TORONTO, Jan. 15, 2020 /CNW/ - First Cobalt Corp.
(TSX-V: FCC; OTCQX: FTSSF) (the "Company") is pleased to announce a
new high-grade mineral resource estimate for the Iron Creek Project
in Idaho, USA. In 2019, First
Cobalt completed an infill drill program focused on converting
Inferred Resources to Indicated Resources, resulting in a 49%
conversion to the Indicated category and a 12% increase in
contained cobalt metal while maintaining the average grade. The
deposit is one of the few primary cobalt deposits in America and
remains open along strike and down-dip.
HIGHLIGHTS
- Indicated Resource of 2.2 million tonnes at 0.32% cobalt
equivalent (0.26% cobalt and 0.61% copper) for 12.3 million
pounds of contained cobalt and Inferred Resource of 2.7 million
tonnes at 0.28% cobalt equivalent (0.22% cobalt and 0.68%
copper) for an additional 12.7 million pounds of contained
cobalt
- Infill drilling and limited step-out drilling has upgraded 49%
of the tonnes from the 2018 maiden Inferred resource estimate to
Indicated resources while tonnage has increased by 10%
- Drilling has outlined the strike extent of mineralization to
over 900 metres and down-dip to over 650 metres and mineralization
remains open along strike and down-dip, suggesting strong potential
for significant future resource growth
- Upgrading the resource to a higher confidence level did not
result in a decrease in the resource grade, highlighting the strong
continuity of mineralization
- Thick mineralized zones of up to 30 metres of true thickness
reflect broad stratabound lithological controls; distinction
between the No Name and Waite zones is no longer used
Resource Estimate
Category
|
Tonnes
|
CoEq
(%)
|
Cobalt
(%)
|
Cobalt
(lbs)
|
Copper
(%)
|
Copper
(lbs)
|
Indicated
|
2,154,000
|
0.32
|
0.26
|
12,250,000
|
0.61
|
29,058,000
|
Inferred
|
2,676,000
|
0.28
|
0.22
|
12,685,000
|
0.68
|
39,943,000
|
1.
|
Mineral Resources,
which are not Mineral Reserves, do not have demonstrated economic
viability. The Inferred Mineral Resource in this estimate has a
lower level of confidence than that applied to an Indicated Mineral
Resource and must not be converted to a Mineral Reserve. It is
reasonably expected that the majority of the Inferred Mineral
Resource could be upgraded to an Indicated Mineral Resource with
continued exploration. The Mineral Resources in this press release
were estimated using the Canadian Institute of Mining, Metallurgy
and Petroleum (CIM), CIM Standards on Mineral Resources and
Reserves, Definitions and Guidelines prepared by the CIM Standing
Committee on Reserve Definitions and adopted by CIM
Council.
|
2.
|
Grade cutoff for both
Indicated and Inferred Resources is 0.18% Co Eq calculated as %Co +
%Cu÷10
|
3.
|
The cutoff grade
utilized in the above table was derived from US$30/lb Co and
US$3/lb Cu, consistent with the 2018 resource estimate.
|
4.
|
Three types of
statistical estimates were completed: nearest neighbour, inverse
distance, and kriging. Each method was run several times in order
to determine sensitivity to estimation parameters as well as
optimize the estimation parameters. Results using the inverse
distance estimate are reported in Table 1.
|
5.
|
Block size employed
of 10ft along strike, 5ft across, and 10ft high reflect assumed
underground mining extraction dimensions
|
6.
|
Mineral Resources
reported in the Technical Report in Imperial Tons
|
Trent Mell, First Cobalt
President & CEO, commented:
"Results of the infill drilling campaign exceeded our
expectations and confirms that we have a continuous deposit. Future
work will include drilling along strike and at depth to add tonnes
as well as geophysical surveys to understand the potential of other
nearby targets, including the Ruby Zone. Primary cobalt deposits
are exceptionally rare around the world and we have a large and
growing resource in America, where sourcing critical minerals is a
priority. Identifying future sources of this critical mineral is a
growing priority worldwide for both industrial and strategic
purposes.
In 2020, our primary focus will be to recommission the First
Cobalt Refinery in Ontario, where
we expect to complete two feasibility studies before the end of the
quarter. Pending the results of those studies, we will then work
towards recommissioning the Refinery by Q4 2020."
Overview of Results
The most recent drill campaign and interpretation of results has
led to a new cobalt-copper model containing both Indicated and
Inferred Resources at Iron Creek considered to be amenable to
underground mining extraction (Figure 1). Drilling was successful
demonstrating a single mineralized horizon continuous along strike
and down-dip.
Thicker zones of mineralization occur in the eastern and western
portions of the resource that also contain higher grades of cobalt
and copper (Figure 2). Drilling in the central portion of the
resource showed thickness of mineralization is consistent rather
than thinned as was shown in historic resource models. The
previous mineralization names No Name Zone and Waite Zone are no
longer used as several drill holes have intersected mineralization
between these horizons.
As the cobalt market began to show signs of short-term weakness,
the Company chose to focus on infill drilling which was more cost
effective given that several holes could be drilled from a single
drill station. Several drill stations were nonetheless constructed
for step-out drilling along strike and these were successful at
intersecting cobalt-copper mineralization without closing off
future strike potential.
A total of 49% of the maiden resource is now in the Indicated
category and contained cobalt increased by 12%. Compared to many
other base metal deposits, it is notable that the resource grade
did not decrease as the resource was drilled on a tighter spacing,
providing confidence in the continuity of mineralization over large
widths.
An extensive re-evaluation of drill core found that Iron Creek
mineralization occurs as lenses and pods of pyrite, the dominant
phase hosting cobalt, that are primarily concordant to the
sedimentary layering in the host rocks. Chalcopyrite, the only
copper mineral phase, is disseminated and also occurs as stringers
cutting pyrite mineralization. Spatially, cobalt and copper
geochemical results do not correlate due to this geological
relationship. As a result, cobalt and copper domains were modelled
separately.
The deepest drill hole completed in the latest program,
610m from surface, has shown
mineralization extends beyond 600m
down dip providing targets for further drilling.
Longer drill holes from the stratigraphic hangingwall have
consistently intersected a thick (over 75m) bedded siltite unit providing a marker
contact to stratigraphy. Mineralization is mainly associated with
the occurrence of quartzite layers interbedded with siltite. Drill
holes intersecting the metasedimentary sequence below
mineralization show quartzite layers are sparse and a siltite unit
containing siderite porphyroblasts locally marks the footwall.
Surface holes at the western portion of the resource confirmed
the extension and continuity of higher-grade copper mineralization,
greater than 0.75% (Figure 3). Chalcopyrite stringers are also
found in the stratigraphic hangingwall that represent the
discordant nature of copper mineralization and may be targeted in
future exploration programs.
Comparison to the 2018 Resource Model
A maiden resource estimate release in September 2018 reported only Inferred Resources.
The most recent drilling program provided data from an additional
43 surface and underground holes totaling 13,434m and represent a 47% increase in meterage.
This additional drilling permitted reporting Indicated
Resources.
The 2018 report favoured a base mining scenario of combined open
pit and underground excavation. The 2018 report considered
lower-grade cobalt-copper mineralization near surface for potential
open pit mining methods. This updated report considers underground
extraction may be more effective since the deeper drilling has
shown mineralized extensions down-dip and remain open for further
exploration.
A cutoff grade of 0.18% CoEq was considered appropriate for an
underground scenario in the 2018 report and is also used in the
current report, so a direct comparison between the resource
estimates can be made.
Mineral Resource Estimation Methodology
The resource estimate was prepared in accordance with the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM
Standards on Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by the CIM Council and reported in
accordance with the National Instrument 43-101 Standards of
Disclosure for Mineral Projects by Mr. Steven J. Ristorcelli, C.P.G., Principal
Geologist for Mine Development Associates ("MDA") in Reno, Nevada and a Qualified Person under NI
43-101.
The updated Mineral Resource estimate is based on geological and
structural data from 105 diamond drill holes for a total of 28,563
metres and approximately 21,500 geochemical samples completed by
FCC between 2017 and 2019 (Figure 1). All data used for the
estimation were generated by First Cobalt; no historical data were
included.
Technical and economic factors likely to influence the
"reasonable prospects for eventual economic extraction" were
evaluated using the best judgement of the Qualified Person.
Potential for underground mining was assessed by initially running
stope optimizations using mining costs, processing costs, and
anticipated metallurgical recoveries for similar size operations in
the western United States, and
then updating these by building grade shells around continuously
mineralized zones that could support underground extraction.
The effective date of the report is November 27, 2019, and it will be filed on SEDAR
within 30 days of this press release and will be posted on the
Company website at www.firstcobalt.com. The estimate and report
were completed by Mine Development Associates ("MDA") in
Reno, Nevada.
Recommendations
Infrastructure constructed for the 2018-19 resource drilling
program is suitable for new drilling stations to test extensions of
the Iron Creek cobalt-copper mineralization minimizing cost of the
follow-up program.
Surface mineralization has been identified at the Ruby prospect
approximately 1.5km from the Iron Creek resource (see October 30, 2019 press release). Surface channel
samples returned up to 0.24 % Co over 10.7m of strike continuity. Ruby and other
surface exposures of mineralization will be targeted for drilling
and other work.
Downhole electromagnetic geophysical surveys have indicated both
cobalt and copper mineralization are relatively conductive and may
be detected by ground or airborne techniques. Follow-up surveys are
planned to optimize drill hole targeting along strike of Iron Creek
and elsewhere on the property.
A systematic surface mapping and prospecting program is also
recommended based on the new understanding of the lithological
controls on the Iron Creek mineralization. Regional structures are
known to exist on the property, but the controls on possible
mineralization extensions to Iron Creek and other surface
cobalt-copper prospects require additional work.
Baseline environmental studies initiated in 2017 will progress
to facilitate future exploration programs as well as provide data
for mine permitting. Further metallurgical studies to optimize
cobalt extraction are also being considered.
First Cobalt Idaho Property
Iron Creek is located within First Cobalt's Idaho property, which consists of mining
patents and exploration claims covering an area of 1,698 acres.
Historic underground development at Iron Creek includes 600 metres
of drifting from three adits. An all-weather road connects the
property to a state highway and nearby towns, Challis and Salmon.
Significant infrastructure is in place to support multiple drills
and underground activity.
Iron Creek is one of many cobalt-copper resources and prospects
within the Idaho Cobalt Belt. Mineralization-style throughout the
Belt is considered to be stratabound meta-sedimentary rock hosted.
The United States Geological Survey deems these resources in
Idaho to be strategically
important as a domestic supply of cobalt.
Qualified Person Statement
The technical content of this press release that relates to the
resource estimate has been reviewed and approved by Steven J. Ristorcelli, C.P.G., P.G. of Mine
Development Associates. Dr. Frank
Santaguida, P.Geo., Vice-President of Exploration for the
Company, has reviewed and approved this press release. Both are
Qualified Persons as defined by National Instrument 43-101.
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
25,000 tonnes of cobalt 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 and Indicated 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.
Cautionary Note to Investors - Resource
Estimates
In accordance with applicable Canadian securities regulatory
requirements, all mineral resource estimates of the Company
disclosed or incorporated by reference in this news release have
been prepared in accordance with Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI
43-101"), classified in accordance with Canadian Institute of
Mining Metallurgy and Petroleum's "CIM Standards on Mineral
Resources and Reserves Definitions and Guidelines" (the "CIM
Guidelines").
The Company uses the terms "mineral resources", and "inferred
mineral resources". While those terms are recognized by Canadian
securities regulatory authorities, they are not recognized by the
United States Securities and Exchange Commission (the "SEC") and
the SEC does not permit U.S. companies to disclose resources in
their filings with the SEC. Pursuant to the CIM Guidelines, mineral
resources have a higher degree of uncertainty than mineral reserves
as to their existence as well as their economic and legal
feasibility. Inferred mineral resources, when compared with
measured or indicated mineral resources, have the least certainty
as to their existence, however, it is reasonable to expect that the
majority of inferred mineral resources could be upgraded to
indicated mineral resources with continued exploration. Pursuant to
NI 43-101, inferred mineral resources may not form the basis of any
economic analysis, including any feasibility study. Accordingly,
readers are cautioned not to assume that all or any part of a
mineral resource exists, will ever be converted into a mineral
reserve, or is or will ever be economically or legally mineable or
recovered.
SOURCE First Cobalt Corp.