Drilling is currently getting underway at the Lynx Lake copper-cobalt project in southeastern Labrador.
The project is owned by Kings Bay Resources Corp (CVE:KBG), the reinvigorated Kings Bay Gold, which has been picked up and given new direction by chief executive Kevin Bottomley, assisted by geologist Nick Rodway.
Looking for copper and cobalt
“This was a distressed gold shell with internal issues,” says Bottomley. “But we cleaned it up, refinanced it and began to look for a project that made sense. Nick struck up a conversation with a prospector and we were able to get a deal done just south of Goose Bay.”
So Kings Bay is now out looking for copper and cobalt, with two holes planned as part of an initial 500 metre drill programme.
It may be a small campaign, but it’s such early stage work that the sense is that Kings Bay is still learning its way round, geologically-speaking.
“When we acquired the property we went for a visit and took some samples,” says Rodway.
“Walking the property we didn’t really find a whole lot. But then we initiated a VTEM survey – airborne electromagnetics. And at that point we found an area of high conductivity and low resistivity that’s between 200 metres and 500 metres in diameter and goes down to between 50 metres and 350 metres depth.”
It’s that area that’s now the target of this first pass drilling work.
“We’re looking for a magmatic deposit,” says Rodway. “But we don’t really know what we’re going to find. It’s a blue-sky type-of-thing. But if we find something big there, it’ll be in a very good jurisdiction.”
Enough capital going forward
It’s not just because it’s Canada and political risk is low. In fact, Kings Bay stands to receive up to 75% of its exploration spend back from the regional government as part of a business incentive programme. There is a cap to that rebate, but as an initial kick-starter, it certainly helps.
As it stands, Kings Bay has enough cash to be going on anyway. Bottomley estimates that the two drill holes will cost between around C$80,000 and C$120,000.
“We have the capital we need to go out and execute,” he says. “We’ve done a couple of small fundraisings. But if we were to find something with the two drill holes maybe we’d do another raise and do another ten drill holes.”
That’s not the only option, of course.
This first drilling will be an interesting early test case, but Kings Bay has got around 24 square kilometres under license in the region. That is a sizeable chunk of land if it turns out to be prospective for copper and cobalt, especially with the way interest in cobalt is running through the mining sector at the moment.
“If anyone were to approach us we’d be open to make an agreement,” says Bottomley. “If we are to have success in this drill programme there’s going to be a number of people circling round us.”
At this stage the ground looks prospective for copper, cobalt, vanadium and nickel.
“The VTEM was on 20 square kilometres,” says Rodway. “But we’ve staked the remainder. The geology is all similar, it has the same-aged rocks.”
So the opportunity for investors is pretty clear: early-stage, but with significant upside.
“We are real pioneers in an area that hasn’t been greatly explored,” says Bottomley. “Another level of investor will come into the stock if we’re successful here.”
Trump Island project will also continue
And while all that’s going on, work on Kings Bay’s other main project, Trump Island, will also continue.
Samples from Trump Island are currently being assayed in a laboratory, with the target again copper-cobalt. News from there will come in due course, with news from Lynx Lake expected in mid-December.
“It would be a great Christmas present to give to our investors,” says Bottomley.
Watch this space.