Report #6

At the West Pit of the Lynx Lake Property in Labrador, King‘s Bay has identified a VTEM anomaly (full version)

Today, King’s Bay announced to have located a high-priority electromagnetic target on its 100% owned Lynx Lake Copper-Cobalt Project in southeastern Labrador, Canada.

After analysis of Geotech Ltd.’s completed helicopter-borne VTEM survey, a shallow anomaly of low resistivity has now been identified in what is known as the “West Pit”, which is directly adjacent to the Trans-Labrador Highway.

When the Trans-Labrador Highway was built in 2008, rock aggregate was required and the West Pit was one of the chosen sources along the highway. Subsequent grab sampling in 2015 (considered historic) yielded assays of up to 0.56% cobalt, 1.03% copper, 0.23% vanadium, 0.36% chromium, 0.39% molbydenum, 0.1% nickel and 5 g/t silver. Generally, cobalt grades of 0.5% are considered high-grade.

The VTEM survey has now confirmed that the West Pit coincides with a distinct anomaly anticipated to be ranging in depth from 50-300 m and estimated to be approximately 400 m in diameter. This broad magnetic anomaly represents a disrcete shallow conductor and thus an excellent exploration target.

VTEM surveys are advertised to have a penetration depth of over 800 m and able to delineate potential drill hole targets. As Geotech flew a total of 382 line km (or 53 km2) over approximately 21% of the property (total size 240 km2), there is plenty room for more discoveries.

On April 21, King’s Bay announced that preliminary results from the VTEM survey has identified “several potential anomalies”, one of which is located in the “East Pit”, where historic assays of up to 0.94% cobalt, 1.39% copper, 0.21% nickel and 6.5 g/t silver showed great exploration potential.

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According to Bloomberg, “the race is on to supply metal powering electric vehicles”, first and foremost cobalt. A typical electric vehicle contains 15 kg of cobalt (a laptop includes about 33 g of cobalt while a smartphone requires about 6 g). According to CRU Group, the “rising cobalt demand and flat supply in the 100,000 metric-tons-a-year market opened a 1,500 ton deficit in 2016 that could triple this year”.

King’s Bay aims to be one of those contenders of discovering, exploring and developing a cobalt-rich deposit in North America. Thanks to the successful identification of a sizeable VTEM anomaly near surface, King’s Bay is planning to immediately assemble a technical team to investigate this promising anomaly.

This summer’s exploration program will be completed by executing a more local, higher resolution ground geophysical survey followed by potential stripping of overburden to the south of the West Pit so bedrock can be exposed.

In addition to this, a reconnaissance team will begin to investigate the southeastern portion of the property to follow up on the anomalous historical soil samples. Detailed mapping and sampling in the 2 pits, the West Pit and the East Pit, will aid in understanding of mineralization controls. King’s Bay President, Kevin Bottomley, commented in today’s news:

“The positive identification of an anomaly in the west pit will allow King’s Bay to initiate a highly focused exploration program at Lynx Lake with a relatively low cost. This is exactly what we were hoping for when we initiated the VTEM program with Geotech.”

Although the Lynx Lake Property has never been drilled before, the sampling assays in both the eastern and western part of the property (before it was expanded from 20 to 240 km2) indicate the possibility for a large body of mineralization at shallow depths. Thanks to excellent road accessibility to deep sea water ports, a power line that runs directly adjacent to the property and the proximity to the town of Happy Valley-Goose Bay, it appears to be a perfect time now to explore this highly prospective property amid rising energy metal prices, first and foremost the battery-critical element cobalt.

Prior to 2008, the Lynx Lake Property was deemed too remote and as such remained virtually unexplored. In 2008, the Department of Transportation constructed the new Trans-Labrador Highway, which now runs through the property. During blasting (for road aggregate) on the property in the same year, disseminated and massive sulphide mineralization was discovered near surface.

Below pictures show the West Pit:

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Below picture shows a strongly mineralized grab sample from the Lynx Lake Property, where historic values of up to 0.94% cobalt indicated great exploration potential:

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Previous coverage on King’s Bay noted that the year 2017 is poised to become a breakout year for cobalt prices. Having assembled a quality portfolio of 5 prospective cobalt exploration projects in Newfoundland and Québec, King’s Bay enjoys an early mover advantage in the cobalt space.

Below charts from David Stringer in “Race is on to Mine Metal Powering Electric Vehicles“, Bloomberg June 8, 2017:

For an updated version, click here.

Company Details

King‘s Bay Gold Corp.
Suite 1450 – 789 West Pender Street
Vancouver, B.C. V6C 1H2 Canada
Phone: +1 604 681 1568

Shares Issued & Outstanding: 41,006,423


Canadian Symbol (TSX.V): KBG
Current Price: $0.105 CAD (06/16/2017)
Market Capitalization: $4 Million CAD


German Symbol / WKN (Frankfurt): KGB1 / A2AN0E
Current Price: €0.066 EUR (06/16/2017)
Market Capitalization: €3 Million EUR

Previous Coverage

Report #5: “Finding the High-Grade Cobalt Source on the Lynx Lake Property in Labrador“ (April 21, 2017) 

Report #4: “Escalating cobalt prices lead Kings Bay to acquire Trump Islands property” (February 16, 2017)

Report #3: “Advancing a cobalt-rich portfolio of discovery-ready exploration projects in Canada” (February 6, 2017)

Report #2: “Cobalt Crunch Time” (January 20, 2017)

Report #1: “Potential for a Massive Discovery of Cobalt, Copper and High-Tech Metals” (October 27, 2016)

Disclaimer: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist.

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Name: King‘s Bay Gold Corp.
Canada Symbol: KBG
Germany Symbol / WKN: KGB1 / A2AN0E
Shares Issued & Outstanding: 41,006,423
Phone: +1 604 681 1568

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