Cruz Capitalizes on Cobalt Price Surge
Cruz Cobalt Corp. (TSXV: CUZ | OTCBB: BKTPF) (“Cruz”) have long been one of the more aggressive acquirers of top quality Cobalt prospects in North America. Having bought-up significant portions of land surrounding the town of Cobalt when spot prices seemed unattractive to other explorers, Cruz are firing the starting pistol on the next phase of development and are looking to be one of the busiest and most active juniors in the coming months. The company’s stock price has already soared 18.92% in May on the completion of the purchase of their latest site in Montana. The capital and land are in hand, cobalt prices are soaring, and the progression of strategically selected prospects could make the company into a startlingly significant pure-play producer in a time of peak cobalt need.
The issue with cobalt is that it has always been tied to primary nickel and copper production, and oversupply of these has a direct impact on cobalt production. By focusing in on cobalt and making a sincere attempt to sever the ties between the metals, the company is positioning themselves to take advantage of high cobalt demand in times of poor nickel and copper production.
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A combination of falling production in DRC and rising demand from the battery market has sent cobalt prices rocketing this year, from around $15/lb in January to almost $25/lb today, and rather excitingly, a team of scientists from the U.S. Department of Energy’s (DOE) Argonne National Laboratory and Harvard University recently revealed that cobalt could be used as a catalyst to split water in a process that could generate clean solar energy for the entire planet. It has never been more important to generate low-risk and independent sources of cobalt, and North-America is looking like a mighty-fine choice to provide exactly that.
Cruz currently has nine cobalt projects throughout North-America, including four in Ontario, three in British Columbia, one in Idaho and one in Montana; the four Ontario sites are all in close proximity to the historic town of Cobalt, commonly known as the birthplace of hard-rock mining in Canada and previously a powerhouse of cobalt and silver production, and while the area has been quiet for several decades, the recent rush on battery metals has resulted in a new wave of land purchases, one of the largest packages of which now belongs to Cruz.
The next few months look intensely busy for Cruz; the company is applying for exploration permits to begin works on three of its Ontario prospects, Hector, Johnson and Bucke. The permits will allow for mechanized drilling, mechanized stripping, pitting and trenching of bedrock and line cutting to enable proper delineation and assessment of Canada’s premier cobalt address. The company is known for its rapid and aggressive expansion, and if exploration progresses at a similar rate we could be looking at one of the fastest moving juniors in recent history.
Cruz reports having more than enough capital on hand to take on the planned works for the next few months, and management seems extremely confident in bringing these projects to fruition. The emerging applications for cobalt along with the somewhat troubled supply chain of today have analysts talking about 2017 as the beginning of a truly significant bull market on the metal, and with prices at five-year-highs, it’s an outlook with which I find myself in complete agreement
A Sr. Editor and Analyst for InvestorIntel, Lara is an internationally recognized expert in the field of mining analysis and a well-known speaker, Lara has ... <Read more about Lara Smith>