EDITOR: | October 25th, 2016

Cruz Capital increases land holdings for the Bucke Cobalt Project

| October 25, 2016 | No Comments
image_pdfimage_print

On the 18th of October Cruz Capital Corp (TSXV: CUZ) revealed that the Company increased its cobalt property holdings by 36 claim units from the initial 1.25 units. As such, the prospect is now a total of 1,480 contiguous acres and one of four cobalt prospects in Ontario currently held by Cruz.

The prospect is in the Larder Lake mining division of Ontario and the assay results indicate that the deposit contains 13% cobalt and 240g/tonne of silver. The expectation is that exploration will commence in the immediate future as the company has already secured the flow through funds needed to assess the property.

Cruz has eight projects in North America and Seven of their projects are located in Canada and the eighth in Idaho. The overall aim is to build a portfolio of several cobalt projects and to this end the company is actively engaged in acquiring and developing cobalt assets globally.

The development of a cobalt portfolio outside of the Democratic Republic of Congo comes at an opportunistic time and Cruz Capital may be in the position to “ride the wave.” Over the past year the cobalt supply chain has become the focus of attention, first from Amnesty International which shed light on the plight of artisanal miners with specific focus on the Chinese supplier, Huayou and more recently from the Washington Post’s reference to cobalt mined in Africa using child labour.

These revelations call for the final end users such as Intel, Apple, Samsung and Tesla, to name a few, to take custody of their supply chains and ensure that their cobalt sources come from a “clean source” or risk reputational and, most probably, financial damage. As such, the demand not only for cobalt, but also for alternative cobalt sources outside of the Congo is expected to improve. Assuming Cruz could build up its portfolio into near producing or producing cobalt sources, the company will be well-placed to take advantage of this increasing demand trend.

Definitely a company to watch over the coming months. As at 21 October 2016, the share price stood at $0.67/share, representing a 1.52% increase from a week earlier.


Lara Smith

Editor:

The Founder and Managing Director of Core Consultants in June 2009, Lara and her team are committed to supplying high quality commodity market research, analysis ... <Read more about Lara Smith>


Copyright © 2016 InvestorIntel Corp. All rights reserved. More & Disclaimer »


Leave a Reply

Your email address will not be published. Required fields are marked *