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. Ontario, Canada – Cobalt Property
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.
| Hole_ID | Co_pct | Length_m | From_m | To_m | ||
|---|---|---|---|---|---|---|
| TE17-01 | 0.62 | 6 | 136 | 142 | ||
| incl. | 3.92 | 0.75 | 140.25 | 141 | ||
| TE17-02 | 0.95 | 1.9 | 143 | 144.9 | ||
| incl. | 2.58 | 0.6 | 144.3 | 144.9 | ||
| TE17-02 | 0.59 | 3.9 | 156 | 159.9 | ||
| incl. | 2.22 | 0.6 | 156.6 | 157.2 | ||
| TE17‐04 | 1.82 | 6 | 138 | 144 | ||
| incl. | 5.06 | 1.75 | 141.25 | 143 | ||
| TE17‐05 | 2.32 | 4 | 126.5 | 130.5 | ||
| TE17‐05 | 1.7 | 6 | 136 | 142 | ||
| TE17-07 | 0.5 | 2.1 | 127.6 | 129.7 | ||
| TE17-08 | 0.77 | 3.4 | 169.5 | 172.9 | ||
| incl. | 1.17 | 2 | 169.5 | 171.5 | ||
| TE17-08 | 0.59 | 1.2 | 174 | 175.2 | ||
| TE17-08 | 0.62 | 0.6 | 178.6 | 179.2 | ||
| TE17-11 | 0.54 | 2 | 130 | 132 |
