/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, March 4, 2019 /CNW/ - First Cobalt Corp. (TSX-V:
FCC; ASX: FCC; OTCQX: FTSSF) (the "Company") is pleased to report
that a 611-metre drill hole has extended mineralization by an
additional 150 metres downdip in the central portion of the Iron
Creek Cobalt Project in Idaho,
USA.
Highlights
- Longest hole drilled to date at Iron Creek at 611m, extends No Name Zone mineralization by an
additional 150m
-
- Broad intercepts such as 12.0m
of 0.20% Co, including 3.9m of
0.35% Co (true width), extend the dip extent of the No Name
Zone
- Dip extent of up to 400m from
surface, extending mineralization well below the high grade cobalt
zone that formed the basis of a historic resource estimate by
Noranda
- Updated resource estimate scheduled for late March
Trent Mell, President & Chief
Executive Officer, commented:
"We have doubled the depth extent of mineralization across
the entire deposit and it still remains open. With good continuity
of grade and thickness, we can now extend the deposit more quickly
and cost-effectively with wider spaced step out holes. The future
potential remains high beyond the next resource update as each
step-out has shown mineralization remains open at depth and along
strike. An updated resource estimate will be published in about a
month, incorporating more than 13,000 metres of drilling.
"Confidence is returning to the cobalt market as EV sales
continue to set new records in the face of lower mine production
forecasts in 2019. Our Iron Creek Project and the near term cash
flow potential of the First Cobalt Refinery provide direct exposure
for investors seeking leverage to the electric vehicle
revolution."
The No Name Zone has now been traced to 300m downdip in the central area of the deposit
and 400m in the west, as
mineralization follows steepening terrain. Hole ICS18-28 (Figure 1)
was drilled into the centre portion of Iron Creek, below the
current resource area, to test for downdip mineralization (Figure
2). The No Name Zone mineralization has now been intercepted
150m below the deepest previous
intercept, reported in ICS18-19 earlier this year, and remains open
at depth.
Drilling in the central area of the deposit has infilled much of
the central portion of the 2018 resource estimate, which had depth
extensions confined to the eastern and western portions of the
deposit. This infill drilling and the resulting assays are expected
to provide a meaningful increase in mineralization for the upcoming
resource estimate expected in late March.
Assay results for ISC18-28 show the No Name Zone occurs as a
broad mineralized zone containing a higher grade cobalt core (Table
1). This relationship is consistent with previous drilling higher
up, including ICS18-19, ICS18-26, and IC17-19 (reported
January 22, 2019 and September 26, 2018). Higher cobalt grade cores
within broader mineralization are also prevalent in the Waite Zone
in this area.
Drill hole, IC17-39 drilled northward from the hangingwall
intersected cobalt mineralization at a comparable depth over
150m away along strike, suggesting
continuity to the downdip extension (September 26, 2018 release) intersected in
ICS18-28.
A high grade copper intercept, 1.22% Cu over 1.0m, was intercepted approximately
150m into the hangingwall. Previous
drilling has intercepted several copper intervals in the
hangingwall that were not the main target of drilling, so at this
time they have not been modelled to determine continuity.
Cobalt was also intersected further downhole in ICS18-28 that
may correspond to the Waite Zone and mineralization between the two
main zones, but no other holes have been drilled to this depth
nearby, so follow up is required to determine continuity.
Table 1. Summary of Assay Results
Hole
ID
|
Zone
|
From
(m)
|
To
(m)
|
Drilled
Length
(m)
|
True
Width
(m)
|
True
Width
(feet)
|
Cobalt
%
|
Copper %
|
CoEq
%
|
ICS18-28
|
Hangingwall
|
192.0
|
193.9
|
1.9
|
1.0
|
3.2
|
0.00
|
1.22
|
0.12
|
|
No Name
|
383.4
|
399.5
|
16.1
|
12.0
|
39.4
|
0.20
|
0.01
|
0.20
|
|
including
|
386.8
|
392.0
|
5.2
|
3.9
|
12.7
|
0.35
|
0.01
|
0.35
|
|
Between
|
442.9
|
444.9
|
2.0
|
1.5
|
5.0
|
0.13
|
0.01
|
0.13
|
|
Waite
|
458.9
|
463.2
|
4.2
|
3.3
|
10.9
|
0.12
|
0.00
|
0.12
|
|
Footwall
|
487.1
|
489.0
|
1.8
|
1.4
|
4.7
|
0.21
|
0.00
|
0.21
|
Previously
Reported Holes
|
ICS18-19
|
No Name
|
214.7
|
223.6
|
8.9
|
4.8
|
15.8
|
0.35
|
0.07
|
0.35
|
|
including
|
216.3
|
218.5
|
2.2
|
1.2
|
3.9
|
0.51
|
0.11
|
0.52
|
|
Between
|
258.7
|
272.9
|
14.1
|
7.6
|
25.1
|
0.29
|
0.02
|
0.29
|
|
including
|
268.5
|
270.6
|
2.1
|
1.1
|
3.7
|
0.56
|
0.03
|
0.56
|
|
Between
|
273.3
|
274.5
|
1.2
|
0.7
|
2.2
|
0.04
|
4.46
|
0.49
|
ICS18-26
|
Hangingwall
|
229.0
|
244.5
|
15.5
|
14.1
|
46.4
|
0.11
|
0.08
|
0.12
|
|
No Name
|
255.6
|
285.4
|
29.8
|
27.1
|
88.9
|
0.13
|
0.19
|
0.15
|
|
Between
|
294.3
|
304.3
|
9.9
|
9.0
|
29.7
|
0.22
|
0.05
|
0.22
|
|
including
|
300.5
|
303.4
|
2.9
|
2.6
|
8.6
|
0.42
|
0.03
|
0.42
|
|
Waite
|
345.9
|
350.7
|
4.8
|
4.4
|
14.4
|
0.20
|
0.02
|
0.20
|
|
Footwall
|
370.5
|
384.9
|
14.4
|
13.1
|
42.9
|
0.16
|
0.00
|
0.16
|
IC17-19
|
No Name
|
36.9
|
56.4
|
19.5
|
18.7
|
61.4
|
0.30
|
0.74
|
0.37
|
|
including
|
39.6
|
45.7
|
6.1
|
5.9
|
19.2
|
0.43
|
0.32
|
0.46
|
|
Between
|
62.5
|
66.3
|
3.8
|
3.6
|
11.9
|
0.12
|
0.64
|
0.18
|
|
Waite
|
89.0
|
100.1
|
11.1
|
10.6
|
34.8
|
0.15
|
0.53
|
0.20
|
|
including
|
98.1
|
100.1
|
1.9
|
1.8
|
6.0
|
0.41
|
0.00
|
0.41
|
|
Footwall
|
111.3
|
119.8
|
8.5
|
8.2
|
26.9
|
0.23
|
0.00
|
0.23
|
|
including
|
112.8
|
116.9
|
4.1
|
4.0
|
13.1
|
0.37
|
0.00
|
0.37
|
|
Footwall
|
132.6
|
135.6
|
3.0
|
2.9
|
9.6
|
0.15
|
0.00
|
0.15
|
True thickness estimated from 3D geological model also
considering drill holes on strike. Cobalt equivalent is calculated
as %CoEq = %Co + (%Cu/10) based on US$30/lb Co and US$3/lb Cu. No metallurgical recoveries were
applied to either metal as it is expected that the metallurgical
recoveries will be similar for both metals. Flotation tests support
the Company's opinion that both cobalt and copper are of sufficient
grade to be recovered.
Private Placement
First Cobalt also announces that it has entered into an
agreement with an investor on a non-brokered private placement of
11,111,111 units (the "Units") of the Company at a price of
$0.18 per Unit for gross proceeds of
$2,000,000 (the "Offering"). Each
Unit issued pursuant to the Offering will consist of one common
share in the capital of the Company and one Common Share purchase
warrant (a "Warrant"). Each Warrant entitles the holder thereof to
purchase one additional Common Share at a price of $0.27 for a period of two years. The Warrants are
subject to an acceleration clause such that, if the closing price
of the common shares of the Company is equal to or greater than
$0.37 per share for a period of ten
consecutive trading days, the Company shall have the option, but
not the obligation, to effect an accelerated expiration date that
shall be 20 calendar days from the issuance of a notice of
acceleration. There is no commission paid to any party as part of
the arrangement. Proceeds of the Offering will be used by the
Company to support ongoing work at the First Cobalt Refinery as
well as general corporate purposes.
Closing of the Offering is expected to occur on or about
March 18, 2019 and is subject to
receipt of regulatory approvals, including the approval of the TSX
Venture Exchange. The securities to be issued under the Offering
will have a hold period of four months and one day from their
issue. The securities being offered will not be registered under
the United States Securities Act of 1933, as amended and may not be
offered or sold within the United
States absent registration or an exemption from the
registration requirements. This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the
securities in the United
States.
Quality Assurance and Quality Control
First Cobalt has implemented a quality control program to comply
with industry best practices for sampling, chain of custody and
analyses. Blanks, duplicates and standards are inserted at the core
processing site as part of the QA/QC program. Samples are prepared
and analyzed by American Assay Laboratories (AAL) in Sparks, Nevada. Over 15% of the samples
analyzed are control samples consisting of checks, blanks, and
duplicates inserted by the Company; in addition to the control
samples inserted by the lab. Drill core samples are dried, weighed
crushed to 85 % passing -6 mesh, roll crushed to 85% passing -10
mesh, split 250 gram pulps, then pulverized in a closed bowl ring
pulverizer to 95% passing -150 mesh, then analyzed by a 5 acid
digestion for ICP analysis. All samples have passed QA/QC
protocols.
Qualified and Competent Person Statement
Dr. Frank Santaguida, P.Geo., is
the Qualified Person as defined by National Instrument 43-101 who
has reviewed and approved the contents of this news release. Dr.
Santaguida is also a Competent Person (as defined in the JORC Code,
2012 edition) who is a practicing member of the Association of
Professional Geologists of Ontario
(being a 'Recognised Professional Organisation' for the purposes of
the ASX Listing Rules). Dr. Santaguida is employed on a full-time
basis as Vice President, Exploration for First Cobalt. He has
sufficient experience that is relevant to the activity being
undertaken to qualify as a Competent Person as defined in the JORC
Code.
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,
which has an alternative underground-only scenario of 4.4 million
tonnes grading 0.3% cobalt equivalent. The Company also owns the
only permitted primary cobalt refinery in North America. The refinery is currently on
care and maintenance and the Company is exploring a potential
restart of the Refinery, which has the potential to produce 2,000
tonnes of cobalt material per year.
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.