Go Cobalt Mining (CSE: GOCO) has signed an option agreement with Contigo Resources to earn 100% interest in the Barachois vanadium property located in Quebec's Gaspe Peninsula.
Barachois is a sedimentary hosted vanadium-selenium-silver-lead-zinc prospect that covers 1,801 hectares where carboniferous aged sediments have been shown to host sedimentary vanadium-zinc-lead mineralization. Historical work in the area identified three showings with samples yielding vanadium pentoxide grades in excess of 2%, lead over 8% and zinc over 5%, the miner said.
"This is a Canadian project with good grade and easy access. The area of mineralization presents the company with ways to add value at a relatively low cost," said Go Cobalt's President, Scott Sheldon, in a press release. "Our company is very excited to get into the vanadium space. Industrial demand combined with a future market for rechargeable electrochemical cells like the vanadium redox flow battery looks very encouraging," he added.
Following the signing of the option agreement, Go Cobalt's technical team will start a review and compilation of the project data to develop an exploration program aimed at expanding the historic zones of mineralization.
Vanadium is used to strengthen steel, and it has been the best performing metal in the battery metals sector in 2018. Many vanadium stocks have spiked in price, returning doubles and triples in a short time.
In 2017, global consumption was of about 95,000 tonnes, but steel demand and changes to Chinese building codes are expected to increase the need for the corrosion-resistant metal. Advances in battery technology and more competitive production costs could also boost demand.