British Columbia-based Canada Cobalt Works, which announced in late May that its process achieved 99% cobalt recovery at the site, is aiming to begin operations in the September quarter at a concentrate production rate of 500 tonnes per day.

The company said SGS Lakefield is currently precipitating metals from the Castle mine's concentrate and crystalising cobalt sulphate from an organic solution for battery sector evaluation. Additionally, the initial three underground drill holes at Castle's first level intersected visually identifiable mineralisation of cobalt and nickel sulphides and native silver.

"Underground drilling and rehab are proceeding extremely well and we eagerly anticipate initial assay results," Canada Cobalt director and mine consultant Jacques Monette said, who added that nearly all equipment for the plant is on-site and feed from the first level is being stockpiled.

"Plans are also being made to allow for underground drilling throughout the winter, so crews are busy and excited as we set the pace in the prolific Northern Ontario Cobalt Camp."

A fourth hole at the mine near Gowganda is now in process, though the company did not indicate a timeline for completion of the hole.