The surging price of gold has led to the establishment of numerous new mines in northern Ontario, and a similar trend may be on the horizon for another precious metal. Silver is currently reaching historic highs, with prices around $50 US per ounce. This surge has reignited interest in mining activities around Cobalt, once renowned as the Silver Capital of the World.
Frank Basa, the president of Nord Precious Metals, which now owns the former Castle Mine in Cobalt, expressed optimism about the potential in the area. Silver was initially discovered in Cobalt in 1903, leading to the operation of 34 silver mines and a population boom to 10,000 residents within a few years. Presently, the town’s population is under 1,000.
Basa highlighted the rich history of silver mining in Cobalt, citing reports of 500 million ounces of silver being extracted from the region, with 9 million ounces originating from the Castle Mine alone. Despite the closure of the last silver mine in the early 1980s, interest in the area has been revived.
Nord Precious Metals acquired the Castle Mine property twelve years ago for $25,000, a move Basa humorously described as buying it “with a credit card.” The company managed to produce a 1,000-ounce silver bar from remnants left behind in the mine, showcasing the potential for further extraction.
While the permitting process posed challenges in the past, Basa noted a shift in attitude towards mining at the provincial level, making it easier to navigate regulations. Nord Precious Metals aims to open an underground mine in the coming years and intends to extract more silver from waste rock and tailings by next year.
The resurgence of interest in mining silver in Cobalt extends beyond Nord Precious Metals, with other companies eyeing opportunities to extract critical mineral byproducts like nickel, copper, and cobalt. Basa expressed enthusiasm for the growing interest in the region, describing it as a positive development that has injected new life into the mining camp after decades of dormancy.