Idaho Champion (CSE:ITKO, OTCQB:GLDRF) Gold Mines Canada Inc. told investors it has begun an internal strategic review of its Cobalt property package located in the heart of the Idaho Cobalt Belt, and its 100%-owned Baner Gold Project located in Idaho County, Idaho.
The company said the decision to undertake an internal strategic review of both properties was made based on recent developments in the commodities market and renewed interest in exploration investments in Idaho. The strategic review will consider, evaluate, and compare options with the intention to best maximize value to Idaho Champion (CSE:ITKO, OTCQB:GLDRF) shareholders, it added.
"Cobalt as a commodity has been performing well as a result of growing demand for electric vehicles, the shift towards a zero-emission economy by 2030, and limited commodity supply,” CEO Jonathan Buick said in a statement.
“While originally not a core asset for the company, our cobalt property portfolio now offers a significant value proposition, boosted by its strategic location in the region that hosts the US's newest cobalt producer Jervois Mining, whose ICO project is scheduled to commence production this year. Similarly, the Baner Gold Project is located 5 kilometres (km) north of, and on strike with, Idaho's most recent gold producer operated by Endomines AB (NASDAQ OMX:ENDO).”
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The company noted that its Cobalt property package is comprised of 622 mineral claims located along strike and within proximity of well-developed cobalt projects along the Cobalt Belt.
- Victory Project DUP Claims: about 6 km south of the Blackbird Mine
- Fairway Project SC Claims: about 3 km east of the town of Cobalt and 1 km north of the Blackpine copper occurrence
- Twin Peaks Project TP & Badger Claims: located on the Twin Peaks Copper Mine, 3 km from Electra Battery Metals' Iron Creek
- Ulysses Project IP & GS Claims: about 2 km north of the Ulysses mine
Meanwhile, Idaho Champion’s Baner Project is located 8 km southwest of Elk City, Idaho, in the heart of the historical Orogrande-Elk City Mining District.
It noted that Baner is located within the Orogrande Shear Zone (OSZ), a 20-km long and up to 1-km wide regional shear zone located in Central Idaho.
The OSZ is a transpressional shear zone composed of metamorphosed Proterozoic sedimentary rocks of the Belt Supergroup and granitic rocks of the Cretaceous Idaho Batholith, which is intruded by Tertiary rhyolites and dacitic dikes, the company explained.
Hydrothermal alteration is spatially associated with the OSZ consisting of silicification, sericitization, and chloritization. Different types of mineral systems occur in the OSZ and along sympathetic structures in the area, most likely of Cretaceous or Tertiary ages. Mineralization may include disseminated bulk-mineable precious metal mineralization associated with sheeted or stockwork veins, hydraulic breccias and with extensive widespread alteration; but high-grade gold also occurs within discreet, structurally-controlled quartz veins and silicified zones.
The company said Premium Exploration conducted extensive soil sampling, airborne and surface geophysics, and drilling during the period around 2010.
In 2020, Endomines AB (NASDAQ OMX:ENDO) brought the Friday Gold Project into production based on a reported Measured and Indicated Resource of 462,000 tonnes grading 6.54 grams per tonne (g/t) gold and mined 6,600 tonnes of ore with a 3.52 g/t head grade. The Friday Gold Project is located within the OSZ, approximately 8 km south of the Baner Project.
“We will conduct a thorough review and determine what the best and most accretive step will be for the Champion shareholders,” Buick concluded.
Contact the author at stephen.gunnion@proactiveinvestors.com