“Cruz is focused on acquiring, developing or joint venturing high quality cobalt prospects,” Cruz Cobalt Corp. (CUZ:CA)(BKTPF)(FBR02:FSE) President James Nelson said in a statement earlier this year. He is making good on his word. The company just announced that they have applied for a drill permit for their Coleman Cobalt Prospect in Cobalt, Ontario. The prospect represents one of four in Ontario, all surrounding a very promising mining district. Considering that cobalt prices surged to a new high to close out last week, and are now on the verge of breaking through $28 per pound, Cruz’s timing couldn’t be better.

“This now makes four separate work permits surrounding the town of Cobalt that we have recently applied for,” Nelson stated in the announcement. “Cruz is one of the single largest landholders in this exploding Cobalt district. Recently we have seen an attempt to try to consolidate the district. As this consolidation continues we feel that being one of the single largest landholders, and acquiring our claims well over a year ago, before most were looking in the area, puts Cruz in an opportunistic position going forward. Cruz is expecting to perform work programs on multiple projects in Ontario, Idaho and Montana, making Cruz one of the most active junior cobalt companies in the second half of 2017, at a time when Cobalt prices are trading at nine-year highs.”

Nelson and his team feel confident in their strategic position because they were out accumulating prospects before cobalt was on anyone’s radar. Cruz bought nine properties well before the boom, specifically targeting the resource-rich region of Cobalt, Ontario.

In early June, Cruz retained precious and base metals expert Toby Hughes (P. Geol, P. eo) as a consulting geologist to focus on this important area. Hughes brings with him over 35 years of global mineral exploration experience, including extensive experience in the cobalt space.

“We are extremely fortunate to have retained a geologist of Mr. Hughes stature and extensive cobalt background to quarterback Cruz’s multiple Ontario cobalt prospects,” Nelson said at the time. “Cruz has been able to amass what we feel is one of the most diverse suites of cobalt prospects in North America.”

Here is a breakdown of the four prospects in Ontario:

  • The Coleman Cobalt Prospect: The property consists of approximately 900 contiguous acres in the Larder Lake mining division and appears to be an extension of the Tretheway veins. According to the Province of Ontario mineral file, returned grades of up to 13% Cobalt.
  • The Bucke Cobalt Prospect: The property consists of approximately 1480 contiguous acres, also in the Larder Lake mining division. The property returned assays grading up to 13% Cobalt and 240 g/t Silver on this cobalt-focused prospect.
  • The Johnson Cobalt Prospect: The property consists of approximately 900 acres in the Kirkland Lake mining district, and returned assays of over 300 metres grading up to 10.5% Cobalt, 69 g/t AG, 12% NI and .4% CU.
  • The Hector Cobalt Prospect: The property consists of approximately 5,500 acres in the Larder Lake mining division of Ontario and covers multiple cobalt occurrences

The news of the drilling permit in Ontario follows the announcement that Nelson had secured Aaron Powell PLLC (AP), an experienced project manager, to oversee the company’s two prospects in the United States: the “Chicken Hawk” prospect in Montana and the Idaho Star project in Idaho.

Here is an overview of those prospect plus the company’s projects in British Columbia:

  • The Idaho Star Cobalt Prospect: The property is located approximately nine miles southwest of Saltese, Montana, and 19 miles southeast of Wallace, Idaho. This prospect consists of 44 contiguous claims within the prolific Idaho cobalt belt. Geological data gathered shows the area to have been active for mining of cobalt, silver and copper in the past, which was the reason for the acquisition.
  • The “Chicken Hawk” Cobalt Prospect: Located in Deer Lodge county, the property consists of 64 contiguous lode claims covering approximately 1,300 acres. The 64 claims surround 4 patented claims, no less than 15 unclaimed prospects, and 3 unclaimed adits.
  • Three Prospects in British Columbia, including:
  • The War Eagle Cobalt Prospect: According to a Province of British Columbia Mineral file, the property encountered samples of up to 6.41% Cobalt, 3.59% nickel and 7.25% copper.

Cruz understands better than anyone that the time is now for cobalt. Furthermore, the company knows that North American cobalt represents an ethical and stable supply source because the largest producer of the metal, the Democratic Republic of the Congo, continues to be a hotbed of controversy with serious accusations of hostile working conditions and child labor.

Meanwhile, the electric vehicle market keeps ramping up. Volvo just released a statement saying they will now only make electrified vehicles, while Tesla (TSLA) has commenced production on its much anticipated Model 3. Cobalt is the key element inside the lithium-ion battery that powers these vehicles allowing for extended ranges between charging. This is precisely why the price of cobalt has soared 150% since January and 71% so far for the year. Nelson and his team are aggressively securing top experts to develop these well-scouted cobalt locations and capitalize on this historic moment.


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