Issue link: http://resourceworld.uberflip.com/i/783264
F E B R U A R Y / M A R C H 2 0 1 7 www.resourceworld.com 35 • Cruz has recently acquired 8 separate cobalt prospects across North America • The Coleman cobalt prospect consisting of approximately 900 acres in the Larder Lake mining division of Ontario returned grades of up to 13% cobalt and appear to be an extension of the Tretheway veins • Bucke Cobalt Prospect in the Larder Lake mining division of Ontario returned assays grading 13% Cobalt and 240 g/t Silver (historic Ontario data) • The Johnson Cobalt Prospect encountered grab assays over 300m up to 10.5% cobalt, 69 g/t AG, 12% NI and .4% CU (historic data) • The War Eagle Prospect encountered surface samples of 6.41% cobalt, 3.59% nickel and 7.25% copper (historic data) • Cobalt is one of the main elements in Lithium-Ion batteries. CUZ–TSXv BKTPF–USA A2AG5M–Germany 604.899.9150 | www.cruzcapitalcorp.com twitter @CruzCapitalCorp North America's Leading Cobalt Project Generator & Developer roughly 250 miles from Tesla Motors' Gigafactory. The average cobalt grade there is 0.5%. Production is scheduled to begin roughly two years after eCobalt raises the US $150 million in the CAPEX needed for the feasibility study; but even then, at peak production, this deposit would con - tribute only 1,500 tonnes of cobalt per year to a global market of 100,000 tonnes. (As an aside, eCobalt could be takeout tar- get by Tesla.) On the demand side, cobalt has been used for years in magnets, alloys, medi- cal devices, radiation therapy and paints (totalling roughly 50,000 tonnes annually). The largest demand now, though, is in rechargeable batteries. While physics demands they be called "lithium-ion" batteries, these storage devices contain far more cobalt than lithium. The battery in your cell phone, for example, is roughly 60% cobalt by weight. The battery in a laptop is roughly 15% cobalt by weight. In the batteries for electric cars, somewhere between 6 and 12% of the battery's weight is cobalt. This demand is only going to increase. There are roughly 30 electric car manu - facturers globally, from the well-known names like Nissan, Mercedes, Chevrolet and Tesla, to the lesser-known like Chery, SAIC, and CityEl, with more models appearing on the market annually. They all require cobalt for its energy density prop - erties. Tesla's widely marketed Model 3, for example, by itself will consume roughly 7,500,000 kg of cobalt, or close to 8% of global production. This demand is driven by bottom-up consumer demand and top-down govern - ment policy. For example, Germany has said it will ban the sale of combustion engines by 2030. There is nothing to take their place except electric batteries. There is no substitute for cobalt in these batter - ies. The amounts may vary depending LEFT: Geoprobe work at the Dajin Resources Teels Marsh lithium project in the Clayton Valley, Nevada. Pediment Gold LLC is the operator. Photo by Dick Benoit/courtesy Dajin Resources Corp.