Cruz Capital moving forward as a lead cobalt project generator and developer
Cruz Capital Corp. (TSXV: CUZ) announced on 23rd November 2016 that they had acquired a further 137 claim units for The Hector Cobalt Prospect. Hector Cobalt is currently one of four cobalt prospects in Ontario currently held by Cruz, along with three in British Columbia and one in Idaho. The company is focused on identifying, acquiring, and exploring North American cobalt prospects with the aim of cementing themselves as the foremost cobalt project generator and developer on the TSX Venture Exchange. The venture is driven by rapidly increasing demand for Cobalt since prices began to experience recovery in 2014, and is part of a wider pursuit of valuable metal sources in more politically stable and ethically sound areas than the currently market-dominant Democratic Republic of Congo (DRC).
In reality only 10-15% of all cobalt produced in the DRC is from illicit mining, but to have this end up in the supply chain at all is problematic for any end-users and therefore we expect that end-users such as Intel, Apple, Samsung, Siemens, Panasonic etc will want to ensure that the cobalt is produced in an ethical way and if possible and competitively priced, would prefer cobalt from North America over the DRC.
Cruz President, James Nelson, stated,
“We continue to expand our cobalt projects. The Hector Cobalt Prospect, according to the Government mine-file, was a past producer for cobalt, which compliments the stable of high quality cobalt prospects Cruz currently has. This new addition also covers multiple other cobalt showings based on Government of Ontario data. We are very excited about the growth potential for Cruz as we continue to add cobalt assets at a time when Cobalt is making year highs almost daily. Cruz is focused on high grade cobalt assets in North America and we look forward to getting operations underway on multiple cobalt prospects. With 8 current cobalt projects in the Company, we believe Cruz is in a unique position at the forefront of what we feel will be an impending global cobalt boom.”
The Hector Cobalt Prospect now consists of approximately 5,500 acres in the Larder Lake mining division of Ontario. The Company’s projects include the BC War Eagle Cobalt Prospect, the Johnson Cobalt Prospect, the Bucke Cobalt Project and the Idaho Star Cobalt Prospect.
The Johnson Cobalt Prospect consists of approximately 900 acres in the Kirkland Lake mining district of Ontario; from 1980, grab assays over 300 metres returned up to 10.5% Cobalt, 69 g/t Silver, 12% Nickel and 0.4% Copper.
The Bucke Cobalt Prospect represents approximately 1480 acres of company assets in the Larder Lake mining division of Ontario, and returned assays grading 13% Cobalt and 240 g/t Silver on this cobalt-focused prospect.
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Cruz’s Idaho Star Cobalt Prospect is located approximately 9 miles southwest of Saltese, Montana, and 19 miles southeast of Wallace, Idaho, and consists of 44 contiguous claims within the Idaho Cobalt Belt.
Core Consultants updated its cobalt forecasts on 10 October 2016. The company expects that the cobalt market will be around 8,700 tonnes in surplus this year, followed by a balanced market in 2017. From 2018-2020, the cobalt market should be in deficit of around 7,400 tonnes in 2018 and increasing to 12,000 tonnes by 2020. As such, we should continue to experience price increases from this level as global consumption rises above the 120,000 tonnes mark in 2018. Should there be any disruptions in the DRC, we could see further tightening of supply over the next four years. The major demand driver for Cobalt is the ever-multiplying application of Lithium-Ion batteries to consumer electronic products in the absence of a replacement solution.
The greater uptake of Lithium-Ion battery solutions post-2017 is forcing battery producers to begin sourcing the raw materials for the cobalt-based cathodes necessary for electric vehicle production and grid-storage energy systems. Cruz’s management has the skill to rapidly evaluate properties to either develop and advance them towards production. Cruz now holds eight cobalt prospects, a significant way to achieving its goal of being the top cobalt project generator and developer on the TSXV.
Lara has been an analyst for over ten years, starting her career as an equity analyst at Foord Asset Management and more recently as the ... <Read more about Lara Smith>