US Cobalt Inc: Committed to Becoming An Integral Part of the North American Cobalt Supply Chain
Consistent with its objective of becoming a powerful player in the North American cobalt supply chain, Scientific Metals recently changed its name to US Cobalt Inc. (TSX-V:USCO, OTC: SCTFF). USCO has also recently contracted Timberline Drilling, a company experienced in the mountainous terrain of central Idaho, to drill a minimum of 30,000 feet during 2017. This drilling program will focus on confirming USCO’s historical data and investigating extensions. Focusing on the patented claims at USCO’s Iron Creek Cobalt Project in Idaho, the deepest holes in the program will reach a depth of 1,300 feet.
As previously announced, previous tonnage and grade estimates indicate that the Iron Creek property contains 1,279,000 tons grading 0.59% cobalt. Based on historical records which have now been reviewed and digitized, USCO is encouraged that this program and other drill programs to follow will disclose significantly more cobalt than was previously identified.
USCO plans to begin drilling within a couple of weeks and investors can expect a steady flow of exploration updates throughout the summer and into the fall.
The Company is also making good progress on the rehabilitation of the underground workings at Adit #1. The timbers at the portal have been removed and replaced, and the focus of work is now laying new rail into the tunnels. When complete, the tunnels accessed from Adit #1 will be channel sampled and mapped. The results of this sampling and mapping work will subsequently help to guide drilling both from surface and underground. There are also two other adits at Iron Creek which will be rehabilitated, sampled, and mapped in similar fashion to Adit #1.
The goal of the 2017 exploration program is to gather more information to upgrade the size and grade of the Iron Creek Cobalt Project, and to be able to have an updated, compliant 43-101 resource estimate by the end of the year. In addition, USCO plans to ship sample ore to a nearby mill to better understand the nuances of the metallurgy at Iron Creek.
One of the most exciting aspects of USCO from an investment perspective is the company’s impressive property package – 90 claims covering 1,800 acres. The 2017 exploration program is focused on less than 10% of USCO’s total Idaho property package:
USCO’s Iron Creek Cobalt Project also boasts a higher than average grade than its two closest peers; .61% cobalt (with a .3% copper component) compared to eCobalt’s .55% at its Idaho Project and Global Cobalt’s .31% cobalt grade at Werner Lake in Ontario, Canada.
USCO’s timing is ideal as global cobalt demand and the resultant shortages have already kicked into gear:
USCO’s focus on North American, ethically-sourced cobalt has been rewarded with strong share price performance:
Even after a 200%+ YTD increase, the company still has a modest C$33 million market cap (50.3 million shares outstanding). Given the grade, the jurisdiction, the historical data, the permitting and the critical shortage of cobalt, it appears that opportunities for investors remain.
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. US Cobalt Inc. is a high-risk venture stock and not suitable for most investors. Consult US Cobalt Inc.’s SEDAR profile for important risk disclosures.
EnergyandGold has been paid to cover US Cobalt Inc. and so some information may be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
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