In a recent article
Gates, Bezos-backed firm searching for cobalt in Canada (
www.mining.com, July 7, 2020), Cecilia Jamasmie highlights some of the recent positive events for cobalt exploration in Canada.
Here, Ms. Jamasmie explains that KoBold Metals is a start-up mining venture backed by several technology and business world titans, to explore for this metal in Canada, one of the most prolific mining regions in the world. Not only does Canada have mining friendly laws, but mining makes up a sizable portion of GDP and employment in the country. Here, safe and responsible mining operations are the normal course of business in this industry. In this article, she starts by saying that…
KoBold Metals has acquired rights to an area in northern Quebec, just south of Glencore’s nickel mine (Raglan Mine).
KoBold Metals,
a start-up backed by a coalition of billionaires led by Bill Gates (Founder of Microsoft (
NASDAQ: MSFT), plans to scour for cobalt in Canada using advanced mapping technology and it’s targeting northern Quebec, just south of Glencore’s Raglan nickel mine.
The company, founded in 2018, has acquired rights to an area of about 1,000 square kilometres (386 sq. miles), where it plans to begin collecting geophysical data before the end of the year.
KoBold’s backers include big names such as Venture capital firm Andreessen Horowitz and
Breakthrough Energy Ventures. The latter is financed by well-known billionaires including Jeff Bezos (Founder of Amazon (
NASDAQ: AMZN), Ray Dalio (Founder of Hedgefund
Bridgewater Associates), Michael Bloomberg (Founder of
Bloomberg LP and former NYC Mayor), Richard Branson (Founder of
Virgin Group and
Virgin Galactic (
NYSE: SPCE) and Gates (Founder of Microsoft).
KOBOLD METALS, FOUNDED IN 2018, HAS ACQUIRED RIGHTS TO AN AREA OF ABOUT 1,000 SQUARE KILOMETRES, JUST SOUTH OF GLENCORE’S RAGLAN NICKEL MINE
KoBold aims to create a “Google Maps” of the Earth’s crust, with a special focus on finding cobalt deposits. It collects and analyzes multiple streams of data — from old drilling results to satellite imagery — to better understand where new deposits might be found.
Algorithms applied to the data collected determine the geological patterns that indicate a potential deposit of cobalt, which occurs naturally alongside nickel and copper.
Chief executive officer Kurt House believes the company’s exploration activities at the site in Quebec could help prove the value of its approach.
“The subtleties in the geophysical signals are really only evident when you have all of the data and can evaluate it in a systematic, statistically rigorous way,” House told
Bloomberg on Tuesday. “It’s just too much for the human brain to handle.”
KoBold’s boss noted the company was likely to begin collecting geophysical data in the next three to six months. Drilling, House said, could start in a couple of years.
The California-based firm also expects to bring in other investors, potentially including its current backers, on a deposit-by-deposit basis. It will also seek mining-savvy partners once it has identified an interesting project.
Not a Miner
KoBold, as House has stated multiple times, does not intend to be a mine operator “ever.”
This is not the first time the American start-up eyes Canada. Public records show that Faith in Gravity Holdings Inc., which is registered in British Columbia, staked last year
claims in the northeast corner of Saskatchewan.
The holding company’s directors,
according to The Star Phoenix, are Kobold Metals’ top three executives.
(Click image to enlarge)
Currently, about 65% of the world’s cobalt is mined in the Democratic Republic of Congo, much of it by hand and
employing children and young men.
New cobalt mines outside the DCR could become the preferred source of ethically-mined cobalt in the medium-term.
A company that has recently restructured and refinanced in the EV Battery energy metal exploration space is
Fuse Cobalt Inc. (
TSX-V.FUSE,
OTCQB: FUSEF,Forum). Fuse Cobalt Inc. is a Canadian-based mineral exploration company focused on the exploration of high value metals such as cobalt, required for the manufacturing of batteries.
Of note, Fuse also has a long-term business relationship with Mining Giant and the world’s largest cobalt producer,
Glencore PLC (
LSE: GLEN) having purchased the
Glencore Bucke Cobalt Property from them, and along with ownership of the adjoining
Teledyne Cobalt Property, Fuse has a 100% owned large land position located in the historic cobalt mining region of Cobalt, Ontario Canada. These properties have three distinct agreements with Glencore, namely a back-in provision, a production royalty and an off-take agreement.
Mr. Setter, Fuse President & CEO, commented:
“This recent activity from such knowledgeable and powerful people like Bill Gates, Jeff Bezos, Mike Bloomberg and Richard Branson, confirm that FUSE is on the right path to secure a cobalt metal resource in Canada. Canada is a friendly and supportive mining jurisdiction and Fuse is in a solid position to capitalize on this heightened interest in Canadian cobalt to supply the global technology and EV industries.”
Strategically, Fuse’s Ontario Cobalt Properties cover the southern extension of the former producing 15 Vein on the past-producing Agaunico Mine Property. Historically, the Agaunico Mine produced 4,350,000 lbs. of cobalt and 980,000 oz. of silver during the mining boom of the early 1900’s (Cunningham-Dunlop, 1979). Recent 2017 drilling on these Ontario cobalt properties revealed intersections of
21.9% cobalt over 0.36 M and
18.7% cobalt Over 0.15 M at
Teledyne, (News Release Jan 18, 2018), plus intersections of
8.42% Cobalt over 0.30 metres on the
Glencore Bucke Property (News Release Jan 17, 2018).
Mr. Setter goes on to state:
“Vertical integration between battery manufacturers and auto makers with exploration companies like Fuse appears to be inevitable. We find that global technology companies and global EV automakers themselves are in the best position to facilitate the mining required to supply them with cobalt, lithium, nickel and other input metals from safe jurisdictions. These manufacturers have cash flow and access to financing to fund these exploration operations. The world’s largest technology companies like Microsoft, Apple (NASDAQ: AAPL), Amazon, Tesla (NASDAQ: TLSA) and others are very interested in securing a safe and ethical supply of this strategic metal internationally for their global supply chains. Canada is a shining example of this type of safe and ethical mining jurisdiction.”
To learn more about Fuse Cobalt Inc., click
here.
FULL DISCLOSURE: Fuse Cobalt Inc. is a client of Stockhouse Publishing.