COBALT FORD PROPERTY REPORT

 

Property Description and Location

The Cobalt Fold Property is in the Côte-Nord area of Quebec Province on NTS sheet 22K15 and is readily accessed by driving northward for 180 kilometers (~4 hours) from Baie-Comeau. Baie-Comeau is a strong base for industry services located on the Saint Lawrence River providing a seaport allowing global access to deliver product worldwide.

Main Road HWY 389 passes 7km east of the Property in a North-South direction, with access to the property afforded by secondary roads. A high tension power line is located parallel to Road 389. The property is characterized by a very hilly topography and is bordered by the Lac Paradis to the west and by the Manicouagan Reservoir to the east. The property is accessible year round, and comprises one block of 40 claims, totaling approximately 2,176.19 hectares or 21.76 km2.

Figure 1: Location of the Property

History

Previous exploration work includes exploration for base metals targeting mafic and ultramafic rocks (pyroxenite, peridotite, amphibolites) and paragneisses. Several geophysical surveys have been undertaken (1996, 2004 and 2006, airborne magnetics and radiometrics), along with some prospecting and mapping surveys. Outcrop mapping in 1971 detailed the exposed rock formations in the area, with further geological mapping in 1977, 1997, 2005 and 2006, which revealed the existence of multiple sulphide mineralization occurrences. Cobalt values of 904.3ppm and 1,480ppm have been returned from rock sampling. A drilling campaign happened in 2006, which focused on the western half of the property.

Drilling

Quinto Technology Inc. conducted a drilling campaign in 2006 on the adjacent Lac Paradis Cu-Ni property, with four holes located on the western part of the present Cobalt Fold property (Lyons et al, 2006).

Figure 2: Historic Drill Holes location and Pegmatite occurrences

Drilling identified sulphide mineralization as disseminated and stringer occurrences in mafic (up to 3% sulphide) and ultramafic (peridotite, up to 1% sulphide) host rocks (Lyons et al, 2006). Mafic rocks consists in gabbronorite with less than 0.5% visible disseminated sulphides and up to 3% in highly foliated zones

The highest metals value sample reported by Quinto Technology as a result of the drilling returned 4.64% Ni, 2.37% Cu, 0.12% Co, 19ppb Pt, 110ppb Pd and 168ppb Au, over an undisclosed length.

Geophysics

In 1996, Sial Geosciences Inc. conducted a combined helicopter-borne magnetic and electromagnetic survey on behalf of SOQUEM. Their conclusion was that the magnetic anomalies characteristics within each block tend to be erratic although there are some formational linear horizons, which map intrusive dykes and sill structures (Woolham, 1996; Bissonnette, 1997).

In 2004, Quinto Technology Inc. conducted ground magnetics and an electromagnetic MaxMin horizontal survey. More than 13 EM anomalies were detected, with two targets being recommended as drill targets (MM-6 and MM-8) (Hubert, 2004).

Adjacent Showings

The property is covered by three base metal showings. The Lac Paradis 1 showing is located on the western part of the property and was drilled by Quinto Technology. The mineralization consists of massive to semi-massive, disseminated or veinlet accumulations of sulphides hosted in mafic to ultramafic units. Grab samples taken by the MRNF returned 5.26% Ni, 280ppm Cu, 1,480ppm Co, and trace amounts of Pd, Pt and Au.

In the center of the property is the “EM C2” showing which returned up to 1,554ppm Cu, 229ppm Ni and 5.6g/t Ag from a grab sample (Bissonnette, 1997). On the eastern part of the property is the “EM E2” showing, which returned up to 0.19% Cu, 0.09% Ni, 0.04% Co and 3.1g/t Ag from a grab sample (Bissonnette, 1997).

Multiple base metal showings also occur in the area around the property (Figure 3). Approximately 6km south of the Property is the “EM H1-H2” showing, where the best grab samples returned 0.16% Ni, 0.67% Cu and 0.02% Co (Bissonnette, 1997). 10km east is the “K15L2” showing where the best grab sample returned some 0.50% Cu (McCann et al, 1977).

Deposit Types

Figure 3: Property Claims

These sulphide-rich lithologies present with base metal (copper, nickel, cobalt) and precious metal (gold, silver and PGE) potential, with chalcopyrite, pentlandite and cobalt sulphides most commonly developed (Bissonnette, 1997).

Hydrothermal Ni-Cu ultramafic intrusions

The main deposit target on the Property is sulphide-rich accumulations associated with the ultramafic units.

Conclusion

The presence of copper showings and sulphide mineralization in the vicinity of the Property indicate a good potential of discovery of ultramafic complexes and their associated copper-nickel- cobalt-PGE mineralization occurrences.

Planned Exploration

The Company is planning to perform a full review of the historical work and available data to help in defining targets for prospecting work. Systematic prospecting, sampling and mapping of the multiple outcrops easily accessible on the Property should allow the Company to better define the mineralized bodies on the Property and assess their potential to host sulphide mineralization.

References:

Bissonnette, F., 1997: Rapport sur les Travaux de Terrains, Campagne 1996, Projet Annic et Annic-Fortin (1181 et 1181-1). SOQUEM, Tiomin Resources Inc, [GM 54733].

Forbes, E., 2005: Rapport des Travaux d’exploration, Propriété Lac Paradis. Exploration Esbec Inc, [GM 61801].

Hubert, J., 2004: Magnetic and Horizontal Loop Electromagnetic Surveys, Lac Paradis Property. Exploration Esbec Inc, [GM 61802].

Lyons, E., Forbes, E., 2006: Cu-Ni Property Evaluations, Lac Paradis Cu-Ni Property. Quinto Technology Inc, Exploration Esbec Inc, [GM 62771].

McCamm, A.J., Armstrong, E., Lacasse, J., 1977: Rapport sur la Campagne d’exploration, Été 1977, Baie-Comeau, Port-Cartier, Manicouagan, Projet Manic 22-2001. SOQUEM, [GM 49156].

Woolham, R.W., 1996: Report on a Combined Helicopter-Borne Magnetic and Electromagnetic Survey, Project Annic (1181). SOQUEM, Tiomin Resources Inc, [GM 54721].

Zientek, M.L., 2012: Magmatic Ore Deposits in Layered Intrusions-Descriptive Model for Reef- Type PGE and Contact-Type Cu-Ni-PGE Deposits. U.S. Geological Survey Open-File Report 2012- 1010, 48p,