately to the west of several historic mine sites which each contained a multitude of veins. The Bende property contains known historical workings, including two mine shafts, three identified veins, and a trench.

The Smith Cobalt Property & Extensions:

The Smith Cobalt property consists of nine patented mining claims, covering 177.7 acres (72 ha) and two extensions covering 80 acres (32 ha).  The property is located approximately 4 km SE of Cobalt, Ontario and can be accessed from Hwy 11 and by historic mine access roads.

The Proteus Property:

The Proteus property consists of three staked mining claims, covering a total of  360 acres ( 144 ha).  It is located approximately 5 km SE of Cobalt, Ontario and is contiguous with the Smith Cobalt asset.  The Proteus can be accessed from Hwy 11 and then by historic mine access roads. 

The Kirk Lake Property & Extension:

The Kirk Lake property covers a total of  1180 acres ( 472 ha) with it's extension covering 92 acres (37 ha).  The property is located approximately 5 km SE of Cobalt, Ontario and is contiguous with the Proteus asset.  Kirk Lake can be accessed from Hwy 567 and then by historic mine and logging access roads.

The Bende and Kingston Properties:

The Bende and Kingston properties consist of 1 and 3 patented claims respectively and cover a total of 220 acres (89 ha).  Access is through paved roads. 

The Coleman Township Properties:

Located in the northeast corner of the township, Coleman Township parcels are contiguous with the Company’s Kingston Block as well as with several staked claims in the immediate area. The properties contain the historic Cobalt Twentieth Century Mine (also known as Silver Monarch) and workings - including three shafts that were sunk between 1908 and 1926, and about 400 feet of lateral development. Additionally, 10 historic drill holes are found on the properties. 

GEOLOGICAL SETTING

Basement rocks in the area are sequences of volcanics of Archean Keewatin age and consist mainly of mafic flows and interflow sediments.  These Archean rocks are unconformably overlain by relatively flat-lying Proterozoic sediments.  The sediments consist of conglomerates, greywackes, and quartzites of the Coleman member: the lowermost member of the Gowganda Formation of the Cobalt Group within the Huronian Supergroup.  The Archean and Proterozoic rocks were intruded by the Nipissing diabase sill.

Silver-cobalt mineralization typically occurs in steeply-dipping carbonate veins.  The better values are found where these veins cut Coleman sediments and/or are close to the Archean contact with the Nipissing diabase.  Historically, in the Cobalt area, most of the Ag-Co has been produced from veins within the Coleman sediments.  More recently, the lower diabase-volcanics contact has become increasingly important as a host for significant mineralization.

Immediately to the west of this property is the historic Deer Horn mine (also known as the Cross Lake O’Brien mine).  Up to 1966, the mine produced approximately 11 million ounces of silver and 100,000 pounds of cobalt (Ontario Dept. of Mines, Mineral Resources Circular No, 10, “Silver Cobalt Calcite Vein Deposits of Ontario,” A. O. Sergiades, 1968).  Several of the producing veins extend onto the Smith Cobalt property.

A model for Ag-Co mineralization in the area has been proposed by E. G. Potter and R. P. Taylor (Genesis of Polymetallic Vein Mineralization in the Paleoproterozoic Cobalt Embayment, Northern Ontario. Implications for Metallogenesis and regional Exploration, 2010, in GeoCanada 2010 – Working with the Earth), consisting of three phases:

1.  Heat released by the Nipissing Diabase intrusive event caused regional metamorphism at ca 2.2 Ga

2.  Genesis of regionally-distributed, discordant, polymetallic vein mineralization through the interaction of the oxidized basin fluids with both fluid- and solid-reducing components of the basement, facilitated by localized displacement of the Huronian-Archean unconformity along reactivated faults

3.  Hydrothermal remobilization of at least some of the vein components, notable Pb, in association with regional Na- and K-metasomatic events ca 1.7 Ga.

PROJECT GEOLOGY

Most of the Smith Cobalt property is underlain by the Nipissing diabase sill (approximately 250 ft thick), except for an area of Keewatin volcanics which outcrop in the SE of the property.  The Nipissing diabase is underlain by conglomerates of the Huronian Coleman formation, and then by the Keewatin volcanic basement rocks.

Four steeply dipping veins with associated cobalt and nickel values were encountered in the underground workings.  In addition, at least two near-horizontal faults were encountered in old workings (Summary Report Phaeton Exploration Ltd, C. W, Archibald, May 7, 1985).

The presence of the Nipissing diabase and Coleman conglomerates, along with the faulting and mineralized veins encountered in underground workings, clearly indicate the potential to meet all three phases of the Potter-Taylor model (see above).  In addition, the presence of galena may be indicative of hydrothermal remobilization, as indicated in the proposed model.

EXPLORATION- SMITH COBALT PROJECT

SURFACE SAMPLING:

Ten samples were taken from a muck pile (loose ore that has been fragmented as a result of drifting along the veins) originating from historic underground workings.  The muck pile covers an area approximately 50 x 20 m, with a thickness of 3 - 4 m and is estimated to contain 5,000 - 10,000 tonnes of crushed rock.  The samples were gathered using a semi-regular grid pattern by digging into the pile to a depth of roughly 30 cm and are considered to be representative of the bulk of the material within the pile. As well, two rock samples were collected from a vein uncovered while clearing vegetation around the historic Smith Cobalt shaft.  All samples were analyzed at SGS Canada Inc. (Burnaby, British Columbia) using 4-acid digestion with an atomic emission spectroscopy finish. 

SMITH COBALT PROPERTY SAMPLE RESULTS – COBALT, ONTARIO

Sample #

Sample Type

Cobalt (Co) %

Silver (Ag) g/t

Copper (Cu) %

Nickel (Ni) %

289951

Muck

0.23

4.91

0.11

0.11

289952

Muck

0.68

6.98

0.24

0.28

289953

Muck

0.56

8.29

0.17

0.24

289954

Muck

0.09

1.69

0.12

0.04

289955

Muck

0.68

5.77

0.22

0.29

289956

Muck

0.50

4.39

0.19

0.17

341678*

Muck

0.62

9.41

0.20

0.31

341679*

Muck

0.33

3.83

0.18

0.12

341680*

Muck

0.31

5.52

0.11

0.09

341681*

Muck

0.99

4.70

0.01

0.34

Muck Average

-

0.50

5.55

0.16

0.20

289958

Rock

7.85

118.00

0.06

5.46

289959

Rock

3.77

60.2

0.12

2.18

Rock Average

-

5.81

89.1

0.09

3.82

AIRBORNE GEOPHYSICAL SURVEY:

The airborne geophysical survey comprised 885 line kilometers of Quadrimag (an advanced 4-sensor magnetometer array) and VLF-EM.  It was flown using 50-metre spaced north-south lines, with tie lines at 1 km spacing, draping the surface topography at an average elevation of 40 metres.  Based on an average speed of 110 km/h and a sampling frequency of 10 Hz, data samples were recorded at intervals of approximately 3 metres. 

Results indicate that major structures in the project area exhibit a general spatial relationship to known mineralized veins in the region.  This data will help the company develop the best exploration plan for the Smith Cobalt Project including ground geophysics, mapping, and sampling, followed by target delineation and drilling. 

Key Airborne Geophysical Highlights:

  • Numerous contact zones are clearly visible in the magnetic data defining a complex network of interwoven, regional formations.  Structurally, the area is dominated by a major NW-SE striking fault, well defined in both the magnetic and VLF-EM data.  This fault is accompanied by numerous additional, more local, faults throughout the area of the survey.  In general, features of interest are subtle trends in the magnetic data that occur in proximity to regional contact zones.
  • The survey identified several areas where geologic structures (from the magnetometer data) correlate with the presence of near-surface conductivity (from the VLF-EM data).  Such areas could represent the presence of sulphide mineralization within Five-Element (Ni-Co-As-Ag-Bi) Vein deposits.
  • Of particular interest is the interpretation of magnetic lineaments showing a relationship between magnetic ridges (interpreted structures) and the location of historical known mineralized veins.

View the full Cobalt Power Group Geophysical Survey Report here.