TORONTO, June 11, 2018 /CNW/ - First Cobalt Corp. (TSX-V:
FCC) (ASX: FCC) (OTCQX: FTSSF) (the "Company") is pleased to
announce a $9 million work program
for the Iron Creek Project in Idaho,
USA, which it acquired on June 4,
2018. The Company intends to publish a mineral resource
estimate by October 2018 and complete
an additional 30,000 metres of drilling designed to double the
mineralized zone along strike beyond the area drilled in 2017.
Highlights
- Maiden NI 43-101 mineral resource estimate expected by
October 2018
- 70-hole program, totalling 30,000m will include both infill drilling to
convert a portion of Inferred Resources into Measured and Indicated
Resources as well as extensional drilling to support a second
resource estimate in early 2019
- Drilling designed to extend the strike length of the
cobalt-copper mineralized zone to 900 metres from the current 460
metres
- Down dip extension of mineralization 200 metres below existing
underground adits will also be tested
- Other zones of mineralization found in the footwall will be
explored
Trent Mell, President & Chief
Executive Officer, commented:
"First Cobalt acquired US Cobalt because we believe that Iron
Creek is one of the most prospective and advanced projects in
North America. With a historic
resource estimate, patented land and 600 metres of underground
development, Iron Creek is a prized high grade primary cobalt asset
in a great mining jurisdiction. Today's budget and work program is
a testament to our conviction about this cobalt-copper projects'
ability to be expanded and ultimately fast-tracked for future
production in North
America."
2018 Iron Creek Program
In 2017, US Cobalt commenced a drill program designed to confirm
a historic estimate (non-compliant with NI 43-101) of 1.3 million
tons grading 0.59% cobalt and 0.3% copper completed in 1980 by
Noranda Inc. The 40-hole, 10,700 metre program covered a 460 metre
strike length and the results of this drill program are the basis
for a mineral resource estimate expected to be completed by October
of 2018.
Drilling in 2017 was done from surface while two historic adits
were rehabilitated. In 2018, underground drill stations were set up
to support surface drilling and extend the known mineralization
westward and down dip beyond the limits of the historic
resource.
First Cobalt's strong treasury has allowed it to double the size
of the 2018 drill campaign from 15,000 metres to 30,000 metres. The
70-hole work program is intended to extend the known mineralization
along strike and bring a portion of the Inferred Mineral Resource
estimate expected in October into a Measured and Indicated Resource
estimate.
Longer holes are planned to test cobalt-copper mineralization
intersected by 2017 drilling in the footwall, which may extend to
surface. Drilling will also test the down dip extension of
mineralization below the existing underground adits.
Drilling began in February from the western-most extent of Adit
#2 (see Figure 1). The first results from the 2018 program were
released on May 23, 2018 (see US
Cobalt press release on www.sedar.com) and all holes encountered
significant cobalt mineralization. The 2018 drilling has extended
the known mineralization to over 520 meters of strike to
date.
In addition to drilling, the 2018 work program will include
surface sampling of bedrock exposures to explore known
cobalt-copper prospects away from the Iron Creek mineralization.
Bore-hole geophysical surveys will also be completed on selected
2017 and 2018 drill holes for magnetic and electromagnetic data
collection. These surveys will characterize mineralization
signatures to facilitate surface geophysical surveys planned for
further exploration on the property.
Iron Creek Property
The Iron Creek property is located in the prolific Idaho Cobalt
Belt and consists of mining patents and exploration claims with
significant infrastructure already in place. Historic underground
development includes 600 metres of drifting from three adits and an
all-weather road connecting the project to a state highway. All
permits are in place for the 2018 drill program.
Two zones of cobalt-copper mineralization, the No Name Zone and
the Waite Zone, were intersected in the 2017 drilling along a
strike length of 460m and tested down
dip to over 150m. Historic drilling,
pre-1960, traced the No Name Zone for over one kilometre of strike
length. Each zone's estimated true thickness is between
10m and 30m and dip steeply to the north, remaining open
at depth.
Cobalt-copper mineralization occurs as semi-massive and
disseminated pyrite and chalcopyrite along stratabound bands within
finely layered meta-sedimentary rocks consisting of interbedded
argillite and quartzite. Cobalt is associated with pyrite. Thin
veins of chalcopyrite also cut the bands and meta-sedimentary
rocks. Quartzite units make up the hangingwall and footwall to the
mineralized meta-sedimentary horizon. This stratigraphic sequence
has been mapped at surface and by drilling to extend along strike
for at least two kilometres.
Several inferred resource calculations were made in the 1980s
and 1990s by Noranda Inc., Inspiration Mines and Cominco Ltd. These
estimates only considered the No Name Zone, where historic drilling
was most dense. The most reliable historic resource estimate, which
is non-compliant with NI 43-101 reporting standards, is 1.3 million
tons grading at 0.59% cobalt and 0.3% copper.
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 vertically integrated North America pure-play cobalt company. First
Cobalt has three significant North American assets: the Iron Creek
Project in Idaho, which has a
historic mineral resource estimate (non-compliant with NI 43-101)
of 1.3M tons grading 0.59% cobalt;
the Canadian Cobalt Camp, with more than 50 past producing mines;
and the only permitted cobalt refinery in North America capable of producing battery
materials. The Iron Creek Project is, subject to First Cobalt's
buy-out rights, leased from Chester Mining Company.
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 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.
Historic Estimates
First Cobalt considers the cobalt and copper tonnage and
grade estimates above as historical estimates. The historical
estimates do not use categories that conform to current CIM
Definition Standards on Mineral Resources and Mineral Reserves as
outlined in National Instrument 43-101, Standards of Disclosure for
Mineral Projects ("NI 43-101") and have not been redefined to
conform to current CIM Definition Standards. They were prepared in
the 1980s prior to the adoption and implementation of NI 43-101. A
qualified person has not done sufficient work to classify the
historical estimates as current mineral resources and First Cobalt
is not treating the historical estimates as current mineral
resources. More work, including, but not limited to, drilling, will
be required to conform the estimates to current CIM Definition
Standards. Investors are cautioned that the historical estimates do
not mean or imply that economic deposits exist on the Iron Creek
property. First Cobalt has not undertaken any independent
investigation of the historical estimates nor has it independently
analyzed the results of the previous exploration work in order to
verify the accuracy of the information. First Cobalt believes that
the historical estimates are relevant to guide exploration on the
Iron Creek property.
SOURCE First Cobalt Corp.