One of northeastern Ontario largest landholders of prospective cobalt properties has been transfixed by the discovery of diamonds.
Vancouver's Cruz Cobalt has emerged from a period of inactivity to announce that the resurgence in diamond exploration near its five properties near Cobalt has swayed them to start searching for these gemstones.
In a recent release, the company said it's onboard with the "renewed chase" to find the source of the historic Nipissing Yellow Diamond.
The stone was rumoured to be 800 carats at the time of its discovery sometime between 1903 and 1905 in the area of the silver mines near the town of Cobalt.
"There has been a large amount of work done right around Cruz's properties this year where a recent diamond discovery has been made in the vicinity of our property," said Cruz president Jim Nelson in a news release.
"To date, we have only evaluated our significant portfolio of Ontario projects for cobalt, however, going forward we intend to evaluate these projects for diamond and silver potential."
No company has located the source of the Nipissing diamond.
The company with the inside track appears to be RJK Explorations, which announced in April of the discovery of 18 diamonds on one its properties south of the town of Cobalt.
The Kirkland Lake-based explorer has since been finding microdiamonds and kimberlite - the host rock for diamonds.
Cruz has issued little information on its cobalt exploration efforts since January 2019 when disappointing results were posted from a drilling program at its Hector cobalt property.
But the company has been further emboldened by the 15 per cent jump in cobalt prices between July and August by recently acquiring a prospective property in the Idaho Cobalt Belt Project.
Cruz hasn't revealed any details of its exploration strategy in the northeast except to say the "time is now" to recommence activity, predicting the remainder of 2020 will be a busy time for the company.
Cobalt is used in lithium-ion batteries.
Cruz’s northeastern Ontario projects, prospective for cobalt, diamonds and silver, include the 2,323-acre Coleman prospect, the 1,235-acre Johnson prospect, the 6,227-acre Hector prospect, the 2,767-acre Bucke prospect and the 1,532-acre Lorraine prospect.