TORONTO, Jan. 8, 2019 /CNW/ - First Cobalt Corp.
(TSX-V: FCC; ASX: FCC; OTCQX: FTSSF) (the "Company") is pleased to
announce it has engaged Brown and Caldwell at the Iron Creek Project to provide
guidance on permitting and to develop an environmental baseline
study strategy.
Trent Mell, President & Chief
Executive Officer, commented:
"First Cobalt's strategy in 2019 is to advance and de-risk
our two key assets: the Iron Creek Project in Idaho, USA and the First Cobalt Refinery in
Ontario, Canada. Environmental and
permitting work are critical next steps to progressing Iron Creek
towards development. We are pleased to have the experience of Brown
and Caldwell as we drive the
project forward. On the heels of the maiden resource estimate
announced in the fall, this is one of a series of technical
programs initiated to help us determine the optimal mining and
mineral processing design at Iron Creek. Baseline environmental
data is critical to advancing the timeline toward production as we
work towards developing an environmentally responsible source of
cobalt in North America."
Mr. Mell went on to say, "The First Cobalt Refinery offers
the opportunity for early cash that could finance future work at
Iron Creek. Metallurgical tests of cobalt hydroxide and other
sources of third-party feed are ongoing and early indications are
encouraging. In parallel with these tests, we are actively
exploring sources of non-equity capital to finance the
recommissioning of the refinery, which has been on care and
maintenance since 2015.
"Cobalt is essential for the growing electric vehicle market
and cobalt assets outside China
and the DRC remain exceedingly rare. There is no primary cobalt
mining or refining in North
America today and the potential for First Cobalt to produce
ethical cobalt in a safe jurisdiction allows us to stand
apart."
First Cobalt has engaged Brown and Caldwell as its primary environmental and
permitting consultant for the Iron Creek Project in Idaho, USA due to the firm's strong reputation
as a leading environmental consulting, engineering, design, and
construction firm with more than 55 offices across the USA and Canada and over 70 years of experience.
Services will be provided from its Boise,
Idaho office, which has extensive experience in project
permitting, water management, environmental monitoring, and
reclamation. Brown and Caldwell
will be providing permitting guidance and overseeing the collection
of environmental baseline data at the Iron Creek Project. Water
quality data collection commenced in 2017 and is ongoing.
The Iron Creek Project has an Inferred Resource estimate of 26.9
million tonnes grading 0.11% cobalt equivalent (0.08% Co and 0.30%
Cu containing 46.2 million pounds of cobalt and 176.2 million
pounds of copper) under a base case scenario pit constrained and
deeper mineral resource (see September 25,
2018 press release). An alternative underground-only
scenario results in 4.4 million tonnes grading 0.23% Co and 0.68%
Cu (0.30% CoEq) using a cutoff underground grade of 0.18% CoEq and
containing 22.3 million pounds of cobalt and 66.7 million pounds of
copper. The Inferred Resource is based on drilling over a strike
length of approximately 500 metres and a dip extent of over 150
metres. Preliminary metallurgical testing concludes that simple
flotation methods are applicable, yielding recoveries of 96% for
cobalt and 95% for copper in rougher floatation.
Drilling continued through to the end of 2018 to extend the
strike length of the mineralized zone and test down dip extensions
of known cobalt-copper zones. An updated Mineral Resource estimate
is anticipated towards the end of the first quarter of 2019.
The environmental baseline data, the updated Mineral Resource
estimate and other technical studies will be incorporated into a
Preliminary Economic Assessment planned for the latter half of
2019.
About First Cobalt
First Cobalt is a North American pure-play cobalt company whose
flagship asset is the Iron Creek Cobalt Project in Idaho, USA, which has Inferred mineral
resources of 26.9 million tonnes grading 0.11% cobalt equivalent.
The Company also owns the only permitted cobalt refinery in
North America and 50
past-producing mines in the Canadian Cobalt Camp.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Estimates of
Resources
Readers are cautioned that mineral resources are not economic
mineral reserves and that the economic viability of resources that
are not mineral reserves has not been demonstrated. The estimate of
mineral resources may be materially affected by geology,
environmental, permitting, legal, title, socio-political, marketing
or other relevant issues. The mineral resource estimate is
classified in accordance with the Canadian Institute of Mining,
Metallurgy and Petroleum's "2014 CIM Definition Standards on
Mineral Resources and Mineral Reserves" incorporated by reference
into NI 43-101. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of feasibility or pre-feasibility
studies or economic studies except for Preliminary Economic
Assessment as defined under NI 43-101. Readers are cautioned not to
assume that further work on the stated resources will lead to
mineral reserves that can be mined economically. An Inferred
Mineral Resource as defined by the CIM Standing Committee is "that
part of a Mineral Resource for which quantity and grade or quality
are estimated on the basis of limited geological evidence and
sampling. Geological evidence is sufficient to imply but not verify
geological and grade or quality continuity. An Inferred Mineral
Resource has a lower level of confidence than that applying to an
Indicated Mineral Resource and must not be converted to a Mineral
Reserve. It is reasonably expected that the majority of Inferred
Mineral Resources could be upgraded to Indicated Mineral Resources
with continued exploration."
Cautionary Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects', "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "occur" or "be
achieved". Forward-looking statements involve risks, uncertainties
and other factors that could cause actual results, performance and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements are set
forth in the management discussion and analysis and other
disclosures of risk factors for First Cobalt, filed on SEDAR at
www.sedar.com. Although First Cobalt believes that the information
and assumptions used in preparing the forward-looking statements
are reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed times frames or at all. Except where required by
applicable law, First Cobalt disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
SOURCE First Cobalt Corp.