Northern Cobalt Ltd’s [ASX:N27] share price is trading 11.11% higher, following news that that it has acquired 100% of a Vanadium project based in Southern Alaska, compounding an already good week in share price performance.
Northern Cobalt has 48 mineral claims staked in the vanadium project. Which is likely to have a very low-cost acquisition and large scale potential.
That type of potential is exciting for Northern cobalt. The company already deals with the acquisition, exploration and development of battery and strategic metals such as cobalt, lithium and REE. Naturally, its vanadium project carries over exposure for the metal in vanadium flow batteries.
Which is a key player for future global economic growth.
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Northern Cobalt’s share price reaps large scale potential
Key infrastructure requirements are already in place for the vanadium project at the Snettisham Hydroelectric power plant, housing great potential for the vanadium project to offer large-scale operations.
But there are conditions for processing and exporting vanadium.
Luckily, Northern Cobalt’s vanadium project is ready to take advantage of the facilities already in place. With its close proximity to the Snettisham Hydroelectric power plant, it offers cheap electricity in order to perform magnetic separation and operation of grinding facilities.
Michael Schwarz, managing director of Northern Cobalt, commented about the vanadium project prospect:
‘Northern cobalt believes that the fundamentals of the battery metals markets remain strong. Not only is the company placing itself as a potential supplier of cobalt to the electric vehicle markets, it has now acquired a significant vanadium project that gives it exposure to demand for the metal in vanadium flow batteries and the increasing demand for use in high strength steel in the building industry.’
Another upside to the project is its location. Its closeness to the ocean, absence of frozen soil and hilly landscape, means that the project can remain operational all year round. This benefit is immediate, as for future advantages, there’s also the possibility of direct material movements from the plant to cape and Panamax shipping options — through the deep-water channel next to the project, as reported in Northern cobalt’s announcement. Adding another processing requirement — access to material handling and transport facilities.
Northern Cobalt’s 2019 forecast
Magnetic surveys and Northern Cobalt’s analysis of geology, suggests the project has potential for vanadium bearing magnetite mineralisation, which is similar to present production of economic deposits.
Leading into 2019, it’s difficult to say how Northern Cobalt’s share value will maintain. But with the recent announcement of the vanadium project and other welcoming news of cobalt and copper systems, Norther Cobalt could be in a good position.
The emerging battery market is growing at a fast pace, and with demand growing, Northern Cobalt could be best suited to take advantage. But as always investors will have to wait and see whether it does.
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