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Puget Ventures One Step Closer to Becoming Canadian Cobalt Producer
By Jonathan Orr
GreenTechnologyReport.com
Monday, May 3rd, 2010
At this very moment as you gaze at your laptop screen while your cell phone buzzes away in the background, there looms a potential future bereft of the glittering devices that have become a fundamental part of your life and an extension of yourself. You may not have known that there was a threat, in the form of a shortage of Rare Earth Elements used in electronics, to the continued existence of our beloved iPhones and iPads but it looks as though you can rest assured of being able to get your hands on the latest electronics in the future and you may have Puget Ventures Inc (TSXV: PVS) to thank for that.
With Puget’s announcement of spectacular first drill results at its 100% owned flagship property Werner West, the company are confident that this confirms the property as a leading contender to become one of North America’s primary cobalt producing prospects. President Erin Chutter, enthused “ We knew we had something special at Werner West and now we have the data to back it up.”
When Green technology Report talked to Chutter a mere two weeks ago she exuded a quiet confidence and was hopeful that Puget would soon have strong drill results to tell the world about, but what she didn’t expect was the stunning interception of 1.21% cobalt over 12.30 metres. People in the resource industry are by definition a cautious bunch so it’s rare to hear terms like ‘ecstatic’ and ‘fantastic’ but these are the adjectives being used by the company to describe these first results. Chutter said “It’s simply fantastic. It’s so unusual to see cobalt grades of this calibre in North America.”
This news bodes well not only for Puget but for green technology focussed investors and gadget lovers everywhere as the domestic supply of Cobalt required for the manufacture of next generation cell phones, laptops and lithium hybrid batteries looks to be that much closer to being assured.
Cobalt Demand Surges As Domestic Supply Under Threat
Cobalt is a critical element in the high tech devices we love, the communications systems that connect us and which assure the smooth functioning of global commerce, as well as in the hybrid battery technology that will allow us to transition away from poisonous fossil fuels toward a brighter, cleaner future.
Cobalt and other Rare Earth Elements are so fundamental to maintaining our technology powered economies that it is considered a strategic resource by national governments. Its importance has most recently been clearly demonstrated by the United States commitment to spend $1.2 billion to re-establish domestic rare-earth mining to meet increased demand for cobalt’s deployment in the advanced military technologies essential to national defence.
The fact that Cobalt futures only recently began trading on the London Metal Exchange on February 22, 2010 and have already soared to $20-$21 per pound should remove any doubt in readers minds that this is a highly prized resource indeed.
With China producing close to 97% of the worlds Rare Earth Elements and quickly moving to reduce exports to supply its own surging high tech economy and domestic demand for electronics, the importance of establishing a reliable, secure supply of REEs becomes a national interest.
The fact that the domestic supply of Cobalt is currently far from assured means that, Puget, with its Werner West cobalt producing potential may play a significant role in securing North America’s long dreamed of clean tech future.
Werner West Results Higher Than Historic Grade
The drilling of the Werner West Deposit in Northwestern Ontario, has returned a 12.30 metre intercept averaging 1.21% cobalt including a very high-grade interval grading 12.48% cobalt over 0.90 metres. The high-grade intercepts are associated with anomalous copper, nickel and gold values. A second drill was recently added on the Werner Lake Property to follow up on these high-grade results.
Chutter summed up the magnitude of these results by pointing out that these first results are already higher than the historic grade of .31 % and point toward continued high grade results from future drilling programs planned for the property.
Puget’s CEO Michael Dehn mirrored Chutter’s confidence when he stated that,
“Today’s results continue to confirm continuity of the high-grade portions of the Werner West Zone and increase our understanding of the controls around the high grade in the deposit as we move towards the completion of the NI 43-101 resource report this year.”
Of particular note is the 12.48% cobalt value returned in WL10-004. This reflects a zone of more than 5% combined sulphides in peridotite, with portions that carry from 5 to 45% sulphides. At Puget’s request, the high grade sample over the interval 30.2 to 31.1m in WL10-004 was analysed five times, twice using quadruple acid digestion (which is normal procedure), and once (in triplicate) with sodium peroxide fusion. The first acid digested sample was analysed (12.949% Co) with AA finish, the second (12.140% Co) with ICP-AES finish, and the peroxide fusion (12.032%; 12.323% and 12.735% Co, mean 12.363%) was analysed by ICP-AES. In addition, a metallic analysis of the sample returned a value of 13.46% Co. (A value of 12.5% equates to 250lb per short ton or 275lb per tonne).
The Birth of a Canadian Cobalt Producer?
It’s always impressive when young companies live up to their own press and meet their own milestones. When Green technology report first talked with Chutter summed up Puget’s cobalt production prospects saying, “The key to the Puget story is that we are simply the best game in town, being the only Canadian Cobalt mine near to production. When demand explodes, end buyers will want to work with a mine their backyard rather than with one in high risk, poor access regions”.
Ambitious words indeed.
Well we heard a tone in her voice that made us think they might just make good on these ambitions and with grade results like these which clearly confirm Werner Lake as a credible primary cobalt project we are very much looking forward to seeing where Puget goes next.
Puget doesn't intend to rest on their laurels and are planning an extensive and aggressive second phase drill program looking to announce the next results in May. Speaking of the future Chutter told us that these great results “ Give us the confidence to move to a production decision sooner rather than later”
The Puget team does not intend to rest on their laurels with more drill results from phase one due soon, they are also currently about halfway through the second phase drill program and are hoping to announce the results in May. Once phase I and II drilling are complete they will be publishing a 43-101 resource estimate. Slated for this summer is an extensive and aggressive expansion drill program.
Speaking of the future Chutter told us that these great results “Give us the confidence to move to a production decision sooner rather than later”
Green technology report likes to end our articles with a link to the companies’ website to encourage readers to ‘follow the company’s progress’ . Well with Puget growing and evolving at this rate you had probably better bookmark it on that laptop that, if you recall, is dependent on a domestic supply of Cobalt. Now if you’ll excuse me I’m putting my headphones back on.
Follow the company’s progress at: www.pugetventures.com.
DISCLOSURE:
A fee has been paid for the production and distribution of this article and as such should be viewed in the context of advertising.
SOURCE: http://www.midasletter.com/news/100503_Puget-ventures-one-step-closer.php
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