TORONTO, July 10, 2018 /CNW/ - First Cobalt Corp. (TSX-V:
FCC; ASX: FCC; OTCQX: FTSSF) (the "Company") is pleased to announce
that drilling in the Canadian Cobalt Camp has identified a second
cobalt mineralization trend within the Kerr area near surface
extending over a 500-metre strike length. This mineralized trend is
located parallel to and 400 metres north of the previously
identified Kerr #2 Zone, which has been traced over 350 metres to
date.
Highlights
- Several mineralized intervals near the historic Drummond and
Kerr Lake Mines containing multiple
closely spaced cobalt-silver veins
- Intervals include 6.5m grading
0.33% Co and 133 g/t Ag and 10.7m of
0.14% Co and 13.9 g/t Ag, including 6.9m of 0.21% Co and 12.5g/t Ag
-
- Longer intervals include 26.7m of
0.05% Co and 13 g/t Ag
- Shallow areas targeted with most mineralization intercepted
within 60m of surface; deeper targets
will be tested at a later date
- Cobalt mineralization in both the Kerr #2 and the Drummond-Kerr
areas is mainly hosted by sedimentary rocks and in some places
occurs along preferred horizons where veins are well developed
Trent Mell, President & Chief
Executive Officer, commented:
"The results reported today are just 400 metres north of the
Kerr #2 Zone, providing great encouragement to our vision of large
scale open pit mining in the Cobalt Camp. We are reallocating a
larger portion of the 2018 exploration budget to the Kerr area
despite having a multitude of prospective targets across our land
package. Results from nine drill holes are pending and additional
drilling is planned.
The valuation of battery metals explorers, developers and
miners have come under pressure in recent months, however First
Cobalt is well positioned to capitalize as market sentiment
improves. Our programs are fully-financed into 2019, work programs
in Idaho and Ontario are progressing well and we own a
permitted North American cobalt refinery, giving us the potential
to become a near-term producer outside of the DRC and in proximity
to U.S.-based lithium-ion battery manufacturers."
First Cobalt previously identified a network of multiple veins
at various orientations in the Kerr #2 Zone containing cobalt and
several other metals along with disseminated mineralization across
a 350m strike length (see
May 24, 2018 press release). Today's
results confirm the existence of a second cobalt mineralized trend
parallel to and 400m north of the
Kerr #2 Zone. Cobalt mineralization has been traced within the
known 500m strike length of the
historic Drummond and Kerr Lake
Mines.
Fifteen holes totaling over 2,200m
were drilled along the strike extent of the historic Kerr Lake and Drummond
Mines, where several silver veins were known to occur. The
silver veins occur at multiple orientations and are considered to
be a continuous network of mineralization. Results show cobalt
mineralization occurring as broad intervals beyond previously mined
silver stopes.
Assay results from the first six holes are reported today and
results of the other nine are pending. Results reflect
cobalt-silver mineralization as closely spaced veins and along fine
fractures within broad zones, up to 26.7m in drilling width. The higher frequency of
veining at both Kerr Lake and
Drummond suggests the cobalt-silver mineralization previously
reported from the Kerr #2 Zone may be a distal portion to this more
extensive vein network (Figure 1). Further testing is required to
determine the continuity within the vein network system.
Results from the first six holes include 6.5m of 0.33% Co and 133 g/t Ag and 10.7m of 0.14% Co and 13.9 g/t Ag, including
6.9m of 0.21% Co and 12.5g/t Ag.
Longer intervals include 26.7m of
0.05% Co and 13 g/t Ag within 40m of
0.04% Co and 9 g/t Ag. All of the holes reported today contain
anomalous cobalt mineralization over long widths and results
demonstrate an ideal structural setting for the development of a
closely-spaced vein network in the Kerr
Lake area. A complete list of results is available in Table
1.
The Kerr area in Cobalt North contains several historic silver
mines, including Crown Reserve, Kerr
Lake, Lawson, Drummond, Conisil and Hargrave. This area
produced over 50 million ounces silver and 900,000 pounds of
cobalt, mainly between 1905 to 1950. Other past-producing mines
owned by First Cobalt in the Cobalt North area include the Silver
Banner, Juno, Silverfields, Hamilton and Ophir
Mines. The deepest shaft was less than 200m.
The Kerr Lake Mine consisted of thirteen separate shafts with
over 20km of underground development. The Kerr Lake, Crown Reserve and Drummond Mines were initially mined individually
and later connected by underground workings for silver exploration
and drilling. The vein system at Kerr and Drummond is extensive,
covering an area of more than 650m by
250m, and is considered part of a
continuous network. Previous exploration did not assay for cobalt,
making the area is highly prospective.
Detailed Results
Drill holes were planned using a proprietary 3D geological model
based on digital compilation of historic mine workings, integrated
with exploration drilling and surface bedrock geology maps of the
entire Kerr area compiled by First Cobalt. The historic
Kerr Lake and Drummond Mines were targeted to test for cobalt
mineralization adjacent to the previously mined silver-rich vein
system. Sampling of muckpiles from the Drummond Mine indicated
cobalt mineralization is associated with silver as well as copper,
zinc and lead in the wallrocks to veins (October 26, 2017 press release). Various drill
orientations were designed to test the full range of vein
directions that occur.
Within the drill holes, multiple orientations of veins were
measured, with two prevailing directions: 1) an easterly
orientation transecting both Huronian sedimentary and volcanic and
Archean rocks and 2) a northerly orientation following sedimentary
rock horizons within the Huronian and Archean sequences (Figure
2).
At the Kerr Lake Mine, historic underground workings extend over
500m along the strike length of the
vein network. Four of the six holes are from this area, testing the
wallrocks within underground workings. Assay results show cobalt
minerals occur within discrete veins and along fine fractures.
Silver is associated with cobalt, but distinct silver-bearing
minerals were not noted.
Holes FCC-18-0055 and FCC-18-0056 are collared from the same
station and holes FCC-18-0059 and FCC-18-0061 are collared from a
single station to the east. Cobalt mineralization within these
holes reflects an approximate strike length of 200m for the known vein network system.
Two holes at the Drummond Mine targeted historic silver
mineralization within a sedimentary rock unit near the
Archean-Huronian contact. The unit strikes north-south and holes
were oriented to test along the strike extent. Hole FCC-18-0066
intersected several cobalt veins within a volcaniclastic rock unit
not previously considered as a typical host to mineralization. The
volcaniclastic unit has not been previously described in the Cobalt
Camp and may have been considered part of the Archean rock
sequence. However, the flat lying orientation of the unit confirms
a Huronian position, thus represents a unique style of
mineralization not explored previously. Additional holes have been
drilled to test this unit with assays pending.
In all six holes from Kerr Lake
and Drummond, elevated values of copper, zinc and lead were
encountered. Minerals containing these metals occur within the same
veins as cobalt minerals as well as within separate veins extending
beyond the intervals reported here. Copper, zinc and lead are
considered peripheral metals to the cobalt-silver mineralization
and reflect a zoning pattern that further defines the limits of the
vein network system. In hole FCC-18-0056, outside of the reported
interval of 83.1 to 84.9m, 1.40% zinc
and 1.00% lead with 13 g/t silver occurs over 1.23m. Further down the hole, zinc grades in
individual veins are up to 4.5% over 0.3m in the interval between 134.5 and
135.9m.
Table 1:
Summary of assay results
|
Area
|
Hole
ID
|
From
(m)
|
To
(m)
|
Width
(m)
|
Co
%
|
Ag
g/t
|
Ni
%
|
Cu
%
|
Pb
%
|
Zn
%
|
Kerr Lake
|
FCC-18-0055
|
81.0
|
87.5
|
6.5
|
0.33
|
133.2
|
0.01
|
0.13
|
0.84
|
0.23
|
|
includes
|
85.0
|
87.5
|
2.5
|
0.84
|
328.4
|
0.02
|
0.13
|
2.02
|
0.45
|
Kerr Lake
|
FCC-18-0056
|
43.3
|
70.0
|
26.7
|
0.05
|
13.0
|
0.01
|
0.11
|
0.15
|
0.14
|
|
includes
|
58.3
|
59.5
|
1.2
|
0.71
|
30.3
|
0.06
|
0.15
|
0.03
|
0.02
|
|
FCC-18-0056
|
83.1
|
84.9
|
1.8
|
0.23
|
0.8
|
0.02
|
0.01
|
0.00
|
0.01
|
|
FCC-18-0056
|
125.8
|
129.0
|
3.5
|
0.06
|
12.5
|
0.02
|
0.11
|
0.10
|
0.16
|
|
FCC-18-0056
|
134.3
|
135.9
|
1.6
|
0.03
|
15.9
|
0.01
|
0.18
|
0.42
|
1.62
|
Kerr Lake
|
FCC-18-0059
|
70.6
|
74.0
|
3.5
|
0.05
|
20.3
|
0.02
|
0.26
|
0.71
|
0.40
|
|
FCC-18-0059
|
101.5
|
118.9
|
17.4
|
0.05
|
9.6
|
0.01
|
0.03
|
0.15
|
0.25
|
|
includes
|
101.5
|
103.0
|
1.6
|
0.19
|
46.6
|
0.04
|
0.06
|
0.18
|
0.29
|
Kerr Lake
|
FCC-18-0061
|
163.7
|
166.9
|
3.2
|
0.05
|
8.7
|
0.04
|
0.07
|
0.31
|
0.38
|
|
FCC-18-0061
|
36.7
|
40.0
|
3.3
|
0.06
|
68.8
|
0.05
|
0.07
|
0.22
|
0.20
|
Drummond
|
FCC-18-0066
|
18.3
|
29.0
|
10.7
|
0.14
|
13.9
|
0.02
|
0.15
|
0.29
|
0.49
|
|
includes
|
18.3
|
25.2
|
6.9
|
0.21
|
12.5
|
0.02
|
0.15
|
0.15
|
0.22
|
|
FCC-18-0066
|
48.0
|
55.8
|
7.8
|
0.06
|
9.9
|
0.01
|
0.11
|
0.11
|
0.12
|
Drummond
|
FCC-18-0063
|
25.0
|
27.7
|
2.7
|
0.08
|
52.0
|
0.01
|
0.21
|
0.26
|
0.38
|
|
FCC-18-0063
|
32.0
|
35.0
|
3.0
|
0.08
|
46.8
|
0.01
|
0.13
|
0.55
|
0.51
|
|
FCC-18-0063
|
106.0
|
108.0
|
2.0
|
0.15
|
27.2
|
0.01
|
0.58
|
1.34
|
0.72
|
Drilling lengths
are as recorded downhole and do not necessarily represent true
widths of mineralization as multiple vein orientations have been
intersected.
|
For a table of drill hole locations and assay results to date,
visit
https://www.firstcobalt.com/projects/greater-cobalt/cobalt-north/.
Quality Assurance and Quality Control
First Cobalt has implemented a quality control program to comply
with common industry best practices for sampling and analysis.
Samples are collected from drill core from a range of 30 to 100cm
length. Half-core samples are submitted for analysis. Standards and
blanks are inserted every 20 samples. Duplicates are made from
quarter core splits every 20 samples. Geochemical data were
received from AGAT Laboratories in Mississauga, Ontario, Canada. All results have
passed QA/QC protocols. AGAT has used a sodium-peroxide fusion and
ICP finish for analyses on all samples. High silver values (>20
g/t) are determined by a separate three-acid digestion and ICP
finish.
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.
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.