The localized surface plasmon resonance (LSPR) of nanoparticles can be a powerful and sensitive probe of chemical changes in nanoscale volumes. Here we have used the LSPR of silver (Ag) to study the oxidation kinetics of nanoscopic volumes of cobalt (Co) metal. Bimetal nanoparticles of the immiscible Co-Ag system prepared by pulsed laser dewetting were aged in ambient air and the resulting changes to the LSPR signal and bandwidth were used to probe the oxidation kinetics. Co was found to preferentially oxidize first. This resulted in a significant enhancement by a factor of 8 or more in the lifetime of stable Ag plasmons over that of pure Ag. Theoretical modeling based on optical mean field approximation was able to predict the oxidation lifetimes and could help design stable Ag-based plasmonic nanoparticles for sensing applications.