Cobalt-focused Cruz Cobalt intends to start operations at its cobalt projects in Ontario, Canada.
Cruz is one of the largest landholders in the historic silver/cobalt-producing region of Cobalt, Ontario, and the company's projects are in the direct vicinity of TSX-V-listed Fuse Cobalt and TSX-V-listed First Cobalt.
In December last year, the Canadian and Ontario governments announced a joint $10-million investment in the First Cobalt Corp refinery, located in Cobalt, Ontario.
Once operational, this refinery will be North America's only producer of cobalt sulphate for the electric vehicle (EV) market.
Cruz’s Ontario properties are in the direct vicinity of First Cobalt’s cobalt refinery.
According to Adamas Intelligence, during the month of November 2020, lithium used in newly sold EVs jumped 134% year-on-year, topping 10 000 t for the first time. Deployment of cathode material cobalt doubled, while nickel use was up by 85% compared with the same month in 2019.
However, the management of Cruz cautions that past results or discoveries on properties in proximity to Cruz may not necessarily be indicative of the presence of mineralization on the company’s properties.
“Cruz is excited to have a robust portfolio of battery metals projects at a time when cobalt prices are at a two-year high and lithium prices are showing strength,” states Cruz president Jim Nelson, adding that the company is seeing a significant surge of global investor interest in the battery metals sector as the demand for EVs is “exploding”.