On October 16th, 2015 Canada Cobalt Works, (then Castle Silver Resources Inc.) entered into an assignment agreement with Gold Bullion Development Corp. (now Granada Gold Mine Inc.) granting Canada Cobalt the right to acquire a 100% interest in the Beaver and Violet cobalt/silver properties located in the township of Coleman in northeastern Ontario Canada near Cobalt Ontario. The properties are located roughly 80 km southeast of the former producing historic Castle Mine at Gowganda, Ontario. In return, the Company agreed to pay Granada Gold Mine Inc. $75,000.
BEAVER HISTORY & GEOLOGY
The Beaver property consists of one single 20-acre patented mining claim and includes surface and mineral rights. The physical location of the property is near the town of Cobalt specifically, N part, NW1/4, N1/2 Lot 1, Concession III in Coleman Township.
Beaver Consolidated Mines Ltd. produced 221.7 tonnes silver (7,127,858 ounces) from the Beaver Property between 1907 and 1940. According to historical records, the silver was mined from near-vertical Ag-Co-Ni veins near the upper contact of a shallow Nipissing diabase intrusive. This intrusive crosscuts Archean age sedimentary and volcanic rocks. The Beaver mine also produced 140,000 pounds of cobalt at an average of 1.4 pounds per tonne during this same period. Source: Sergiades, 1968.
Beaver Consolidated Mines Ltd. originally worked the Beaver Mine between 1907 and 1940 developed by two shafts with the deepest at 487.7 metres, (1600 feet) plus 8.5 miles of drifts and crosscuts. The vein system on the Beaver property extends south into the adjacent Timiskaming property. The Beaver Mine features one of the deepest shafts in the Cobalt Camp at 487.7 metres (1600 feet) and a winze to a further 22.9 metres ~75 feet. (www.geologyontario.mndmf.gov.on.ca/mndmfiles/pub/data/imaging/MDC010/MDC010.pdf )
This deep mine shaft was one of the earliest to penetrate the entire thickness of the diabase intrusion and led to the discovery of silver veins on the lower contact. The mine workings were de-watered in the 1970’s and the old workings from the lower contact were widened to allow access for the larger more modern equipment. Production from the 1970’s was entirely from veins on the lower contact with total production during that period of 29,878 ounces silver, 2,724 pounds cobalt, 3,189 pounds copper and 905 pounds of nickel.
Production from the mines adjoining the Beaver Mine directly to the South and West included the Temiskaming Mine, 376.9 tonnes silver (12,118,796 ounces), Brady Lake Mine, 96.4 tonnes silver (3,100,000 ounces), Cobalt Load, 139.8 tonnes silver (4,493,725 ounces) and the Christopher Mine, 127.5 tonnes silver (4,100,000 ounces).
Between 1977 and 1989 Agnico Eagle Mines produced 124 tonnes silver (3,986,761 ounces) broken down as follows: 122.96 tonnes silver (3,953,319 ounces) from the Cobalt Lode and Duchess claims south of the Beaver property, 0.929 tonnes silver (29,878 ounces) from the Beaver property and 0.111 tonnes silver (3,564 ounces) from the Brady Lake claims. All later production was from the lower contact area of the Nipissing diabase.
Agnico Eagle accessed the properties from the 487.7 metre level of the Beaver Shaft and later from a cross cut driven from the Temiskaming Shaft. Castle management believes that diamond drilling of the lower contact area of the Beaver property is warranted to test a near flat fault known to exist at Beaver. A similar flat fault in the Duchess and Cobalt load appears to have been a controlling feature in the ore mined by Agnico Eagle
The rationale for acquiring the Beaver cobalt silver property relates to the cobalt and silver production history given the increasing global demand for cobalt. Electric car manufacturers use cobalt, lithium, nickel, and others as the cathode material in their “long life” batteries. According to technology metals specialists, despite cobalt prices stagnating at US $13 per pound for several years, it was only a matter of time until the shortage would show up in the form of higher prices. From October 2016 through to January 2018 the cobalt price more than doubled climbing above $37 per pound U.S. in early 2018. This price move in cobalt is generally regarded as the beginning of a mega-trend with stable supplies forecast to fall short for several years. On the silver side, analysts have suggested that silver may outperform gold in percentage terms over the next up cycle.
Management plans to continue work on the Beaver property now that the Company is cashed up due to three oversubscribed raises in the first half of 2017 and another raise in 2018. The redemption of warrants is also expected to bolstering the treasury in 2018. A small trenching program was initiated in the summer of 2017 at Beaver.
On December 8, 2017 it was announced that the initial work program at Beaver returned high-grade cobalt from three composite samples (total weight 38.7 kg) collected from select hand cobbed material at surface. The three composite samples averaged 4.68% cobalt, 46.9 g/t silver, 3.09% nickel.
Data collection will continue for comparison to, and verification of, existing maps and data all of which will be analyzed to determine the most efficient way to proceed at the Beaver cobalt silver property.