Not many people know that there is more cobalt in a Lithium ion battery than there is lithium. Kevin Bottomley, CEO of Kings Bay Resources (V.KBG), lets that piece of information sink in.
“A large quantity of cobalt is mined in Africa,” said Bottomley “It is mainly artisanally mined and the vast majority of the production is going to China. So there is security of supply issues as well as other political issues with minerals coming from the Democratic Republic of the Congo.”
“Cobalt is primarily a byproduct of copper and nickel. In 2008 we saw prices hitting $50.00 a pound, now they are $18.00 a pound.” said Bottomley. “and we are seeing a rise in metal prices.”
Kings Bay was founded by Bottomley – a long time associate of Vancouver mining incubator Zimtu Resources – to do the early stage exploration of the Lynx Lake property in Newfoundland and Labrador.
“Lynx Lake was discovered during the construction of the Trans-Labrador Highway. One of the surveyors working on the highway had worked in Voisey Bay and he noticed that some of the aggregate, basically the crushed rock used as fill for the highway, looked a lot like the rock he’d seen at Voisey Bay. He traced the rock back to two pits near the highway where the aggregate was being quarried. Then he staked the area.” said Bottomley. “Our geo, a Newfoundlander named Nick Rodway, had an ongoing conversation with the surveyor. Basically he said, “I think we can take this to market.” It took eight months but the deal closed in January.”
“The area was underexplored: until the highway went through, there was no access. Now there is great access. The property is an hour down the highway from Goose Bay.” said Bottomley. “We’re seeing great cobalt numbers, very high.”
A potential mine is not just about the deposit as Bottomley knows. “The people in the area and the government have been great. The government needs to generate jobs.” said Bottomley, “The people love the excitement of something happening in their area. In fact, there were 67 people who invested in our private placement and 60% of them were from the area. The government has been very helpful.”
“We have already had meetings with the local First Nations. They want to work with us.”
“Before we send in the drills we want to do an airborne survey. We have 240 square kilometers and we want to identify the best zones and distinguish the best targets. We have already received our permit to do the aerial survey. We hope to have drills turning at Lynx Lake by late spring depending on the snow conditions.”
“We managed to get the transaction to work by flying our geo to Newfoundland. He was able to come up with a preliminary 43-101 report confirming the historical work which was done on the property. That allowed us to close the transaction and put the money in the bank.” said Bottomley.
“We’re specialists in early stage projects. We have access to Europeans who want to invest in early stage Canadian projects.” said Bottomley who has spent years building European connections through his work with Zimtu. “We can bring the exploration expertise.”
With the Lynx Lake project underway, Bottomley looked around for other cobalt focused properties.
“I enjoyed working in Quebec,” said Bottomley “I like the tax incentive regime. I wanted Kings Bay to have a basket of properties and we found some highly prospective cobalt properties in Quebec at reasonable prices. We found three good targets which had been worked by Falconbridge around 2000. There were initial, positive, results which we could build on.”
Kings Bay acquired these properties and is at work reconfirming the assays and the geological data. “We have a good idea what has been done, good geological data. We have more data on two out of three of the properties.” said Bottomley.
And, in late breaking news, Kings Bay has acquired another Newfoundland copper-cobalt property on Trump Island. Bottomley is quoted in the news release as saying, “The Trump Island acquisition fits in with our commitment to advancing high grade copper-cobalt properties in Newfoundland & Labrador. The fact that there has been historical mining on the island adds a new dimension to our property portfolio.”
Kings Bay, as a brand new company, is right now at the planning stage on all of its properties.
“We want to have a plan and execute on that plan.” said Bottomley, “We want to do as much as we can, with the resources that we have, as fast as we can.”
“Overall the market is getting better. I’m seeing some excitement. People are coming back from the sidelines.”
Read the rest of the article here.