International Cobalt Corp.

Developing World-class Cobalt Properties in Idaho and Canada

This profile is part of a paid investor education campaign.*

Overview

International Cobalt Corp. (CSE:CO, FWB:42L, OTCMKTS:COBAF) is a Canadian exploration company that operates out of Idaho, US and Eastern Canada. The company is focused on exploring and developing its portfolio of properties towards producing cobalt for the growing battery and electric vehicle (EV) markets.

As countries around the world, including China, are focusing on reducing their environmental footprints, the need for minerals like cobalt is on the rise. Cobalt is a main component in cathodes in lithium-ion batteries for EVs, and this has sparked the demand for the metal. The demand for cobalt in batteries is expected to grow at 14.5 percent per year to 2027, according to a Roskill report.

The growth rate of cobalt demand is a concern amongst manufacturers and miners alike as most of the world’s supply of cobalt is produced in the politically unstable Democratic Republic of Congo (DRC). This has led companies such as Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL) to search for stable, conflict-free regions from which to source their cobalt. Currently, there are no active cobalt producers in North America, but there are companies, such as International Cobalt, who are developing cobalt projects in Canada and the US.

International Cobalt owns five cobalt exploration properties in Canada and the US. Their flagship project is Blackbird Creek in the Idaho Mineral Belt in Lehmi County, Idaho. The property is adjacent to eCobalt Solution’s (TSX:ECS) Idaho cobalt project and the historic Blackbird mining camp. The company is focused on exploring the property’s Ludwig showing, which has a historic sample which of 7 meters grading 0.71 percent cobalt.

The company’s Ramsay project is located in New Brunswick, Canada and has seen historical work conducted by several operators. The most notable sample returned from the property was an intersect of 0.8 meters grading 0.956 percent cobalt. The Mount Thom project is in Nova Scotia, Canada  Currently, International cobalt is compiling historical drill results to generate drill targets for future work programs.

International Cobalt’s fourth property is Formation North, which is five kilometers away from eCobalt’s Ram deposit in the Idaho Mineral Belt in Lehmi County, Idaho. The property has two underexplored mineralized zones that are approximately 1.5 kilometers apart called the Bonanza and Tinker’s Pride zones. The Bonanza zone has returned historical intercepts of 17.8 meters of 0.24 percent cobalt and 0.15 percent copper and 18.2 meters of 0.18 percent cobalt and 0.34 percent copper in a 1955 drill program. The Tinker’s Pride zone has also returned an intercept of 6.9 meters grading 0.41 percent cobalt and 2.01 percent copper in the 1955 drill program.

Finally, International Cobalt’s fifth property is the Foster Marshall project in Cobalt, Ontario. The property has seen little exploration, but all joints, cross fractures and shear planes that have been tested are mineralized and have produced numerous assays, most notably 4.5 percent cobalt and 87 ounces per ton silver.

Company Highlights

  • Operating in politically stable, mining friendly jurisdictions in Canada and the US.
  • Exploring world-class cobalt projects with the aim of providing a solution to the supply and demand issues generated by the EV and renewable resource sectors.
  • Idaho cobalt projects are within proximity of eCobalt’s Idaho cobalt project.
  • Blackbird Creek project’s Ludwig showing has a historic sample which intersected 7 meters of 0.71 percent cobalt.
  • Formation North project’s Bonanza zone has returned historical intercepts of 17.8 meters of 0.24 percent cobalt and 0.15 percent copper and 18.2 meters of 0.18 percent cobalt and 0.34 percent copper.
  • Formation North project’s Tinker’s Pride zone returned an intercept of 6.9 meters grading 0.41 percent cobalt and 2.01 percent copper.
  • Exploration potential at Ramsey, Mount Thom and Foster Marshall properties.

Blackbird Creek

In February 2017, International Cobalt acquired a 100 percent interest in the 696-hectare Blackbird Creek project in the Idaho Mineral Belt in Lehmi County, Idaho, US. The property is adjacent to and 15 miles southeast of eCobalt’s Idaho cobalt project and the historic Blackbird mining camp. The property is also has access to major market end users such as battery maker LG Chem Holland battery plant in Holland, Michigan and the Tesla (NASDAQ:TSLA) gigafactory in Nevada.

Ludwig showing

The project has several historic cobalt showings, including the Ludwig Main showing where an exploration adit cut 7 meters of 0.71 percent cobalt. In 1979, Noranda completed a eight-hole drill program which returned an intersect of 7.9 meters grading 0.4 percent cobalt.

In 2016, International Cobalt completed reconnaissance sampling at the Ludwig showing and collected a grab sample that returned a grade of 0.48 percent cobalt, confirming the presence of cobalt on the property.

Ramsay Cobalt

In March 2018, International Cobalt signed a LOI to acquire the 8,007-hectare Ramsay cobalt project from Slam Exploration (TSX:SXL). The project is located in the Bathurst Mining camp in New Brunswick, which boasts approximately 46 volcanogenic massive sulfide (VMS) mineral deposits with defined tonnage and another 100 mineral occurrences. The project is approximately 25 kilometers west of Trevali Mining Corp.’s (TSX:TV) Caribou zinc-lead-silver-copper-gold mine. Additionally, the project is also accessible by highway and has access to power.

Historical exploration

Previous operators were able to identified a 650 meter strike length that contained cobalt and copper mineralizations through trenching, geochemical surveys, ground-based geophysics and a limited 1,321-meter drilling program. The mineralized zone remains open along strike and at depth and includes other early-stage cobalt targets.

In 2004, a previous operator drilled nine holes on the property. Notable results included an intersect of 0.8 meters grading 0.956 percent cobalt. However, higher-grade zones typically occur within wider intervals that range up to 24.8 meters and grade up to 0.180 percent cobalt and 0.182 percent copper.

Mount Thom

In April 2018, International Cobalt’s subsidiary, American Cobalt Corp., entered into an option agreement with Supreme Metals Corp. (CSE:ABJ) to acquire up to an 80 percent interest in the 1,560-acre Mount Thom project. The property is located approximately 22 kilometers east of Truro, Nova Scotia and has access to  both power and a nearby highway.

Historical exploration

In the 1970s, Imperial Oil (TSX:IMO) discovered an IOCG-style deposit while searching for copper. Later on, another operator recognized mineralizations associated with cobalt in outcrop from trenches and have returned historical assays of up to 0.57 percent cobalt. A historical resources was developed for the property that includes 300,000 tonnes grading 1.5 percent copper.

Ongoing Exploration

Moving forward, International Cobalt will be reassaying over 3,500-meters of existing drill samples for cobalt and will be testing targets that require additional exploration in a future work program.

Formation North

In December 2017, International Cobalt acquired the 470-hectare Formation North project. The property is located within five kilometers of eCobalt’s Ram deposit. The two mineralized zones on the project have seen limited exploration and are approximately 1.5 kilometers apart. However, historical work on the property included the discovery of several soil anomalies that returned values greater than 150 ppm cobalt after testing.

Bonanza zone

Historical drilling completed in 1955 at the Bonanza zone returned intercepts of 17.8 meters of 0.24 percent cobalt and 0.15 percent copper and 18.2 meters of 0.18 percent cobalt and 0.34 percent copper. However, there were no reports of gold found in the assay tests conducted. In 1982, the US Bureau of Mines took a sample from the  Bonanza zone assayed 4.4 g/t gold.

Tinker’s Pride zone

In 1995, the Tinker’s Pride zone was also drilled and returned an intercept of 6.9 meters grading 0.41 percent cobalt and 2.01 percent copper and a separate 1.5-meter-wide zone of 0.76 percent cobalt and 5.15 percent copper.

Foster Marshall

In April 2018, International Cobalt’s subsidiary American Cobalt Corp. entered into an option agreement with Supreme Metals Corp. to acquire up to an 80 percent interest in the 633-hectare Foster Marshall project. The property is located in the Larder Lake mining division near the historical mining town of Cobalt, Ontario. The property is approximately 25 kilometers north of Agnico Eagle Mines Ltd.’s past producing Langis mine deposit.

Two main veins have been identified on the property that have a combined length of over 530-feet and additional government report indicate that there is another vein on the property that is over 900-feet long. All joints, cross fractures and shear planes are mineralized and have produced numerous assays, most notably including 4.5 percent cobalt and 87 oz/T silver.

Champion Projects

In August 2018, International Cobalt entered into a right of first refusal (ROFR) agreement with Idaho Champion Gold Mines Ltd. to acquire four mining projects with a combined land package of 6,871 hectares in the Idaho Cobalt Belt. The acquisition will nearly triple International Cobalt’s presence and land position in the area.

“We are delighted to be investors in ICGM and wish them all the best in their gold-focused endeavors in Idaho,” said International Cobalt President and CEO Tim Johnson. “The ROFR gives us a huge opportunity to significantly add to our existing premier land position and become the preeminent player in the Idaho Cobalt Belt, which in our opinion is the most prospective region for cobalt discoveries in North America.”

Management

Tim Johnson — CEO & Director

Tim Johnson has over 25 years experience in the mineral exploration industry ranging from grassroots prospecting to consulting company operation and public company management. As a founder and manager of Arcmin Enterprises, he helped a northern British Columbia First Nation community build a labour service company which is currently employing over 180 people, providing entry level and skilled workers to exploration and development projects in BC’s golden triangle. Johnson is also a director and CEO of Granite Creek Gold a TSX.V listed company exploring for gold in West Africa and CFO of Group 10 Metals.

Eugene Beukman — Director

Eugene Beukman is the Corporate Counsel of the Pender Group of Companies, a position he has held since January 1994. He graduated from the Rand University of Johannesburg, South Africa with a Bachelor of Law degree and a Bachelor of Law Honors Postgraduate degree in 1987. Beukman was previously employed as a legal advisor to the predecessor of BHP Billiton. He has over twenty years experience in the acquisition of assets and joint ventures.

Paul J. DesLauriers — Director

Paul J. DesLauriers is a Principal at Loewen Ondaatje McCutcheon Limited, a Canadian investment dealer of which he was a co-founded in 1970. He has been active in the Canadian investment industry since 1962 in research, institutional coverage and corporate finance in Toronto and Montreal. In 1986, DesLauriers was a Founder and a Partner of the Lakewood Capital Group which had a production profile of over 7,500 BOE/PD when it was sold. In 1984, he was a Founder and a Funder of the CMP Group, which was the driver of changes in legislation which resulted in the emergence of the flow-through financing mechanism for the resource sector in Canada.

Maciej (Magic) Lis — Director

Maciej Lis currently holds interests in various sales, distribution and logistics companies which he helped build over the preceding decade. Lis has also previously acted in a number of business development and investor communication roles for both public and private small-cap and mid-cap natural resource sector companies operating globally. Lis holds an Honors Degree in Economics from the University of Toronto, and is fluent in 3 languages. Lis is an active patron of the arts and theatre, to which he contributes not only financial support but also resources, skills and time.


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Legal Dispute Relating to the Formation North Claims:

The Company notes that some of the tenure of the Formation North claims is subject to a legal dispute as outlined below.

Arizona Lithium Company Ltd. (“Arizona Lithium”) staked the Formation North Claims on 26th to 30th September 2016, consisting of 58 lode mining claims located in Lemhi County, Idaho (referred to as the “BOCO Claims”).  At the time Arizona Lithium staked the BOCO Claims, it encountered mining claim posts lying on the ground within a portion of the area encompassing the BOCO Claims.  These posts, and the attached identification tags, allegedly evidenced the location of certain mining claims previously located on September 7, 2016 (referred to as the “BATT Claims”).  Due to apparent inadequacies in the staking of the BATT Claims (including the failure to properly place the posts in the ground or at the corners of the claims), Arizona Lithium asserts that the BATT Claims are void and is pursuing legal action against the owner of the BATT Claims (Battery Minerals Resources, Inc.) in the United States District Court for the State of Idaho to have the BATT Claims declared invalid.  Arizona Lithium has paid all BLM and registration fees on its BOCO Claims and believes its claims have been validly staked and will proceed with legal action to invalidate the competing claims.