CANADIAN MINING NEWS

 

Famed Cobalt Camp Heating Up

Editor – Canadian Mining News

The Famed Cobalt Camp is heating up and running out of ground fast! By whatever name you know the famed Cobalt Camp of Ontario, the Poor Man’s Mining Camp, the Silver Capital of Canada, the Cradle of Canadian Mining, or more recently, Diamonds are a Girl’s Best friend and the Cobalt Camp is certainly a Lady! The most famous town in Ontario and more recently named the most Historic Town in Ontario is certainly a hot spot and one to be watching.

Agnico-Eagle shut down its last silver-cobalt producer in the Cobalt Camp in the late 1980’s and moved its fortunes to the goldfields of Quebec. Some say because of the environmental problems Agnico-Eagle couldn’t get out of the Cobalt Camp fast enough while others say Agnico-Eagle will be back. This seems highly unlikely since Agnico-Eagle sold their only mill in the Cobalt Camp to SMC in the late 1990’s and their refinery Division to the Township of Coleman and their Head Office to the Town of Cobalt in the 2000’s. What they are left with is a large land package with several former producing silver-cobalt properties and the environmental responsibilities that go along with them.

A few local prospectors and a locally owned private Company, Outcrop Explorations Limited, incorporated in 1983, have kept the Cobalt Camp barely alive in the mining circle until diamond fragments were discovered by PrairieC and Kennecott in the Cobalt Camp in the 2001. This, in itself did little to spark the Cobalt Camp until news of other diamond potential was announced in the Temagami and Marten River areas to the south. Then came news of DeBeers diamond discovery in the James Bay Lowlands, but it wasn’t until the diamond potential of the Otish Mountains in Quebec came into play before the Cobalt camp began receiving the respect it should have had almost two years ago.

Rumors have it that Outcrop, Cabo Mining Corp, Davidson Tisdale, Consolidated Professor Mines and a host of others are all vying for nearby and adjoining Agnico-Eagle ground in the Cobalt Camp. Agnico’s ground in the Cobalt camp hosts the same potential for diamonds and there are rumors that the price of silver will soon see $15.00 an ounce again.

Another newcomer to the Camp is Canmine Refinery, which is readying their plant for commercial production sometime in February 2002. They will be looking for local as well as international feedstock to keep the Refinery running. Canmine and Consolidated Professor Mines have had several discussions as Consolidated Professor has a cobalt-silver property ready to go into production less than a mile away from the Canmine facilities.

Outcrop Explorations, still the largest land baron in the Cobalt Camp with its Joint Venture partner Cabo Mining Corp. of Vancouver, BC have also approached Agnico-Eagle with little, if any response thus far.

Consolidated Professor Mines has had a long and good working relationship with Agnico-Eagle Mines and is hoping this will last into the latest rounds of negotiations.

 Davidson Tisdale is new to the Cobalt Camp, but its President, Robert Norcott has been around the Camp for a number years. Davidson Tisdale has a former gold producer in Timmins, Ontario with proven reserves, which may catch the eye of the Eagle, Agnico-Eagle that is! These are just a few of the Companies pursuing Agnico-Eagle at this time and I’m sure the list goes on, involving other local interests.

Thus far, Agnico-Eagle has not shown the hand it intents to play to anyone but most locals know that Agnico-Eagle wants out of the Cobalt Camp at any cost. There may even be some real basemetal explorers, but then again these suitors will soon learn that Falconbridge walked out of a deal on Agnico-Eagle’s Cobalt area properties over a year ago stating that the environmental liabilities were too much even for Falconbridge.

Falconbridge, Teck, Noranda and a host of other majors showed renewed interest in the Cobalt Camp in the 90’s, after Outcrop Explorations opened up some new ground running high in gold-silver and base metals but the majors wanted to see more! So the junior was forced to take on at least two other juniors from Calgary and another from Vancouver to be able to keep up with the assessment work on their ground, which runs about $500,000 per year. Cabo Mining Corp., it’s last and current JV partner has been doggedly keeping Outcrop’s holding’s in good standing, as well as doing an exploration program on much of the ground. Despite the problems Cabo Mining Corp. had last year when they dropped out of the Telecom business and were halted for over a year, they miraculously managed to keep up with the assessment work requirements on Outcrop ground as well as PrairieC’s holdings in the Cobalt Camp. This small but mighty Company just seems to get stronger when all the chips are against them and with Cabo and Outcrop pulling together they should be a force to reckon with in the new evolving Cobalt Camp.

This is one more chapter in the ongoing saga of the most famous Lady of all, the Cobalt Mining Camp of Ontario, Canada.

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