Puget Ventures Inc. – Advanced Cobalt Property, Werner West Cobalt Mine

Overview

Puget Ventures Inc. (TSXV:PVS) is a Vancouver, British Columbia-based mining exploration company focused on the acquisition, exploration and development of metals properties, with a current emphasis on the strategic metal cobalt. The Company’s acquisition focus has been on the historically productive Werner Lake Mineral Belt, stretching 60km along a highly mineralized strike and located in the Kenora Mining District of Northwestern Ontario, Canada. Puget is the largest land holder in this region, with a consolidated package of properties which encompass historic deposits and past Cobalt and Nickel-Copper-PGE producers. The existing mines in the area include the Werner Lake Cobalt Mine, Gordon Lake Mine, and Werner East and West Mines and the Norpax Nickel Deposit.

Werner Lake Mineral Belt, emphasis is being placed on the Company’s flagship project, the Werner West Cobalt Mine, as it is one of the few advanced primary cobalt properties in North America.

In late September of 2010, Puget Ventures Inc. and Imperial Mining Holding Ltd., announced they had signed an Indicative Offer to form a multinational cobalt exploration company with cobalt assets in Russia and other mineral assets in Mongolia.

Concurrent with this all-stock transaction, Puget Ventures intends to seek shareholder approval to change its name to Global Cobalt Corporation (“Global Cobalt”) www.globalcobaltcorp.com. Global Cobalt’s new flagship asset would be a Russian project with and historic cobalt resource. The currently known size and scale of the deposit, as well as its potential, suggest a significant cobalt asset. This transaction comes at a time when world demand for cobalt is at its all-time high – the timing for this corporate transformation is ideal.

Investment Highlights

• Puget is growing its cobalt resource through the tactical acquisition of an advanced Russian primary cobalt exploration project.
• Continued exploration in the Werner Lake Belt – potential to become a domestic source of the strategic metal cobalt.

Chief Properties

click to zoom

Werner West Cobalt Mine

The Werner West Cobalt Mine is Puget Ventures Inc.’s flagship Canadian asset and provides the nearest term primary cobalt production in Canada. Werner West is located in the Werner Lake Mineral Belt of the Kenora Mining District in Northwestern Ontario, Canada. Historic non NI 43-101 compliant reserves and resource estimates total 1.1 million tones of 0.31% cobalt, 0.29% copper and 0.011 opt gold.

First mined in 1929, 1932 and most recently in 1940-1944, Werner West is a high-grade cobalt deposit well along the production curve. Historic mining production numbers included 2% and 5% cobalt and grades up to 20% cobalt.

The Company completed 7,616 metres of drilling in 34 holes over the winter and spring of 2009-2010. The initial winter program of 1839 metres in 17 relatively shallow holes was designed to test the bodies within and adjacent to the known ores-hoots of the West Cobalt and Old Mine Site blocks, essentially as part of the due diligence for the NI 43-1010 Resource Estimate which was initiated by PEG Engineering Group. After successful completion of the initial phase, the program was expanded to a spring phase of 5,777 metres in 17 holes, aimed at probing the ore-shoots at depth, and at testing whether the deposits were indeed constrained by an apparent shallowly plunging shoot direction.

In total, 1,839 metres of drilling were completed in 17 diamond drillholes during the Phase I program in spring of 2010. The drilling of the Werner West Deposit returned a 12.30 metre intercept averaging 1.21% cobalt, including a very high-grade interval grading 12.48% cobalt over 0.90 metres. These high-grade intercepts are associated with anomalous copper, nickel and gold values.

Phase II drill results were released in June, 2010, showing a high grade extension of the Werner Lake cobalt deposit. The initial winter program of 1839 metres in 17 relatively shallow holes was designed to test the bodies within and adjacent to the known oreshoots of the West Cobalt and Old Mine Site blocks, essentially as part of the due diligence for the NI 43-101 Resource Estimate which was initiated by PEG Engineering Group.
Historic Data: Reserves & Resources: Werner Lake West and Old Mine Site

Proven Reserves: 140,031 tonnes of 0.475 Co; 0.26% Cu; 0.008 oz/t Au
Probable Reserves: 40,829 tonnes of 0.25% Co; 0.43% Cu; 0.003 oz/t Au
Indicated Resources: 51,456 tonnes of 0.13% Co; 0.26% Cu; 0.003 oz/t Au
Inferred Resources: 507,412 tonnes of 0.31% Co; 0.29% Cu; 0.011 oz/t Au

The Norpax Deposit

The Norpax Deposit is located approximately 7km east of the Ontario-Manitoba border and lies under a lake that has variously been named Tigar and Almo. In addition to the main deposit, other drilled smaller zones are reported up to 500m east and 1000m west with the western trend of mineralisation merging with that of the Big Zone.

The Norpax Deposit Exploration was discovered in the 1950s through 1970s and was explored by underground development as well as surface drilling. Norpax Nickel Mines Ltd. sank a three-compartment shaft to 402 ft in 1958 after surface drilling. Norpax never reached production but in the course of underground development two levels were established at 250 ft and 375 ft depths and a deposit delineated aggregating 1 million tons grading 0.5% Copper and 1.2% Nickel.

In April of 2009, Puget Ventures entered into an agreement with Harper Capital Inc. to earn a 100% option to purchase the mineral interests in the Norpax Property. A drill work program commenced in the fall of 2009 with successful intersections expanding it at depth by 100m and potentially along strike for several hundred metres.

The company says they are continuing to work in order to better define and confirm historical data.

The Werner Lake Minesite Deposit

The Werner Lake Minesite Deposit is located approximately 500m east of the Werner West Cobalt Deposit which is situated 14km east of the Manitoba border and approximately 100m north of the access road between Almo and Werner Lakes.

The earliest recorded claim staking in the Werner Lake area appears to have been in about 1921 when the discovery of what was to become the Werner Lake Mine was made. This property eventually came under the control of Falconbridge predecessor, Ventures Limited, and achieved some production of cobalt ore between 1932 and 1944. Subsequently, Falconbridge undertook more exploration including diamond drilling in 1957. They optioned their claims to Canmine in 1995, who earned a 100% interest in them. Between 1995 and 1997, Canmine drilled a total of 217 diamond drill holes totalling 27,895m on the Werner West and Werner Lake Minesite Deposits and orchestrated site rehabilitation and excavated 3,382 tonnes of cobalt-bearing rock. There are three known lenses contained within the property with proven reserves of Lenses 1 and 2 including 6200 tonnes of cobalt ore grading 0.5% cobalt, 0.3% copper and 0.009 oz/t gold. Lens 3 contains higher tonnage and grade and this trend may well continue at depth with higher grades in undiscovered lenses.

The deposit has undergone various diamond drilling programs by Puget Ventures, improving the delineation and historic resource estimates

Eastern Shallows Cobalt-Copper Deposit

The Eastern Shallows Cobalt-Copper Deposit is located about 4.2km east of the Werner Lake Minesite Cobalt Deposit near the eastern shore of Gordon Lake.

The deposit is a series of lensoidal pods with an eatery strike and is open to the east. Two separate zones, the main zone and the south zone were discovered and delineated by diamond drilling.

Canmine drilled a total of 31 diamond drill holes totalling 3,859m on the Eastern Shallows Deposit between December 1995 and March 1996. A Total of 646 drill core samples were assayed for cobalt, copper, gold and arsenic from the drill program.

A summer work program of surface exploration and prospecting was conducted by Puget Ventures in 2010 to focus on the newly discovered Eastern extension of the Werner Lake Cobalt Deposit located 800m to the east of the current deposit area and on strike to Puget’s Easter Shallows Cobalt Deposit and are currently awaiting results.

Management

Michael Dehn, CEO and Director - Michael Dehn has over 17 years of experience in the mining industry with extensive technical knowledge of the Red Lake district. Mr. Dehn has been an officer or director of several publicly traded and private junior mining companies and worked as an exploration geologist and later as a Senior Geologist with Goldcorp Inc. He is a Director on the Boards of Metalore, Orex Exploration Inc., Argex Mining and Puget Ventures.

Erin Chutter, President and Director - Erin Chutter is the founder of Puget Ventures Inc. Ms. Chutter has provided strategic communications and business development services for a range of public and private Companies. She is the Former Manager of Communications and Strategic Planning for three TSX listed exploration companies.

Chris Couzelis, CFO - Chris Couzelis is President and Managing Partner of C. Couzelis and Company Inc. an accounting firm that provides business services and financial executives to a number of public and private companies including ICO Therapeutics, Bionic Power Corp. and Ability Pharmaceuticals.

Toby Hughes, P.Geo, Project Geologist - Toby Hughes is a registered professional geologist with a career spanning over 27 years, working in Canada, Mongolia, Ghana, Burkina Faso, Venezuela, Guyana, Argentina and Ecuador. His experience comprises of grass roots and advanced stage exploration projects at Chief Geologist level on various commodities including cobalt, gold, copper, zinc, nickel, PGE and diamonds.

Tim Mann, P.Eng, Engineering Advisor - Tim Mann is a mining engineer with extensive international operations and technical management in mine engineering, development and operations. His career spans close to 40 years, including senior operational assignments with Placer Dome and Goldcorp, and extensive consulting experience with SNC-Lavalin. Mr. Mann has been involved in numerous engineering, study and project management assignments overseas and within Canada that includes the Werner Lake Cobalt Project.

Adrian Mann, PhD, P.Geol, Consulting Geologist - Adrian Mann has experience with project evaluation, diamond drill planning and supervision, geological analysis and operational management. He currently holds the position of VP Exploration for Planet Exploration Inc. and serves on the Board. Mr. Mann also works as a consultant for several mineral and oil and gas companies based out of Calgary, Alberta. In addition to his geological responsibilities, Mr. Mann has been responsible for group technical services, including assay laboratories, survey and sampling, grade control and rock mechanics.

Ray Castelli, Director - Ray Castelli is the president and CEO of Weatherhaven, one of the world’s leading manufacturers of redeployable camps and shelter systems. He is the former President of Naikum Wind Development Co-founder and Senior VP of Quadrem, a global supply chain and e-procurement company serving 19 of the world’s largest natural resource companies including Rio Tinto, BHP Billiton, Alcan and Inco. Mr. Castelli is the former Director of Acquisitions for Alcan, former Chief of Staff to Canadian Prime Minister, is a member of the Board of Directors for the Prince Rupert Port Authority, Puget Ventures, Sceptre, and the Working OpportunityFund (Growthworks EVCC) and is a Board member of the Fraser Academy and the BC Business Council.

Dr. Wilson Russell, PhD, Director - Wilson Russell is a long time CEO of Northstar Electronics, a company that develops and manufactures marine electronic systems. He is also president of Cabot Management Ltd., an offshore petroleum consulting company and serves as Director of Zappa Resources.

Jim Dawson, P.Eng, Director - Jim Dawson geld the position of President of Dawson Geological Consultants Inc. and sat on the Board of Directors of both Minefinders Inc. and Kivalliq Energy Corporation. Over the past 36 years, Mr. Dawson has examined, explored and evaluated a number of properties in Canada, the United States and internationally. He has also participated in the discovery of a number of precious and base metals deposits including the Blackdome Mine, the Frasergold and Taurus properties in British Columbia and the Bighorn Mine in Arizona.

Darin Wagner, P.Geo, Director - Darin Wagner is the former President and CEO of West Timmins Mining, a Vancouver-based public mineral exploration and development company. He worked with Cominco’s Project Development team managing base metals exploration and discovery activities in North and South America. Mr. Wagner also worked on the Duck Pond discovery in Newfoundland which achieved commercial production in April 2007 by Teck.