Developing World-Class Lithium and Cobalt Properties in Canada and Chile
This Surge Exploration Inc. profile is part of a paid investor education campaign.*
Surge Exploration Inc. (TSXV:SUR,OTCQB:SURJF,FWB:DJ5C) is a Canadian mineral exploration company with projects located in the mining-friendly jurisdiction of British Columbia, Canada. The company is focused on acquiring world-class properties with the potential to produce commercial-grade products for buyers around the world. To this effect, Surge has acquired three copper–gold properties in British Columbia and two cobalt properties in Ontario.
The Hedge Hog property has seen extensive historical exploration which included a grab sample that assayed 1.51 g/t gold, 1.37 percent zinc, 0.48 percent lead, 1.20 ppm lead and 1,313 ppm antimony. A fieldwork program is currently underway at the Hedge Hog property. The Hedgehog property is directly beside Barkerville Gold Mines Ltd.’s (TSXV:BGM) Caribou deposit. Barkerville Gold is currently the subject of a takeover by Osisko Gold Royalties (TSX:OR), valuing the company at C$338 million.
The company’s Mineral Mountain property has seen off and on exploration since the 1940s, but remains largely unexplored. Surge intends to conduct an extensive two-phase exploration program on the property to follow up on gold anomalies found by previous operators. Nearby the Mineral Mountain properties is the Lorraine deposit (jointly owned by Teck Resources Limited (TSX:TECK.A) and Sun Metals Corp (TSXV:SUNM)), the Stardust deposit (wholly-owned by Sun Metals) and the Kwanika deposit (jointly owned by Serengeti Resources Inc. (TSXV:SIR) and Posco International Corp.)
Surge has also staked the 213-square-kilometer Trapper Lake project next to Brixton Metals Corp.’s (TSXV:BBB) Thorn project and Newmont Goldcorp’s (NYSE:NEM,TSX:NGT) past-producing Golden Bear mine in northwestern British Columbia. The property is prospective for copper, silver and gold.
Surge’s two Ontario cobalt projects, Teledyne and Glencore Bucke properties, are adjacent to one another and share similar geological structures. They are located within proximity to the past-producing Agaunico cobalt mine. These properties have a historic cobalt resource on them. The Teledyne property has an inferred resource of 60,000 tons and a probable reserve of 40,000 tons with an average grade of 0.45 percent cobalt and 0.6 ounce per tonne silver. Glencore Bucke has an inferred resource of 60,000 tons and a probable reserve of 15,000 tons with an average grade of 0.45 percent cobalt and 3.0 ounce per tonne silver.
Surge’s Board of Directors benefits from the experience of Tim Fernback. Fernback has a wealth of experience in the financial sector and has been responsible for over 50 IPOs and over 100 reverse-mergers as an investment banker and venture capitalist.
Surge’s Company Highlights
- Operating in the mining-friendly jurisdictions of British Columbia and Ontario, Canada.
- Extensive historical exploration at the Hedge Hog property in British Columbia.
- A fieldwork program at Hedge Hog is currently underway.
- Exploration potential at Mineral Mountain copper-gold project in British Columbia.
- The Trapper Lake project is adjacent to Brixton Metal’s Thorn project and Newmont Goldcorp’s past-producing Golden Bear mine.
- Ontario properties are in proximity to the past-producing Agaunico cobalt mine.
- Glencore Bucke has a historical inferred resource of 60,000 tons and a probable reserve of 15,000 tons with an average grade of 0.45 percent cobalt and 3.0 ounce per tonne silver.
- Teledyne property has a historical inferred resource of 60,000 tons and a probable reserve of 40,000 tons with an average grade of 0.45 percent cobalt and 0.6 ounce per tonne silver.
- Significant shareholders include Wellington Shields & Co., a registered NYC-based broker, dealer, investment banker and long-time member of the NYSE.
Hedge Hog Copper-Gold Project
In November 2017, Surge entered into a property option agreement with Eastfield Resources Ltd. (TSXV:ETF) to earn a 60 percent undivided interest in seven mineral tenures known as the Hedge Hog property. The Hedge Hog property covers 2,418 hectares and is located approximately 80 kilometers northeast of Quesnel, British Columbia and 20 kilometers north of the historic mining towns of Wells and Barkerville, British Columbia.
The property is accessible by Highway 26 and by service roads. The property can access a power line that services local residents and the Bowron Lake Provincial Park and extends along the Bowron Lake road.
During the 1980s and 1990s, there was a rush of exploration in the Wells-Bakerville area due to discoveries found at the Chu Chua deposit north of Kamloops and the Kudz Ze Kayah, Wolverine and Fyre deposits in the Yukon Territory. The area boasts well-known placer gold deposits which have an approximate four-million-ounce historic production rate and an approximate 1.2-million-ounce historic production from historic lode gold deposits. However, the first recorded exploration around the Hedge Hog claims occurred in 1984 and 1985 by Ben Gunsen.
In 1998, volcanic massive sulfide was uncovered by prospectors in a roadside ditch approximately 800 meters southwest of Lottie Lake. Samples were taken and a float was conducted on the material. The sulfide boulder graded 24.3 percent copper and 19.6 g/t silver.
In 1999, Eureka Resources acquired the Lottie project from the prospector and the company conducted a series of soil and till geochemistry sampling, ground electromagnetic and magnetic surveying and backhoe trenching where the float samples were taken from. The test pitting revealed angular blocks of chalcopyrite rich massive sulfide, but the source of the minerals was not found.
In 2000, Hudson Bay Exploration and Development optioned the property from Eureka and conducted bedrock and surficial till mapping, soil, and moss mat geochemistry, trenching, ground geophysics and a four-drill hole (556 metre) program before relinquishing the option in 2001. Hudson Bay also tested several samples of the chalcopyrite rich massive sulfide material recovered by Eureka and averaged a grade of 8.7 percent copper, 9.59 g/t silver and 145 ppb gold.
In 2001, Eureka identified EM conductors two km south of the Lottie copper float area and completed two diamond drill holes (129 meters) and concluded that the conductors were the result of graphitic sediments.
In 2013, Eastfield acquired the mineral tenures for this area and implemented a rock and stream sediment sampling program. Altered rhyolite was identified in several float samples and returned two samples that graded 0.93 percent and 0.34 percent copper respectively. Approximately eight kilometers north of Lottie Lake, an outcrop of altered sheared rhyolite was identified and sampled. A grab sample from this area assayed 1.51 g/t gold, 1.37 percent zinc, 0.48 percent lead, 1.20 ppm lead and 1,313 ppm antimony. The Golden Sky claim was subsequently staked and is now part of the Hedge Hog property.
In 2014, stream sediment sampling and 6.6 kilometers of soil sampling was conducted at Lottie and 7.4-line kilometers of sampling at the Golden Sky. An additional 4.7-line kilometers of reconnaissance induced polarization and resistivity surveying was also done at Lottie Lake, where a broad chargeability high was defined by the induced polarization survey near the Lottie float. A quartz pyrite argillite float was sampled and returned an analysis of 797.1 ppb gold and 550.5 ppm arsenic.
In 2015, further reconnaissance prospecting and mechanical test pitting and trenching was completed by Eastfield. Forty-two of the pits encountered bedrock, while five did not. A sample of silicic rock was sent for petrographic analysis. The results displayed that it was a brecciated latite and confirmed the presence of volcanic and sub-volcanic rocks in the vicinity of the massive sulfide boulder field. Further prospecting west of Lottie Lake located a silicified outcropping of pyritized altered argillite south of the placer gold mine located in the area.
In 2018, Surge collected 843 soil samples at Hedge Hog. In the summer of 2019, Surge commenced its summer fieldwork program on the property. The program is expected to consist of test pitting using a mechanical excavator of anomalous sample sites from the 2018 work.
Mineral Mountain Copper-Gold Project
In November 2018, Surge acquired a 100 percent interest in nine mineral claims comprised of 19,665 hectares in north-central British Columbia. The region hosts numerous operating mines and good infrastructure, including experienced exploration and support systems. The property is located approximately 150 kilometers north of Fort St. James. Surge acquired two additional claims adjacent to the property in May 2019, bringing the company’s land position to 26,455-hectares (or 265 sq. kms).
The property has records that date back to the 1940s and has seen off and on exploration. However, the property remains largely unexplored. There are records of stream sediment sampling being conducted on several of the claims and results show that there are anomalous gold zones on the property.
Surge is planning a two-phase exploration program for the property. Phase One will include reconnaissance prospecting, geological mapping and a heavy metal concentrate sampling survey on relevant drainages within the claim blocks. Phase Two will follow up on findings from the Phase One and will focus on exploring higher elevations on the property. Depending on Phase One exploration, the second program could include additional soil sampling, geophysics and trenching.
Trapper Lake Gold-Copper Project
In July 2019, Surge staked 325-square-foot Trapper Lake next to Brixton Metals Corp.’s Thorn project and Newmont Goldcorp’s past-producing Golden Bear mine in northwestern British Columbia. The company expanded the property in September 2019 to provide Surge with additional exploration potential around the former Golden Bear mine. The property is prospective for copper, silver and gold. The property was expanded again to bring the company’s total land position to 325-square-kilometers.
Surge’s Additional Properties
Surge also has two assets in the cobalt space that are also located in Canada. Surge’s interest in cobalt is tied to the rising demand for lithium-ion batteries for use in smartphones, laptops and electric vehicles (EV). Governments around the globe are trying to eliminate or reduce the need for internal combustion engines and are increasing requirements for the production of EVs. For example, by 2030, Germany plans to eliminate the use of gas and fossil fuel-powered vehicles, while countries such as India and Norway are committing to selling only EVs and hybrids in the same time frame. Companies such as Tesla (NASDAQ:TSLA) and Panasonic (TSE:6752) have similarly dedicated millions of square feet to creating gigafactories that will are expected to produce the required batteries.
Ontario Cobalt Projects
Surge has two cobalt properties in Ontario: the Glencore Bucke cobalt property and the Teledyne cobalt property. In May 2018, Surge entered into an option agreement with LiCo Energy Metals Inc. (TSXV:LIC) to earn a 60 percent interest in both properties. Both are subjected to a back-in joint venture provision with Glencore, a production royalty with New Found Gold Corp. and Glencore. The Glencore Bucke project consists of 16.2 hectares and is adjacent to Surge’s Teledyne cobalt project. Meanwhile, the Teledyne project consists of five patented and eight unpatented mining claims that cover an area of approximately 607.1 hectares.
The properties are located approximately six kilometers east-northeast of the town of Cobalt, Ontario and are accessible by Highway 567 and a municipal road that crosses the Glencore Bucke property.
The properties are also on strike with the past-producing Agaunico cobalt mine. Between 1905 and 1961, the Agaunico mine produced a total of 4.35 million pounds of cobalt and 980,000 ounces of silver. Most of the cobalt that was produced at the mine was located along structures that extend southward into the northern boundary of Teledyne property. From 1951 to 1957, the average content of cobalt found within the ore was approximately 0.5 percent. In 1955 alone, the mine processed 62,000 tonnes of ore. A total of 526,000 pounds of cobalt, 146,000 ounces of silver, 117,000 pounds of nickel and 81,000 pounds of copper were extracted from the ore.
Surge’s Management Team
Tim Fernback, MBA, CPA, CMA — President, CEO and Director
Tim has held multiple senior executive positions, including with the Investment Banking and Corporate Finance Divisions at Wolverton Securities. He was responsible for due diligence reviews on corporate clients and investment banking business development relationships. He also planned and opened 3 regional offices in western Canada, and reviewed and analyzed over 300 corporate clients, raising over $750 million. Responsible for over 50 IPOs and over 100 Reverse-Mergers on the TMX and Nasdaq, Tim represented Wolverton nationally on various stock exchange committees and industry groups, including the Corporate Finance Advisory Group and Underwriting Groups on various Canadian exchanges.
Tim serves as a Director for several Canadian mining companies, is an MBA graduate in Finance from the University of British Columbia, holds a Certified Professional Accounting Designation (CPA, CMA) and is an active member of many industry and trade organizations in Vancouver.
Gordon Jung — Director
Gordon has over 35 years’ experience in business operations, including retail, merchandising, marketing and product development for the Overwaitea Food Group, a major food chain in western Canada. His resume includes positions as regional manager for 10 retail stores, the director of marketing for the Save-On loyalty card program, with over 2 million card holders, and senior category development manager credited with achieving double-digit growth putting together isle international foods from around the world. He specializes in strategic planning, developing new opportunities, driving revenues, improving competitive market position, procurement, and product marketing.
Robert Culbert, P.Eng. — Director
Bob is a professional engineer with over three decades of international project and business experience, predominantly in West Africa, Southeast Asia and the Indian Sub-Continent. He was the president of a Vancouver-based land resource and environmental consulting company and an interior BC ski resort; he was a partner in the acquisition and syndication of a large residential real estate portfolio in western Canada. Over the past decade, he has served as an officer and director of several junior resource exploration and development companies. Bob is also a director of Carlin Gold Corporation.
Tina Whyte – Corporate Secretary
Tina Whyte brings over 20 years of experience in the corporate and securities industry. Her expertise spans areas of corporate governance, continuous disclosure, financing transactions and regulatory filings and compliance. She holds corporate secretary positions with other publicly-listed companies.
Simon (Tak Than) Tso, CPA, CFA — CFO
Mr. Tso is the Principal of Athena Chartered Professional Accountant Ltd., a full-cycle accounting firm that assists companies of all sizes with their financial reporting, regulatory filing and taxation requirements. Simon is also a co-founder of Zeus Capital Ltd., a boutique corporate finance firm that specializes in providing financial advisory, valuation and consulting services. Prior to his current roles, Simon spent a number of years as an associate at a local corporate finance firm and as a Senior Accountant at a firm of Chartered Accountants, where he managed numerous private and publicly-traded corporations, commonly acting as their Controller or Chief Financial Officer. Simon graduated with a Bachelor of Commerce (Finance) degree from the UBC Sauder School of Business, and is both a CFA Charterholder and a Chartered Professional Accountant.
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