MetalsTech (ASX: MTC) has concluded its buy-up of the Rusty Lake cobalt-silver mine in Ontario, Canada from New Found Gold Corp.
West Australia-based MetalsTech snapped up 52 mining claims for C$225,000 (A$230,594.62) cash and 3 million escrowed-shares scrip acquisition from New Found Gold, with the deal’s completion announced today.
The 540-hectare Rusty Lake project includes the historic Rusty Lake Mine which was mined three times, over 10 years, in the years 1910-1913, 1936-38 and 1964-1968.
MetalsTech managing director Mr David Riekie said the completed acquisition was a significant event for the company.
“It now gives our exploration team the ability to accelerate permitting and ground access activities at Rusty Lake,” he said.
Community and stakeholder engagement programs will start for the project in the next two weeks, as the company prepares to begin exploration activities.
High-grade cobalt and nickel at Rust Lake
MetalsTech shared highlights of a May 2017 mine-sampling program in its announcement today, revealing two assays of more than 10,000 grams per tonne silver, with one also including 11.85% cobalt and 2.97% nickel, and the other 9.92% cobalt and 3.93% nickel.
High-grade mineralisation was identified at four other sample points — the main shaft of the stockpile grab, the coarses of the grab and the fines, and the tailings of the main shaft.
Another assay, from the main-shaft stockpile, had 3,510g/t silver, 6.08% cobalt and 8.64% nickel.
Mr Riekie said the company expected the upcoming field season would be a defining one.
He added the company would undertake diamond-drilling programs and tipped a late June or early July kick-off.
Rusty Lake background
Rusty Lake has good road access and is about 30km south of the Gowganda Mining Camp which historically produced about 58 ounces of silver and more than 1.3 million pounds of cobalt.
The Rusty Lake mine is also 70km northwest of its 100%-owned Bay Lake high-grade cobalt project near the border of Quebec.
New Found Gold retains a 2% net smelter royalty over all metals except cobalt, for which it will claim a 0.5% royalty.
MetalsTech can buy back half the royalties in exchange for C$1 million in cash, shares or a combination of both.
Once MetalsTech defines a JORC resource or NI 43-101 inferred resource of no less than 1 million tonnes at least 0.5% cobalt equivalent, it must pay New Found Gold C$150,000.
In February, MetalsTech kicked-off a maiden drilling program for its 100%-owned Adina lithium project in Quebec where preliminary rock-chip sampling returned up to 3.12% lithium.
Last December, a Chinese battery supplier snapped up a stake in MetalsTech after another China-based end-user scooped up a 10% stake in the explorer last October.