COBALT POWER GROUP ANNOUNCES ACQUISITION OF LITTLE TROUT PROJECT IN COBALT ONTARIO MINING CAMP
TORONTO, July 5, 2018 /CNW/ – Cobalt Power Group Inc. (“Cobalt Power” or the “Company”) (TSXV CPO, OTC Pink CBBWF) is pleased to announce the acquisition of the Little Trout group of claims in the South Lorraine Township of Ontario, Canada. The Little Trout property consists of 46 claim units comprising approximately 776 hectares of highly prospective geology for cobalt and copper mineralization. The claims are contiguous with Cobalt Power’s Canadian Cobalt project.
- The Little Trout property was originally staked to cover the source area of a cluster of 3 significant cobalt and copper lake sediment anomalies derived from a 2004 Ontario Geological Survey sampling program.
- The geochemical signature of the anomalies differs from much of the Cobalt Ontario camp in that the anomalous cobalt is coupled with copper, in contrast with the typical Co-Ag-As signature of the historical mining camp. This is suggestive of sediment-hosted copper-cobalt mineralization.
- The Company is fully funded for the 2018 exploration season and plans are underway for an aggressive exploration program on its new Little Trout property.
The Little Trout property is located approximately 2.5 km southwest of the historic town of Silver Centre and approximately 27 km south of the town of Cobalt, Ontario. The property is accessible by forestry roads followed by 2 km of ATV trails.
The Little Trout property lies within the Huronian Basin and is almost entirely underlain by gently dipping sedimentary rocks belonging to the Lorrain Formation, consisting of quartzites, feldspathic quartzites, and arkose. A Nipissinggabbroic intrusion crosses the NW corner of the property.
Lake sediment samples taken by the Ontario Geological Survey in 2004 returned assay values as high as 123 ppm Co and 308 ppm Cu. The metal suite of the lake anomalies is atypical of the CoAg-Assignature of Cobalt and Silver Centre mineralization, which is commonly hosted by Nipissing diabase dikes. The Co-Cu signature suggests the presence of another style of mineralization including possibly sediment-hosted Cu-Co.
Very little historical exploration work has been completed on the Little Trout property as the geological setting is unconventional for silver-cobalt mineralization that was historically exploited in the Cobalt camp. A silver-copper showing (Friday Creek) hosted by Nipissing diabase in contact with Lorrain quartzites occurs approximately 3 km to the west of Little Trout.
The purchase will be accomplished by Cobalt Power acquiring all of the issued and outstanding shares in Little Trout Cobalt Development Corp. (“Little Trout”) In exchange for the issuance, at closing, to the shareholders of Little Trout the sum of $192,375 and the benefit of a 2.5% net smelter royalty, of which 1.5% may be purchased by Cobalt Power at any time on or before the fifth anniversary of the closing date in consideration of a $1,500,000 cash payment. This is an arm’s length transaction and the transaction will not create any new insiders of the corporation.
Chris M. Healey, P. Geo, Vice President Exploration and Director of Cobalt Power Group is the qualified person responsible for the technical content of this release, and consents to its dissemination.
About Cobalt Power Group Inc.
Cobalt Power Group Inc. is a publicly traded Canadian exploration company listed on the TSXVenture Exchange and U.S. Pink Sheets (TSXV CPO, OTC Pink CBBWF) focused on cobalt exploration and development. The Company has made a series of strategic property acquisitions over the past two years seeking cobalt mineralization near Cobalt, Ontario, a region with a long history of silver and associated cobalt production, and now in the Athabasca basin of Saskatchewan. Property holdings total approximately 19,826 hectares (48,991 acres) in contiguous and strategic claim blocks. There are several historic mining operations on the properties that are potentially accessible, including the Smith Cobalt shaft and its underground workings.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. We seek safe harbor.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed
transaction and has neither approved nor disapproved the contents of this press release.
Forward Looking Information
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release. WARNING: The Company relies on litigation protection for “forward looking” statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company. This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available SOURCE Cobalt Power Group Inc
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