Northern Cobalt Ltd. said Dec. 19 that it staked 48 claims covering the Snettisham vanadium project in southwestern Alaska and plans to conduct a detailed magnetic survey in early 2019 to generate targets for exploration drilling.
Historical sampling within the project area returned values of 0.56% vanadium pentoxide, which shows potential for high-grade vanadium, the ASX-listed explorer said. The area has been explored for magnetite-style iron ore since the early 1950s. The last exploration was conducted in 2013 by Arrowstar Resources Ltd., which exited the mining sector in June.
The project is about 50 kilometers south of Juneau, and the terrain allows for year-round exploration work, according to the release.
Northern Cobalt will pay 500,000 shares to a Fireant Resources Pty. Ltd. nominee as payment for introducing the tenure to the company.
The company will issue 1 million shares to Fireant upon reaching certain milestones, including spending A$1.5 million on the project, selling the project for not less than A$3 million within three years or outlining a maiden resource estimate.