LiCo Energy Metals to acquire Ontario Cobalt Property from Glencore
Wednesday, Sep 06, 2017
LiCo Energy Metals Inc. has entered into a property Purchase Agreement effective August 31st, 2017 with Glencore Canada Corporation (subsidiary of Glencore plc) ("Glencore") of Baar Switzerland, (LSE: GLEN) to acquire a 100% interest in mining rights patent #585 (the "Glencore property") situated in Bucke Township, 6 km east-northeast of Cobalt, Ontario.  The Purchase Agreement includes a back-in provision, production royalty and an off-take agreement in favor of Glencore.  

Glencore is one of the world's largest producers of cobalt as a result of by-products created from its copper assets in the DRC and nickel assets in Australia, Canada and Norway.

"We are very excited to acquire this strategic Canadian property from Glencore.  The property is conveniently located adjacent to our current Teledyne Cobalt property, and this purchase agreement allows LiCo to expand upon one of Glencore's longstanding Canadian cobalt assets.  If all goes as planned, we could be selling all our cobalt produced back to Glencore in the future.  It is a property sale, but we have also found a significant future customer," states Tim Fernback, LiCo's President & CEO.

Strategically, the Glencore property consists of 16.2 hectares and sits along the west boundary of LiCo's Teledyne Cobalt Project that covers the southern extension of the former producing 15 Vein on the past-producing Agaunico Mine Property.  Historically, the Agaunico Mine produced 4,350,000 lbs. of cobalt and 980,000 oz. of silver during the mining boom of the early 1900's (Cunningham-Dunlop, 1979).   

In the early 80's the Glencore property was explored by 36 surface diamond drill holes totaling 3,323 m.  The drilling program outlined two separate vein systems hosting significant cobalt and silver values.  The two zones are known as the Main Zone, measuring 152.4 m in length, and the Northwest Zone, measuring 70.0 m in length.  The Main Zone had a north-south strike, which is hypothesized as the southern extension of the #3 vein from the Cobalt Contact Mine located immediately to the north of lease #585 (Bresee, 1982).  Additional work was recommended but never completed due to a downturn in cobalt prices at the time.

On LiCo's adjacent Teledyne property, historical drilling also encountered two zones of cobalt/silver mineralization extending from the boundary of mined zones at the Agaunico Mine in a north-south direction.  In 1980, Teledyne completed a 700 m long production decline to reach the mineralization encountered in their surface drill program.  Both the surface and underground drilling programs confirmed the extension of the Agaunico cobalt zones onto the Teledyne property for a strike length of 152.4 m.  In addition, the drill program encountered a second zone with a strike length of 137.2 m.  The most significant results included 0.644% Co over 16.9 m, 0.74% Co over 8.7m, and 2.59% Co over 2.4 m (Bresee, 1981).

"We are delighted to add this Glencore property to our land position in Canada.  By adding drill indicated cobalt mineralization from the Glencore property with similar mineralization as that found at our nearby Teledyne property, we have greatly enhanced LiCo's potential for finding an economic cobalt deposit. I am looking forward with great interest to seeing the results of the upcoming drill programs scheduled for both the Glencore and Teledyne properties this fall," commented Mr. Dwayne Melrose, Director and Head of the Technical Advisory Board of LiCo.

For more information, please visit: https://licoenergymetals.com/

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