TORONTO, Oct. 10, 2019 /CNW/ - First Cobalt Corp.
(TSX-V:FCC, OTCQX:FTSSF) (the "Company") is pleased to announce
that power has been restored to the First Cobalt Refinery and that
a team of engineers and technicians has been deployed to commence a
field program. The work is in support of an ongoing definitive
feasibility study ("DFS") led by Ausenco Engineering Canada on a
recommissioning and expansion of the existing First Cobalt
Refinery, located a 5 hour drive north of Toronto, Canada.
A scoping study released in May
2019 concluded that the First Cobalt Refinery could be
expanded from its current 12 tonne per day (tpd) throughput
capacity to 55 tpd. The study and supporting metallurgical test
work estimated that the Refinery was capable of producing over
5,000 tonnes per year of battery-grade cobalt in sulfate for the
electric vehicle industry at a capital cost of US$37.5 million, which could represent up to 5%
of the global market for refined cobalt. The Company is now
contemplating recommissioning the Refinery at 12 tpd in 2020 and
then expanding to 55 tpd in 2021.
The field program involves temporarily restoring power to the
Refinery to inspect and test all installed equipment and systems to
gain a better understanding of their condition. This phase of work
will identify components that require upgrading or replacement
prior to recommissioning the Refinery. This will allow for greater
level of confidence in the capital cost estimates included in the
55 tpd DFS and will better prepare First Cobalt for a quick
recommissioning of the Refinery upon a formal restart decision. A
team of 12 people will be on site to complete the work over a
six-week period and the DFS is expected to be completed in Q1
2020.
First Cobalt Vice President Peter
Campbell, P.Eng. commented, "The Refinery was commissioned
in 1996 and has been kept in a very good state of repair. This
field program will provide greater confidence on the key components
required to recommission the facility, which has been on care and
maintenance since 2015. Findings from this field program will be
incorporated into an ongoing Definitive Feasibility Study that
remains on schedule for completion in the first quarter of
2020."
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. Testing of third-party cobalt hydroxide as a
potential source of feed confirmed that the existing processes in
the Refinery are capable of producing a high purity, battery grade
cobalt sulfate.
With no cobalt sulfate production in North America today, the Refinery has the
potential to become the first such producer for the battery market.
Today, most of the world's cobalt refining capacity is located in
China, particularly the refining
of cobalt sulfate for the EV market.
A final decision to put the Refinery back into production is
contingent on the outcome of the feasibility study and the
completion of a long-term feed supply agreement with Glencore. It
is the only permitted primary cobalt refinery in North America.
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.