TORONTO, March 20, 2018 /CNW/ - First Cobalt Corp.
(TSX-V: FCC, ASX: FCC, OTCQB: FTSSF) (the "Company") today
announces the commencement of a metallurgical study to be conducted
on a high grade inventory of refinery residue and crushed waste
rock material located near the First Cobalt mill facility in the
Canadian Cobalt Camp. This study is intended to advance the
Company's early cash flow strategy by assessing an optimal flow
sheet for recovering cobalt and silver, as well as arsenic removal
and stabilization.
Highlights
- Program will provide further insights into opportunities for
early cash flow from processing surface muckpiles from historic
underground mining operations
- Testing will be done on three piles with a historic resource
estimate, prepared before the Company acquired an interest in the
properties, totalling approximately 6,500 tonnes with average
grades ranging from 0.65% to 1.55% cobalt (non-compliant with NI
43-101)*
- Metallurgical testwork aimed at elaborating a process flow
sheet based on analytical characterization of the samples, gravity
concentration, hydrometallurgical recovery of cobalt and silver, as
well as arsenic removal and stabilization
- Success could have broader implications for the ongoing
assessment of processing options for historical mine material
throughout the Cobalt Camp using First Cobalt's mill and
refinery
Trent Mell, President & Chief
Executive Officer, commented:
"The results of this program will improve our understanding
of processing options for materials from the Cobalt Camp. While we
continue to advance our exploration strategy, another key strategic
objective is to seize upon the opportunity to generate early cash
flow from material left on surface from historic mining operations.
This study is an important step toward our goal of producing cobalt
battery materials in North
America."
First Cobalt has partnered with Dundee Sustainable Technologies
in Quebec to develop a flow sheet
for potentially processing the piles using the First Cobalt mill
equipment and the First Cobalt Refinery and to understand the
benefits of integrating Dundee's
arsenic removal and stabilization technology.
According to a 2014 historic resource estimate, which is
non-compliant with NI 43-101 and was prepared by an external
consultant for internal use for a previous property owner, the
three piles contain approximately 6,500 tonnes* of
material with average grades ranging from 0.65% to 1.55% cobalt
(see table 1). One of the piles consists of broken rock material
from the site of the old Kerr mine and mill. Another pile consists
of previously processed high grade refinery residue material
containing primarily silver and cobalt and the third pile is a
mixture of both materials.
Table 1. Historical Resource Estimate - Averages of samples
taken from three piles to be studied.
|
|
|
|
|
|
Pile
|
Est.
Tonnes*
|
# of
Samples
|
Avg.
Co%
|
Avg.
Ag
g/t
|
Avg.
Ni%
|
Refinery
Residue
|
1,208
|
10
|
1.55
|
1,142
|
0.54
|
Crushed Waste
Rock
|
3,906
|
122
|
0.65
|
540
|
0.23
|
Mixed
|
1,474
|
125
|
1.27
|
1035
|
0.44
|
* Non-compliant with
NI 43-101. Actual tonnage could be lower due to historical
relocation and recontouring of the piles from their original
location and bulk sampling and testing campaigns. See Historical
Estimates footnote for additional details.
|
The results of this study will advance our knowledge of how to
improve cobalt recovery out of materials in the Cobalt Camp and
could lead to early cash flow from the processing of these high
grade piles. Historic processing of material from this Camp focused
on recovery of silver and did not focus on the recovery of
cobalt.
This study is supported by a mineralogical assessment of sample
material from various historical mines conducted by XPS Consulting
and Testwork Services (see October 5,
2017 press release). The XPS study concluded that the
various cobalt-rich and silver-rich mineralization styles found in
the Camp may be processed using similar flowsheets throughout the
Cobalt Camp.
Work is ongoing for the more extensive muckpile sampling program
at a number of historic mining operations throughout the Cobalt
Camp, the details of which were announced November 15, 2017.
The Dundee study is expected to
be completed by the end of the second quarter and aims to advance
the processing flowsheet based on studying the analytical
characterization of the submitted material, the amenability of the
material to be concentrated by gravity, the recovery of metallic
values by hydrometallurgical process and the Dundee Sustainable
Technologies processes for arsenic removal and stabilization.
Qualified and Competent Person Statement
Peter Campbell, P.Eng., is the
Qualified Person as defined by National Instrument 43-101 who has
reviewed and approved the contents of this news release. Mr.
Campbell is also a Competent Person (as defined in the JORC Code,
2012 edition) who is a practicing member of the Professional
Engineers of Ontario (being a
'Recognised Professional Organisation' for the purposes of the ASX
Listing Rules). Mr. Campbell is employed on a full-time basis as
Vice President, Business Development 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.
Historic Estimates
This news release contains references to a historical estimate
which cannot and should not be relied upon. First Cobalt is not
treating the historical estimate as a current mineral resource or
mineral reserve. The historical estimate was prepared by an
external consultant for internal use for a previous property owner
in 2014. A qualified person has not done sufficient work to
classify the historical estimate as a current mineral resource or
mineral reserve. The historical estimate does not use categories
that conform to current CIM Definition Standards on Mineral
Resources and Mineral Reserves as outlined in NI 43-101 and has not
been redefined to conform to current CIM Definition Standards. More
work, including, but not limited to volumetric measurements and
confirmatory sampling will be required to conform the estimate to
current CIM Definition Standards. Investors are cautioned that the
historical estimate does not mean or imply that economic deposits
exist. First Cobalt has not undertaken any independent
investigation of the historical estimate nor has it independently
analyzed the results of the previous analysis in order to verify
the accuracy of the information.
About First Cobalt
First Cobalt is the largest land owner in the Cobalt Camp in
Ontario, Canada. The Company
controls over 10,000 hectares of prospective land and 50 historic
mines as well as a mill and the only permitted cobalt refinery in
North America capable of producing
battery materials. First Cobalt began drilling in the Cobalt Camp
in 2017 and seeks to build shareholder value through new discovery
and growth opportunities.
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 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 include
the reliability of the historical data referenced in this press
release and risks set out in First Cobalt's public documents,
including in each management discussion and analysis, 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.