Market Commentary: Cobalt Power—Exploring High-Grade Cobalt in Ontario’s Cobalt Belt - Stockpools

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Market Commentary: Cobalt Power—Exploring High-Grade Cobalt in Ontario’s Cobalt Belt

Written by Cobalt Power Group Inc.

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This is a presentation for Cobalt Power Group Inc., a featured company in our Cobalt Boom contest. Read on to learn more about their current projects, and click here to join week two of The Cobalt Boom. Enjoy! 

This profile is part of an investor education campaign. The profile provides detailed information which was sourced and approved by Cobalt Power Group Inc. in order to help investors make better investment decisions.

Cobalt Power Group Inc. (TSXV:CPO; OTC PINK:CBBWF) is a resource company focused on developing its two cobalt properties - the Smith and Canadian cobalt projects - in Northern Ontario’s prolific Cobalt Camp. As they conduct exploration on the strike extents within the Smith property and continue to build out their presence in the Cobalt Camp, Cobalt Power is working towards being the primary player in the region.

Oftentimes a by-product of silver production, cobalt has seen a significant growth in demand in the last decade as it is a key component of the lithium-ion batteries used in electric vehicles. "To meet the demands of the electric vehicle market, the cobalt supply will have to increase steadily over the next decade and then grow exponentially after that," said Mr. Chris Healey P.Geo Cobalt Power Director. "To do that, we need to bring more new cobalt deposits online, and that is what we are planning to do with our properties in the Cobalt Camp."

The Smith project is a 1,167.7-hectare property made up by five mining concessions that the company acquired over the course of 2016 and 2017. Host to a number of past-producing mines and historical mine shafts, the property has significant historical value associated to the production of silver. Since purchasing the property, Cobalt Power has conducted initial ground work as well as two phases of drilling, the first of which returned results of 0.10 meters of 1.71 percent cobalt and 42.5 g/t silver.

  • In late 2017, Cobalt Power finalized the acquisition of Canadian Cobalt Projects Inc., and increased their presence in the Cobalt Camp by an additional 7,567 hectares.
  • In February 2018, Cobalt Power announced a share purchase agreement to acquire Ontario Cobalt Property Developers Inc., a private company holding 2,944 hectares of prospective mineral claims in the Cobalt Camp
  • In August 2017, Hochschild invested $500,000 in Cobalt Power and will thus have the right to option and joint venture the Cobalt Power property of their choice and add a director to the board.

The Cobalt Power team have years of collective experience in mineral exploration within Canada.


INVESTMENT HIGHLIGHTS

  • Flagship cobalt projects totaling 11,680 hectares in politically-stable, mining-friendly jurisdiction of Ontario, Canada
  • Projects in prolific Cobalt Camp in Northern Ontario
  • Cobalt projects cover projected strike extent along a trend of known mineralized veins
  • Smith Cobalt project enabled with significant existing infrastructure
  • Canadian cobalt project with prolific past-producing Silver mine on the property
  • Strategic partnership with mid-tier silver producer Hochschild Mining
  • Addressing the needs of a growing cobalt demand


Smith Cobalt Project

The Smith cobalt project is made up of five high-grade silver and cobalt mining concessions that were acquired over the course of mid 2016 to mid 2017: Smith Cobalt; Proteus; Kirk Lake; Bende and Kingston; and Coleman Township. The land package is 1,169.7 hectares in size and is located in Ontario’s prolific Cobalt Camp., supported by easy road access and access to water.

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History

The Smith property is located adjacent to the historic Deer Horn mine (Cross Lake O'Brien mine) which is reported to have produced approximately 11 million ounces of silver and 100,000 pounds of cobalt. A number of the silver-cobalt veins from the Deer Horn mine extend into the Smith property.

Within the property itself, the Smith cobalt mines produced 10,027 pounds of cobalt in 1935. Following that, further exploration was conducted on the property, with 1,831 meters of drilling conducted in 1959. Between 1984 and 1986, both the Smith Cobalt and Proteus concessions were drilled, and further ground work and sampling were conducted between 2000 and the Cobalt Power acquisition in 2016.

Exploration Initiatives

Since acquiring the Smith Cobalt land package, Cobalt Power has conducted initial exploration activities alongside two phases of its drilling program. To begin with, the company conducted an extensive surface sampling initiative, during which ten samples were taken from a muck pile covering an area estimated to contain 5,000 to 10,000 tonnes of crushed rock. Results from these included results of an average 0.5 percent cobalt, 5.55 g/t silver and 0.16 percent copper in the muck pile, and an average 5.81 percent cobalt, 89.1 g/t silver and 0.09 percent copper from rock samples. The company also conducted an airborne geophysical survey, which covered 885 line kilometers, evaluating the surface topography of the property.

Cobalt Power launched its first phase of drilling in the summer of 2017, during which it drilled 9 holes covering a total 1,896 meters. With the goal of verifying the trace of vein swarms mapped in historical mine workings, the drilling intersected various zones of high-grade cobalt and silver, as well as some instances of base metal mineralization. Assay results included 0.10 meters of 1.71 percent cobalt and 42.5 g/t silver as well as 56 meters of 1.85 g/t silver.

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The second phase of drilling was launched in September 2018, and the company expected to drill up to 2,000 meters across 10-15 holes. Results from the phase 2 drill program are expected in the near future.

Moving Forward

Moving forward, Cobalt Power will continue its mapping, trenching and geophysics programs across the property. During the winter season, it will also be consolidating and analyzing existing data from the property, using this and the airborne geophysics program to help better determine the drill targets for the phase 3 drilling program to be conducted in mid 2018.

Additionally, the company has also hired a contract to develop an NI 43-101 technical report on the property, to also help identify the drill targets and additional value of the property.

Canadian Cobalt Project

In December 2017, Cobalt Power finalized the acquisition of Canadian Cobalt Project Inc., which included their Canadian cobalt project within the Silver Center region of the Cobalt Camp. The property is easily accessed by road and highways, and has ready access to power and water.


The 7,567-hectare property is made up of 43 mining claims and one mining lease nearby a number of historic mines, such as the past-producing Keeley and Frontier mines, which were active for 60 years and produced over 19 million ounces of silver and 3 million pounds of copper. The property also hosts the past producing Silver Eagle mine, which produced 8,000 ounces of silver as one of the most prolific producers in the Silver Center.

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Project Geology

The Canadian cobalt land package is underlain by Huronian Cobalt Group metal sediments and host several known cobalt occurrences, which have all been reported in Ontario Mineral Deposit Inventory files. These occurrences include the Labine-McMahon showing, from which samples collected from a quartz-carbonate vein in 1956 returned results of 32.54 percent arsenic, 4.85 percent iron, 21.09 percent cobalt, 1.18 percent nickel, 6.26 percent bismuth and 0.09 percent zinc. This is complemented by the Friday Creek showing, which has a 20-centimeter quartz-calcite vein with 17 g/t silver.


ADDITIONAL PROJECTS IN THE COBALT POWER PORTFOLIO

Bronwell Lake Project

Alongside its Ontario cobalt properties, Cobalt Power also holds a 30 percent interest in the 10,850-hectare Bronwell Lake property in Northeastern Saskatchewan. The property covers a number of gold prospects and showings linked to fault and shear zones of the Bronwell Lake Greenstone Belt.

The property has seen a total 894.5 meters of drilling across five holes, which was conducted in 2007. Drilling results include assay values of up to 13 g/t gold across 0.65 meters and 1.52 g/t gold over 11.6 meters.

In 2012, the company conducted further exploration on the property, collecting 135 rock samples, seven of which returned values of over 10 g/t gold. Assay results from a subsequent phase of outcrop sampling showed values of up to 25.1 g/t gold over 1.03 meters and 4.1 g/t gold over 5.1 meters.

Laurier Graphite Project

The Laurier graphite property is made up by eight mining claims located in the highly prospective Central Metasedimentary belt, in Ontario’s Laurier township, 40 kilometers away from North Bay. Easily accessed by roads, the property hosts four graphite occurrences, two of which are being prepared for production.

In 2012, the property underwent a field program, which included ground geophysics, prospecting, mapping and sampling. This program was used to verify historical work and confirmed the presence of high-grade graphite, with results of up to 22 percent graphite.


MANAGEMENT AND DIRECTORS

Chris Hopkins, CA MBA - Director

Mr. Hopkins is a commerce graduate of the University of Toronto and a Chartered Accountant.  Mr. Hopkins is also the holder of a Masters of Business Administration degree following his graduation from the Schulich School of Business at York University.  Mr. Hopkins has more than 25 years’ experience in financial management focused in the resource industry.  Past tenures include senior roles with public mining companies, including U.S. Silver, Rio Algom, BHP Billiton, Suncor as well as several Canadian and international junior mining companies.

Chris Healey, P.Geo - VP Exploration, Director

A professional geologist licensed in Saskatchewan and British Columbia, Chris Healey earned a Bachelor of Science degree in geology from the University of Wales in 1968. He brings over 48 years of experience in the natural resources industry, covering all aspects, from early stage exploration through development to production. His expertise covers a wide variety of mining methods, including narrow vein precious and base metals. He was President & CEO of Titan Uranium Inc., a Tier One TSX.V listed company, where his responsibilities included the permitting of a major mine and mineral recovery facility.

Isac Burstein, BSc, MSc, MBA - Director

Isac Burstein joins the Company from well-established senior mining producer Hochschild Mining, where he has been a geologist since 1995. Prior to his current position as VP Exploration and Business Development, he served as Manager for Project Evaluation, Exploration Manager for Mexico, and Exploration Geologist. He holds a BSc in Geological Engineering from the Universidad Nacional de Ingenieria in Peru, an MSc in Geology from the University of Missouri, and an MBA from Krannert School of Management at Purdue University in Indiana, USA.

Brian Murray - Director

Mr. Murray holds a Bachelor of Science degree from the University of Toronto and a Masters of Business Administration degree from York University.  He is a Certified Public Accountant with 20 years’ experience in public accounting.  Since 1990, he has been President of the financial consulting firm Murcon Ltd. With over 25 year’s experience in the resource industry and financial markets, Mr. Murray and has served as a director and/or officer of several publicly listed companies, including his present role as President, Director & CEO of Cava Resources Inc. and SBD Capital Corp.

Glenda Kelly - VP Corporate Communications and Director

Ms. Kelly is an investor communications professional and is experienced in business development. As a a co-founder of Rainier Resources Ltd., she served as Vice-President and Director. She has also worked extensively as a business consultant and advisor in areas of financial reporting, private placements, news releases, and investor communication. She is a past member of the Canadian Investor Relations Institute; and will be managing the communication, finance department and social media marketing. Her role as corporate secretary is backed by many years of board experience, and company corporate and regulatory compliance.

Forward-Looking Information

This is not in any way investment advice nor any sort of stock recommendation. Please do your own due diligence and talk to a qualified investment advisor.

The contents of this article are for informational purposes only. Nothing in this article, in any way whatsoever, should be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy, hold or sell any security. Note the inherent risks when investing in microcap stocks. Prior to making any investment decision, we recommend that you seek outside advice from a qualified and registered investment advisor.

Cobalt Power Group Inc. is a paid marketing client of Stockpools Inc. and one or more of the owners does own shares in Cobalt Power Group Inc.