New mining plans for Keely Frontier

Plans to rework the old Keely Frontier mine in northeastern Ontario for its cobalt are in the works.

Transway Capital (CDN) has entered into an agreement with Sassoon Metals of Switzerland to raise $5-8 million, likely by way of a private placement. Sassoon will gain the exclusive right to market the cobalt for five years. Situated south of the town of Cobalt, Keely Frontier built its reputation as a prolific producer of silver and cobalt between 1908 and 1932. It has been closed since 1965. A report by Derry, Michener, Booth & Wahl states that the mine produced 19.2 million oz. silver and 3.3 million lb. cobalt. during its life, with the Woods vein accounting for about 70% of the output. Development plans are in the early stages. The old mine workings, which include a 1,400-ft. shaft and about eight levels, will have to be dewatered. “This year, definitely, we’ll bring it to feasibility,” President James Hunter says.

Transway recently sold 10,000 tons of cobalt tailings and waste rock from Keely Frontier to Ego Resources (TSE).