Eon NRG (ASX:E2E) has acquired 18 mineral claims prospective for cobalt in Nevada’s Basin and Range Province, covering around 360 acres.
The claims are located about 2 miles from a historical cobalt mine, and interpreted to be on a parallel offset structure.
Eon NRG’s shares closed 67% higher on Friday, at $0.015.
A hotbed for mineral exploration
Historical silver, lead, and gold mines surround the newly staked claims and several older prospect workings sit within the area of the claims.
The mineral rich area is composed of a geologically complex suite of igneous, metamorphic, and sedimentary rocks.
In addition to the complex geology in the area an active hydrothermal system beneath the claims may enhance mineralisation along active outcropping faults.
Diversified energy strategy
The price for cobalt recently hit its highest level since 2008, prompted by rising demand from electric cars.
The rise comes as carmakers from Tesla (NASDAQ:TSLA) to Volkswagen (ETR:VOW) are looking to secure long-term supplies of cobalt for use in their rechargeable batteries.
Eon’s battery minerals division has commenced cobalt exploration as part of its diversified energy strategy.
Mapping and sampling commenced
Eon has already commenced exploration over the claims including mapping and sampling selected sites.
Rock types seen and collected while in the field were varied and showed a mix of mafic intrusive units (gabbro), mafic volcanic units (greenstones), extrusive rhyolites, metamorphic quartzite and marble.