Cobalt Power Group Inc.

Exploring High-Grade Cobalt in Ontario’s Cobalt Belt

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Overview

Cobalt Power Group Inc. (TSXV:CPO; OTC PINK:CBBWF) is a resource company focused on developing its two cobalt properties—the Smith and Canadian cobalt projects—in Northern Ontario’s prolific Cobalt Camp. As they conduct exploration on the strike extents within the Smith property and continue to build out their presence in the Cobalt Camp, Cobalt Power is working towards being the primary player in the region.

Oftentimes a by-product of silver production, cobalt has seen a significant growth in demand in the last decade as it is a key component of the lithium-ion batteries used in electric vehicles. “To meet the demands of the electric vehicle market, the cobalt supply will have to increase steadily over the next decade and then grow exponentially after that,” said Cobalt Power , Chris Healey, VP of Exploration & Director . “To do that, we need to bring more new cobalt deposits online, and that is what we are planning to do with our properties in the Cobalt Camp.”

The Smith project is a 1,167.7-hectare property made up by five mining concessions that the company acquired over the course of 2016 and 2017. Host to a number of past-producing mines and historical mine shafts, the property has significant historical value associated to the production of silver. Since purchasing the property, Cobalt Power has conducted initial ground work as well as two phases of drilling, the first of which returned results of 0.10 meters of 1.71 percent cobalt and 42.5 g/t silver.

In late 2017, Cobalt Power finalized the acquisition of Canadian Cobalt Projects Inc., and increased their presence in the Cobalt Camp by an additional 7,567 hectares. As part of the acquisition, Cobalt Power also obtained a collection of exploration license applications within historical mining areas of Sweden, which are expected to be approved by mid 2018.

In February 2018, Cobalt Power announced a share purchase agreement to acquire Ontario Cobalt Property Developers Inc., a private company holding 2,944 hectares of prospective mineral claims in the Cobalt Camp, contiguous to the existing Cobalt Power mineral claims, and finalized the acquisition in July 2018. These have been incorporated into the Smith project.

“Our company continues to accumulate valuable assets within the prolific Cobalt Camp,” said Healey . “Our aim is to become the most important player in the region. Acquisition and intelligent exploration will help drive us to that end.”

Outside of Ontario, Cobalt Power has also recently entered the Saskatchewan region with the acquisition of Western Cobalt Corp., a privately-held company that owned nine cobalt-nickel claims near the Athabasca region.

In August 2017, Cobalt Power entered a partnership agreement with Hochschild Mining Holdings Ltd., a senior silver mining producer with four currently operating precious metal mines in Peru and Argentina. As part of the agreement, Hochschild will invest $500,000 in Cobalt Power and will thus have the right to option and joint venture the Cobalt Power property of their choice and add a director to the board. As a partner, Hochschild brings extensive experience in mining steeply dipping, narrow epithermal veins similar to those found in the Cobalt Camp. Being a mid-tier producer, they also add credibility to the company’s assets and management.

The Cobalt Power management team is one with over 100 years of collective experience in mineral exploration within Canada. The management team is also significantly invested in the company, holding 10 percent of company shares.

Company Highlights

  • Flagship cobalt projects totalling 821,403,24 hectares (52,888,60 acres) in politically-stable, mining-friendly jurisdictions of Ontario,Saskatchewan, Canada and Sweden
  • One of the largest land holders in prolific Cobalt Camp in Northern Ontario
  • Cobalt projects cover projected strike extent along a trend of known mineralized veins
  • Smith cobalt project enabled with significant existing infrastructure
  • Canadian cobalt project with prolific past-producing Silver mine on the property
  • Acquisition of nine cobalt-nickel claims near Athabasca basin
  • Strategic partnership with mid-tier silver producer Hochschild Mining
  • Addressing the needs of an ever growing cobalt demand
  • Experienced management team

Smith Cobalt Project

The Smith cobalt project is made up of five high-grade silver and cobalt mining concessions that were acquired over the course of mid 2016 to mid 2017: Smith Cobalt; Proteus; Kirk Lake; Bende and Kingston; and Coleman Township. The land package is 1,169.7 hectares in size and is located in Ontario’s prolific Cobalt Camp. Supported by easy road access and access to water and power, the property hosts several historical mine shafts and identified cobalt veins that Cobalt Power is currently exploring as part of its exploration initiatives.

Cobalt Power

History

The Smith property is located adjacent to the historic Deer Horn mine (Cross Lake O’Brien mine) which is reported to have produced approximately 11 million ounces of silver and 100,000 pounds of cobalt. A number of the silver-cobalt veins from the Deer Horn mine extend into the Smith property.

Within the property itself, the Smith cobalt mines produced 10,027 pounds of cobalt in 1935. Following that, further exploration was conducted on the property, with 1,831 meters of drilling conducted in 1959. Between 1984 and 1986, both the Smith Cobalt and Proteus concessions were drilled, and further ground work and sampling were conducted between 2000 and the Cobalt Power acquisition in 2016.

Exploration initiatives

Since acquiring the Smith cobalt land package, Cobalt Power has conducted initial exploration activities alongside two phases of its drilling program. To begin with, the company conducted an extensive surface sampling initiative, during which ten samples were taken from a muck pile covering an area estimated to contain 5,000 to 10,000 tonnes of crushed rock. Results from these included results of an average 0.5 percent cobalt, 5.55 g/t silver and 0.16 percent copper in the muck pile, and an average 5.81 percent cobalt, 89.1 g/t silver and 0.09 percent copper from rock samples. The company also conducted an airborne geophysical survey, which covered 885 line kilometers, evaluating the surface topography of the property.

Cobalt Power launched its first phase of drilling in the summer of 2017, during which it drilled 9 holes covering a total 1,896 meters. With the goal of verifying the trace of vein swarms mapped in historical mine workings, the drilling intersected various zones of high-grade cobalt and silver, as well as some instances of base metal mineralization. Assay results included 0.10 meters of 1.71 percent cobalt and 42.5 g/t silver as well as 56 meters of 1.85 g/t silver.

Cobalt Power Map

The second phase of drilling was launched in September 2018, and the company expected to drill up to 2,000 meters across 10-15 holes. Results from the phase 2 drill program are expected in the near future.

Moving forward

Moving forward, Cobalt Power will continue its mapping, trenching and geophysics programs across the property. During the winter season, it will also be consolidating and analyzing existing data from the property, using this and the airborne geophysics program to help better determine the drill targets for the phase 3 drilling program to be conducted in mid 2018.

Additionally, the company has also hired a contract to develop an NI 43-101 technical report on the property, to also help identify the drill targets and additional value of the property.

Canadian Cobalt Project

In December 2017, Cobalt Power finalized the acquisition of Canadian Cobalt Project Inc., which included their Canadian cobalt project within the Silver Center region of the Cobalt Camp. The property is easily accessed by road and highways, and has ready access to power and water.

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The 7,567-hectare property is made up of 43 mining claims and one mining lease nearby a number of historic mines, such as the past-producing Keeley and Frontier mines, which were active for 60 years and produced over 19 million ounces of silver and 3 million pounds of copper. The property also hosts the past producing Silver Eagle mine, which produced 8,000 ounces of silver as one of the most prolific producers in the Silver Center.

Project geology

The Canadian cobalt land package is underlain by Huronian Cobalt Group metasediments and host several known cobalt occurrences, which have all been reported in Ontario Mineral Deposit Inventory files. These occurrences include the Labine-McMahon showing, from which samples collected from a quartz-carbonate vein in 1956 returned results of 32.54 percent arsenic, 4.85 percent iron, 21.09 percent cobalt, 1.18 percent nickel, 6.26 percent bismuth and 0.09 percent zinc. This is complemented by the Friday Creek showing, which has a 20-centimeter quartz-calcite vein with 17 g/t silver.

Additional Projects in the Cobalt Power Portfolio

Western Cobalt Corp. Acquisition

In June 2018, Cobalt Power announced the acquisition of Western Cobalt Corp., a private mineral exploration company with nine mineral claims in the Athabasca basin of Saskatchewan. The land package totals 20,130 acres and are contiguous to UEX Corporation’s (TSX:UEX) West Bear cobalt-nickel project as well as claims held by ALS Uranium (TSXV:AL) and Denison Mines Corp.

The properties host critical features for both cobalt-nickel and uranium mineralization, including proximity to the Athabasca sandstone.

Cobalt Power is fully funded for exploration of the properties and anticipates launching an aggressive exploration program.

Little Trout project

In July 2018, Cobalt Power expanded its presence in Ontario with the acquisition of the underexplored Little Trout cobalt project, contiguous to the Canadian Cobalt project. Little Trout is made up of 46 claim units that add up to approximately 776 hectares that host cobalt and copper mineralization.

Located approximately 2.5 kilometers away from the town of Silver Centre, the property is accessible by forestry roads and trails. It is underlain by dipping sedimentary rocks from the Lorrain Formation. A 2004 Ontario Geological Survey sampling program uncovered three significant cobalt and copper lake sediment anomalies. The sampling program saw assay values of up to 123 ppm cobalt and 308 ppm copper.

Blueberry Lake project

In July 2018, Cobalt Power also acquired the Blueberry Lake group of claims located in the township of Cassels. The property consists of 46 claims over 800 hectares located nine kilometers east of the town of Temagami and 35 kilometers south of Cobalt, Ontario.

The property is highly prospective for cobalt, copper and silver mineralization. The 2004 Ontario Geological Survey returned samples with values as high as 68 ppm cobalt.

Historical exploration on the property was minimal and included stream sediment and soil geochemical surveys in 1968. Moving forward, however, Cobalt Power is fully funded to conduct exploration in 2018.

Cliff Lake Properties

The Cliff Lake property were acquired in August 2018, they consist of 73 claim units comprising approximately 1460 hectares of highly prospective geology for cobalt, copper, and silver mineralization.

The claims are contiguous with Cobalt Power’s TriEast claim block. The Cliff Lake properties are located west of the Trans-Canada highway in the Municipality of Temagami in Northeastern Ontario, area.

The property is accessible by forestry roads, boat, and ATV. The Cliff Lake property is underlain by Lorrain formation sediments which are cross cut by a mapped Nipissing dike and inferred high-mag signatures.

Bronwell Lake project

Alongside its Ontario cobalt properties, Cobalt Power also holds a 30 percent interest in the 10,850-hectare Bronwell Lake property in Northeastern Saskatchewan. The property covers a number of gold prospects and showings linked to fault and shear zones of the Bronwell Lake Greenstone Belt.

The property has seen a total 894.5 meters of drilling across five holes, which was conducted in 2007. Drilling results include assay values of up to 13 g/t gold across 0.65 meters and 1.52 g/t gold over 11.6 meters.

In 2012, the company conducted further exploration on the property, collecting 135 rock samples, seven of which returned values of over 10 g/t gold. Assay results from a subsequent phase of outcrop sampling showed values of up to 25.1 g/t gold over 1.03 meters and 4.1 g/t gold over 5.1 meters.

Laurier graphite project

The Laurier graphite property is made up by eight mining claims located in the highly prospective Central Metasedimentary belt, in Ontario’s Laurier township, 40 kilometers away from North Bay. Easily accessed by roads, the property hosts four graphite occurrences, two of which are being prepared for production.

In 2012, the property underwent a field program, which included ground geophysics, prospecting, mapping and sampling. This program was used to verify historical work and confirmed the presence of high-grade graphite, with results of up to 22 percent graphite.

Swedish Properties

Our properties in Sweden are situated in a geological setting very similar to our Cobalt Camp properties in Ontario, Canada. Three large exploration licences in southern Sweden (totaling 7,268.19 ha), valid for three years.

Vena # 3: 1759.75 ha, valid to December 20, 2020, close to the large currently producing Zinkgruvan mine

Gladhammar #1 & #11: 77.7 ha and 1921.88 ha respectively, valid to December 21, 2020

Koppartorp #1: 3508.86 ha: valid to April 23, 2021

All are immediately adjacent to, and along strike from, historic cobalt producers with extensive suite of government geological, geophysical and geochemical data available.

Management

Greig Hutton, P. Eng., MSc (Geology)—President and CEO

Greig Hutton has over 20 years of experience in mining and business development, and has worked as a mining analyst with a focus on energy metals, including cobalt.  He has worked for a number of resource companies including McIntyre Porcupine (Timmins, ON), Inco (Thompson, MB) and Syncrude (Ft. McMurray, AB).  Mr. Hutton has a Masters of Science in Geology from the University of Western Ontario. Mr. Hutton has served as a director of numerous companies including Continuum Resources Ltd., Arco Resources Corp. and Atomic Minerals Ltd.

Brian Murray—Director

Brian Murray holds a Bachelor of Science degree from the University of Toronto and a Masters of Business Administration degree from York University.  He is a Certified Public Accountant with 20 years’ experience in public accounting.  Since 1990, he has been President of the financial consulting firm Murcon Ltd. With over 25 years experience in the resource industry and financial markets, Mr. Murray and has served as a director and/or officer of several publicly listed companies, including his present role as President, Director & CEO of Cava Resources Inc. and SBD Capital Corp.

Chris Hopkins—CFO and Director

Chris Hopkins is a commerce graduate of the University of Toronto and a Chartered Accountant.  Mr. Hopkins is also the holder of a Masters of Business Administration degree following his graduation from the Schulich School of Business at York University.  Mr. Hopkins has more than 25 years’ experience in financial management focused in the resource industry.  Past tenures include senior roles with public mining companies, including U.S. Silver, Rio Algom, BHP Billiton, Suncor as well as several Canadian and international junior mining companies.

Braden Jensen, CA—CFO

Braden Jensen is a Chartered Accountant, with a Bachelor of Commerce degree from the University of Victoria. He began his career and traditional training with KPMG LLP.  He was in the public practice sector for 6 years, concentrating in commodities-based accounting and tax. He then transitioned to industry, working for the past 3 years at Wellgreen Platinum Ltd. in mineral exploration, construction, and operations reporting.

Chris Healey, PGeo—VP Exploration, Director

A professional geologist licensed in Saskatchewan and British Columbia, Chris Healey earned a Bachelor of Science degree in geology from the University of Wales in 1968. He brings over 48 years of experience in the natural resources industry, covering all aspects, from early stage exploration through development to production. His expertise covers a wide variety of mining methods, including narrow vein precious and base metals. Beginning his career with International Nickel Company (now Vale Limited), he went on to work with Cameco Corporation – the world’s largest uranium producer. Most recently, he was President & CEO of Titan Uranium Inc., a Tier One TSX.V listed company, where his responsibilities included the permitting of a major mine and mineral recovery facility. In addition to Cobalt Power Group Inc., he currently sits on the Board of Directors at Rainmaker Resources Ltd. and Carmax Mining Corp.

Glenda Kelly—VP Corporate Communications, Corporate Secretary

Glenda Kelly is an investor communications professional and experienced in business development.  As a a co-founder of Rainier Resources Ltd., she served as Vice-President and Director. She has als worked extensively as a business consultant and advisor in areas of financial reporting, private placements, news releases, and investor communication. She is a past member of the Canadian Investor Relations Institute; and will be managing the communication, finance department and social media marketing. Her role as corporate secretary is backed by many years of board experience, and company corporate and regulatory compliance.

Jeff Poloni—Director, Consultant 

Jeff Poloni has been involved in mineral exploration for 30 plus years and has managed numerous exploration and development programs in North, South, and Central America, including the exploration of high grade narrow vein gold deposits in Brasil and porphyry copper deposits in north-western British Columbia. Mr. Poloni has extensive experience in the management of both public and private companies.  He was founder and president of Avant Garde Signs and Pacific Water Cutting, from 1993 to 2012, with clients such as Fairmont Hotels, Delta Hotels, Pinnacle Hotels, Vancouver Canucks, and Ledcor. Currently, he sits as President of JCMP Management and Auranita Resources.

Chris Hopkins—Director

Chris Hopkins is a commerce graduate of the University of Toronto and a Chartered Accountant.  Mr. Hopkins is also the holder of a Masters of Business Administration degree following his graduation from the Schulich School of Business at York University.  Mr. Hopkins has more than 25 years’ experience in financial management focused in the resource industry.  Past tenures include senior roles with public mining companies, including U.S. Silver, Rio Algom, BHP Billiton, Suncor as well as several Canadian and international junior mining companies.

Isac Burstein, BSc, MSc, MBA—Director

Isac Burstein joins the Company from well-established senior mining producer Hochschild Mining, where he has been a geologist since 1995. Prior to his current position as VP Exploration and Business Development, he served as Manager for Project Evaluation, Exploration Manager for Mexico, and Exploration Geologist. He holds a BSc in Geological Engineering from the Universidad Nacional de Ingenieria in Peru, an MSc in Geology from the University of Missouri, and an MBA from Krannert School of Management at Purdue University in Indiana, USA.


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