Ontario, Canada – Cobalt Property
5 Patented Mining Claims
8 Unpatended Mining Claims
In 2016, Fuse entered into an option agreement to acquire up to a 100% interest, subject to a 2% net smelter royalty (“NSR”), on the Teledyne Cobalt Property then in the spring of 2018, Fuse announced that it had amended and accelerated the option agreement and had earned a 100% interest in the Property with the vendors retaining the 2% NSR. The Property, located in Bucke and Lorrain Townships, consists of 5 patented mining claims totaling 79.1 ha, and 46 unpatented mining claim cells totaling approximately 705.99 ha. The Property is easily accessible by highway 567 and a well-maintained secondary road.
Based on historical drilling and data a cobalt resource was developed in the 1980’s however it is not consistent with current 43-101 standards and will require work to be completed by a QP in order to be brought up to current NI -43-101 resource standards. As such the Company is not treating the historical reserve estimate as a current mineral resource or mineral reserve. Over $25 million Can has been spent thus far, (2020 dollars inflation-adjusted) on the Teledyne Property resulting in valuable infrastructure including a development ramp and a modern decline going down 500 ft parallel to the vein.
During the fall of 2017, Fuse completed 11 diamond drill holes totaling 2,204 m designed to confirm and extend the existing known mineralization along strike, and up and down dip. The program tested the Teledyne Main Zone for a strike length of approximately 220 m. Significant results included TE-1704 with 1.82% cobalt over 6.00 m from 138.00 to 144.00 m, including 5.06% Co over 1.75 m from 141.25 to 143.00 metres (not true widths.) In the fall of 2018, 9 additional diamond drill holes in Phase 2 drilling were completed totaling 1,713 m at Teledyne with the intent of intersecting mineralized zones along strike and vertically above and below previous intersections reported in 2017. This program also tested several outlying targets including beneath a historical trench with veining present at surface and to intersect the East Zone. These results are expected to be available in Q2 2020.
The Teledyne Cobalt Property consists of 5 patented and 8 unpatented mining claims covering an area of approximately 607.1 ha, while the Glencore Bucke Cobalt Property Bucke Property consists of 1 patented mining claim covering an area of approximately 16.2 ha.
The Teledyne Property is subject to a production royalty in favour of New Found Gold and an off-take agreement in favour of Glencore Canada Corp., while the Glencore Bucke Property is subject to a back-in provision, production royalty, and an off-take agreement in favor of Glencore Canada Corp. Glencore plc is the world’s largest producer of cobalt.
During the fall of 2017, an exploration program was completed with 11 diamond drill holes totaling 2,204 m on the Teledyne Cobalt Property. This Phase 1 diamond drill program was designed to confirm and extend the existing known mineralization along strike, and up and down dip. The program tested the Teledyne Zone for a strike length of approximately 220 m.