US Cobalt Inc. (USCO.V) coverage was initiated on September 1, and a recent note was published on December 26. As an update, the company's core project is Iron Creek located in Lemhi County, Idaho, USA. USCO.V is working on confirming historic tonnage and grade to achieve NI 43-101.
Our last note indicated that 40 surface drill holes (approx. 35,000 feet) were expected from the last drill campaign (June to mid-December). Results are in 4 batches (holes): B1 (13) reported on Oct. 4th. B2 (7) and B3 (3) were to come before January. B4 (7) and B5 (10) late January.
B2 (7) results were released on Monday. This means, that B3 (3) and B4 (7) and B5 (10) are not on schedule but are expected to be delivered shortly.
Jan. 15 - Drilling Intersects High Grade Cobalt and Discovers New Thicker Mineralized Zones - All seven of these core holes encountered sulfide mineralization with significant cobalt values. Several of the holes have discovered much thicker cobalt-bearing zones not previously identified.
B2 (7) results were good but we could not help but notice the classic pre-news movement and adage: "buy on the rumor and sell on the news".
Will the price movement hold? A forecast based on the last three months for the week suggested that it will not. $0.69 cents is forecasted for Friday (yesterday's low was $0.70). Interestingly, the average price in the last three months hovered around $0.60 cents.
Yesterday's decline in USCO.V's price came despite the company issuing the same news release on two consecutive days.
Also yesterday, we could not help but notice the number of Cobalt related news releases. Out of a cohort of 11 stocks, 5 (45%) had news releases including USCO.V (See N below). Also, 7 (64%) had a higher volume than in the last 90 days. Was the re-release a defensive move? Who knows.
Again, USCO.V was selected for the potential quality and location of the deposit (close to eCobalt Solutions), as well as, the pace of their efforts. To date, the drilling result are very promising and we're hoping for a sustained valuation as more drill results come in. For now, it's a tough crowd.
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