TORONTO, Sept. 4, 2019 /CNW/ - First Cobalt
Corp. (TSX-V:FCC, OTCQX:FTSSF) (the "Company") is pleased
to announce that it has awarded key contracts to complete a 55
tonnes per day (tpd) feasibility study on the proposed expansion to
the First Cobalt Refinery (the "Refinery"). Field work is expected
to commence in September and will culminate in the delivery of a
definitive feasibility study (DFS) in Q1 2020.
HIGHLIGHTS
- Ausenco Engineering Canada Inc. to lead in the
preparation of a DFS for a refinery restart at 55 tpd with
contracts awarded to:
-
- SGS for advanced metallurgical test work on cobalt
hydroxide and a specialty cobalt feed to be supplied by
Glencore
- Knight Piésold for tailings studies in support of the
feasibility study
- Story Environmental for all environmental and
permitting aspects of the engineering studies
- Glencore will provide technical support throughout the
study phase through Sudbury-based affiliate, XPS - Expert Process
Solutions
- Work will be completed before the end of Q1 2020 and
deliverables will include a NI 43-101 DFS on a 55 tpd refinery
restart and a prefeasibility study (PFS) on a 12 tpd interim
operating scenario
DETAILS
First Cobalt recently announced
that it had entered into a US$5
million loan facility with Glencore AG to complete advanced
engineering, metallurgical testing, field work and permitting
associated with a recommissioning and expansion of the Refinery in
Canada (see August 26, 2019 press release). Upon completion
of a positive DFS for a refinery expansion in Q1 2020 and subject
to certain other terms and conditions, Glencore is prepared to
advance an additional US$40 million
to recommission and expand the Refinery.
Ausenco of Toronto has been
retained to prepare various engineering studies in support of
restarting and expanding the Refinery, located near Cobalt, Ontario. Three engineering studies
will be completed, which will include an interim scenario for
restarting the Refinery at its current capacity of 12 tpd in a PFS
as well as a DFS on expanding the refinery at a throughput of
approximately 55 tpd. These two options roughly correspond to
scenarios outlined in a scoping-level study previously completed by
Ausenco (see May 28, 2019 press
release). A third study will examine a scenario of first restarting
production at 12 tpd and subsequently increasing throughput to 55
tpd. Work related to the tailing management facility for the DFS
will be completed by Knight Piésold of North Bay, Ontario.
SGS of Lakefield, Ontario has
been selected to complete advanced metallurgical test work on
cobalt hydroxide and a specialty cobalt feed, both supplied by
Glencore. First Cobalt previously
partnered with SGS to produce a high purity battery-grade cobalt
from cobalt hydroxide using the existing First Cobalt Refinery flow
sheet. SGS and Ausenco will work collaboratively to further
optimize the flowsheet in support of the engineering studies. SGS
will also perform the necessary environmental test work on the
tailings that result from the process.
Story Environmental of Haileybury,
Ontario will be responsible for the environmental and
permitting aspects of all three engineering studies. Story
Environmental has been providing environmental consulting services
for the Refinery since 2008 and, as such, is knowledgeable of the
Refinery infrastructure, its surrounding environment and the
environmental regulatory requirements. Initially, this work is
expected to focus on the 12 tpd restart scenario for which the
Refinery is currently permitted.
Trent Mell, First Cobalt
President & CEO, commented, "The First Cobalt Refinery is a
permitted facility that is in excellent condition and has a recent
operating history. Our strategy is to work with Glencore to expand
the Refinery to serve the growing needs of the North American
electric vehicle market. To that end, we have partnered with a
first-rate study team appropriate for the importance of the task at
hand."
Work will commence almost immediately with a field program at
the Refinery. The field program will consist of a small crew
supplied by Ausenco who will test and inspect installed equipment
and systems to gain a better understanding of the condition of
every aspect of the Refinery with a view to identifying which
components require upgrading or replacement.
All of the work will be overseen by First Cobalt Vice President
Peter Campbell, P.Eng., and final
results expected before the end of Q1 2020. Glencore will provide
technical support and oversight as needed throughout the study
phase.
Conference Call and Webcast
Please join us for a conference call and webcast Monday, September 9 at 8:00 am EDT/12:00 pm
UTC to discuss our plans for the First Cobalt Refinery.
Details for the call will be provided at a later date.
About the FCC Refinery
The First Cobalt Refinery is a hydrometallurgical cobalt
refinery in the Canadian Cobalt Camp, approximately 600 kilometres
from the U.S. border. The Company recently completed testing of
third-party cobalt hydroxide as a potential source of feed,
confirming that the existing processes in the Refinery are capable
of producing a high purity, battery grade cobalt sulfate. Most of
the world's cobalt refining capacity is located in China, particularly the refining of cobalt
sulfate for the EV market.
It is the only permitted primary cobalt refinery in North America. With no cobalt sulfate
production in North America today,
the Refinery has the potential to become the first such producer
for the American electric vehicle market.
A corporate video featuring the First Cobalt Refinery is
available on the Company's website at
http://www.firstcobalt.com/investors/media-gallery/videos/.
Readers are advised that a restart of the Refinery will be
linked to a long-term feed supply agreement with Glencore and not
on near-term development of the Company's current projects. A final
decision to put the Refinery back into production is contingent on
the outcome of the feasibility study. While the Company has
completed a scoping study to assess the production capacity,
capital costs and operating costs associated with bringing the
Refinery back into production, a study of the economic viability of
operating the Refinery has not yet been completed.
Corporate Update
The Company has issued incentive grants to directors and
officers to purchase an aggregate of 3,830,000 common shares of
First Cobalt exercisable at yesterday's closing price of
$0.14 for a period of five years. The
grant of options remains subject to the approval of the TSX Venture
Exchange.
About First Cobalt
First Cobalt is a North
American cobalt company and owner of the only permitted primary
cobalt refinery in North America.
The Company is exploring a restart of the First Cobalt Refinery in
Ontario, Canada, which could
produce over 5,000 tonnes of contained cobalt in sulfate per year
from third party feed. First Cobalt's main cobalt exploration project is
the Iron Creek Cobalt Project in Idaho,
USA, which has an inferred mineral resource estimate
available on the Company's website. The Company also controls a
significant land package in the Canadian Cobalt Camp spanning over
100 km2, which contains more than 50 past producing
mines.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
Neither the 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 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.