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Report #7

Full version / Aerial view of the "West Pit" on the Lynx Lake Property.

The cobalt price has been appreciating strongly over the past months and junior cobalt companies gained traction because there are no cobalt ETFs and the battery-critical metal is illiquid on the London Metal Exchange. Due to cobalt being mainly a byproduct of copper and nickel mines, there are not many primary cobalt producers out there, not to speak of publicly traded producers. The cobalt explorer King‘s Bay Resources Corp. is gaining attention as it has become increasingly active at 2 of its 5 cobalt projects in Canada. 

With 44 million shares issued and outstanding, and a market capitalization of $5 million CAD, King‘s Bay today made the announcement I have been waiting for: The company is getting ready to drill its Lynx Lake Copper-Cobalt Project in Labrador. The goal of the initial 500 m drill program is to discover a copper-cobalt deposit near surface. Previous exploration indicates formidable potential to achieve this goal. 

King‘s Bay recently completed a deep penetrating VTEM survey, which was successful in identifying an anomaly that is anticipated to be ranging in depth from 50-300 m and estimated to be around 400 m in diameter. This striking anomaly has been spotted at the "West Pit", a former rock aggregate quarry that was used for the construction of the Trans-Labrador Highway, which now runs adjacent to the Lynx Lake Property. This quarry revealed some highly unusual mineralization at surface and subsequent sampling disclosed excellent exploration potential: 0.56% cobalt, 1.03% copper, 0.23% vanadium, 0.1% nickel and 6.5 g/t silver (results are considered historic). 

Before the construction of the Trans-Labrador Highway, the area was considered too remote for effective exploration. Now with easy access and a 3-phase powerline running adjacent to the property, the project is benefitting greatly given the promising results from surface sampling. The VTEM survey also identified anomalies at the "East Pit", where historic assays of up to 0.94% cobalt, 1.39% copper, 0.21% nickel and 6.5 g/t silver showed additional exploration potential.


The Trans-Labrador Highway and the 3-phase Muskrat Falls transmission line run adjacent to the Lynx Lake Property. See drone survey here.


The 3-phase Muskrat Falls transmission line intersects the Lynx Lake Property. 

In late July, King‘s Bay started an exploration program at its other property, the Trump Island Project in Newfoundland. The company has assembled a technical field team to immediately investigate the historical geologic data from the past producing copper-cobalt mine at North Trump Island. Phase-1 of the program includes a localized geophysical survey, grab sampling in the existing mine shaft and reconnaissance of the remainder of the island for new showings. Pending positive results, phase-2 of the exploration program will potentially include a drilling program. The property’s history dates back to the mid 1860s when a 6.1 m shaft was sunk on a mineralized zone of massive chalcopyrite. At the bottom of the shaft, it was reported that the mineralized zone expanded with depth but, due to limited technology, no further excavation could be safely continued. Follow-up grab sampling in 1999 by G. Lewis, an experienced local prospector, revealed mineralization assaying up to 0.30% cobalt, 3.8% copper, 2.9 g/t gold and 10.9 g/t silver near the old mine shaft. The property has not been drilled to date. The compilation of the recent 1998-99 field work done by Lewis also suggests that a more detailed exploration program is warranted. 

Bottom-Line

Overall, King‘s Bay is now active at 2 highly promising cobalt exploration projects in safe and mining-friendly jurisdictions. Drilling both properties could make the discovery of cobalt-rich deposits official. As cobalt deposits in the Western World are scarce, but highly sought-after, King‘s Bay is well on track to gain respect as an explorer and developer of projects with a focus on cobalt, copper and other high-tech metals in North America. 


Updated chart

Full version

Company Details

King‘s Bay Resources Corp.
Suite 1450 – 789 West Pender Street
Vancouver, B.C. V6C 1H2 Canada
Phone: +1 604 681 1568 
Email: jrushton@kingsbayres.com
www.kingsbayres.com

Shares Issued & Outstanding: 44,436,423


Chart

Canadian Symbol (TSX.V): KBG
Current Price: $0.105 CAD (08/18/2017)
Market Capitalization: $5 Million CAD


Chart

German Symbol / WKN (Frankfurt): KGB1 / A2AN0E 
Current Price: €0.062 EUR (08/18/2017)
Market Capitalization: €3 Million EUR

Previous Coverage

Report #6: “VTEM Survey Reveals Large Conductor Near Surface at the West Pit of the Lynx Lake Copper-Cobalt Property in Labrador“ (June 19, 2017) 

Report #5: “Finding the High-Grade Cobalt Source on the Lynx Lake Property in Labrador“ (April 21, 2017) 

Report #4: “Escalating cobalt prices lead Kings Bay to acquire Trump Islands property” (February 16, 2017)

Report #3: “Advancing a cobalt-rich portfolio of discovery-ready exploration projects in Canada” (February 6, 2017)

Report #2: “Cobalt Crunch Time” (January 20, 2017)

Report #1: “Potential for a Massive Discovery of Cobalt, Copper and High-Tech Metals” (October 27, 2016)

Disclaimer: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist.

Write a comment

Name:
Unbekannter Author
23.08.2017 12:05:53
Cobalt prices are about to increase significantly.
Many factors are pointing to the coming reality.
Looks like this will be a huge finding.
Likes | 24
Dislikes | 0
COMPANY INFO
Name: King‘s Bay Resources Corp.
Canada Symbol: KBG
Germany Symbol / WKN: KGB1 / A2DWBR
Shares Issued & Outstanding: 44,436,423
Phone: +1 604 681 1568
Email: jrushton@kingsbayres.com
Web: www.kingsbayres.com
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