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On July 17, 2017 Cobalt Power Group (CPO.V) announced the discovery of a new mineralized zone on the Smith Cobalt project in Cobalt, Ontario. The zone is at surface – about 800 meters S.E. of the Smith Cobalt shaft.

Ground crews have cleared 4,000 m² to map and channel-sample the new area prior to developing a drill strategy.

The initial discovery was a single calcite vein, about 4” wide, with abundant cobalt bloom. A channel sample taken across the vein assayed 12.5% Cobalt, 82.2 g/t silver, 4.99 g/t gold and 0.53% Nickel.

For a geologist – that’s a Christmas basket with caviar, single malt scotch, opium and two business class tickets to the British Virgin Islands.

“The discovery of an additional mineralized zone on our Smith Cobalt project is fantastic news,” stated Andy Rompel, President & CEO. “Aligning these new veins with the already known veins at the historic Smith Cobalt mine will expand our knowledge of the silver and cobalt-bearing mineralization.”

CPO is focused exclusively on the exploration and development of cobalt.

That’s a good thing.

Cobalt is a critical ingredient in lithium-ion batteries.  It is currently climbing the mother of all demand curves.

Walking down the aisle at London Drugs this morning, the only two visible products that didn’t come with re-chargeable batteries – were sunscreen and Silly Putty.

In India and Africa, cell phones are called “leap frog technology”.  90% of the people who own cell phones, never had land lines.

The 12-month cobalt spot price chart reflects the ravenous global demand.

As companies like General Motors (GM.NYSE), Apple (AAPL.NASDAQ) and Ford (F.NYSE) look for North American supply lines – there is an impending cobalt shortage.

But let’s not get distracted by the macro fundamentals.

We know that Cobalt Power Group in on the right continent, in the right region, developing the right product – but how good is the geology?

To figure that out you need to drill down into the 45-page 2016 Technical report, prepared by Eagle Geophysics.  When we say “you need to” – what we really mean is: “don’t bother – we’ve done it for you”.

Here’s the Coles Notes from the Tech Report:

  1. CPO geologists dangled this “White Eagle” [see below] from a helicopter and ran grid patterns over the 2,134 acre property.

  1. A machine monitoring the “Quadrimag Gradiometer” emitted a serious of high-pitched electronic farts, causing two middle-aged geologists to spontaneously “do the funky chicken”.

  1. Later, in a bar, the energized geologists discovered that the phrase “Magnetic Tilt Derivative” does not work as an aphrodisiac on small-town Ontario women.

  1. The technical report concluded that, “Many of the identified structures could have been conduits for hydrothermal transportation of mineralization and should be closely examined in areas where they intersect intrusions, folds or other features of interest. Grab samples should be taken in areas where surface exposure is more likely (characterized by a strong, sharp magnetic signature) along with a soil chemistry analysis, both of which may provide valuable information in advancing this exploration program.”

A few months after the publication of that report, CPO launched a Phase 1 diamond drilling program on its Smith Cobalt propertyThe objectives of the 1800-metre drill program were to:

  • Expand the Company’s knowledge of the geological setting of known veins that extend from the nearby Deer Horn Mine onto the Smith Cobalt property.
  • Extend the strike length of those veins from the historic Smith Cobalt underground workings toward the southeast.
  • Confirm the values received from muck pile sampling
  • Make initial determinations of grade and thickness of the cobalt- and silver-bearing veins.

On July 17, 2017 CPO announced that “the drill program at Smith Cobalt has been completed, with a total of 1,897 meters drilled in nine drill holes. Core logging and sampling is close to completion.  Assays are pending and the results will be released once they have been received and reviewed by the company.”

A phone call to the Cobalt Power revealed that the drill results are expected to be released within 2-3 weeks.

Unlike a grassroots cobalt play, CPO already knows where the high-grade veins are located, making the drill results even more significant.

If you want to invest in the current technological revolution, cobalt is one way to do it.

CPO is trading at .09 with a market cap of $5.2 million.

Buy now?  Wait?  Don’t buy?

Your call.

FULL DISCLOSURE:  Cobalt Power Group is an Equity Guru marketing client.

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

Lukas Kane

Lukas Kane is a Vancouver-based investor and writer.Previously the CEO of a North American investment news syndicate, Mr. Kane was also the Communication Director for a consortium of resource extraction companies.In the course of his career, he has toured copper mines on the Antagfonasto desert in Chile, potash projects in Saskatchewan, cannabis labs in California and clothing factories in Shenzhen, China. A rudimentary speaker of Mandarin, Mr. Kane’s passions are his family, writing and playing football (real football - with the spherical ball).

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Leo
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Thoughts on the trading halt?