TORONTO, Sept. 4, 2018 /CNW/ - First Cobalt Corp. (TSX-V:
FCC; ASX: FCC; OTCQX: FTSSF) (the "Company") is pleased to announce
the acquisition of 100% ownership and elimination of the
outstanding royalty on the Iron Creek property in Idaho, USA.
Trent Mell, President & Chief
Executive Officer, commented:
"Our outlook for the Iron Creek Project was instrumental in
the decision to eliminate the outstanding royalty and acquire 100%
ownership of the project at this time. Drilling has identified two
broad zones of cobalt-copper mineralization that extend well beyond
the historic resource area. The Company is fully funded to complete
our work programs in the USA and
Canada this year and into 2019. We
anticipate releasing preliminary metallurgical work and the maiden
resource estimate for Iron Creek in the next few weeks."
The Iron Creek Project was previously under lease to First
Cobalt. Under the terms of the lease, First Cobalt was required to
make monthly payments and the leaseholder retained a 4% royalty
over future production, both of which could be eliminated through a
one-time payment. First Cobalt and the leaseholder agreed to a 47%
reduction of this payment to US$1.07
million, which has now been paid in full. As of June 30, 2018, First Cobalt reported a cash
balance of $20 million and an
additional $2 million in current
assets. The Company is fully financed to complete all current work
programs including over 30,000m of
diamond drilling to further test the cobalt-copper mineralized
zones.
Full ownership of the Iron Creek property and elimination of any
future royalty payments streamlines future permitting and
development activities and accelerates the mine planning process.
The Company has begun a consultation process and collecting
baseline data for future permitting requirements.
First Cobalt's Iron Creek property consists of mining patents
and exploration claims with significant infrastructure including
600 metres of drifting from three adits and an all-weather road
connecting the project to a state highway. Several inferred
resource calculations were made in the 1980s and 1990s considering
only the No Name Zone, where historic drilling was most dense.
One historic estimate (non-compliant with NI 43-101) by Noranda
Inc. reported 1.3 million tons grading 0.59% cobalt and 0.3%
copper, using a cutoff grade of 1% copper equivalent. A new NI
43-101-compliant mineral resource estimate calculation is imminent.
The Company expects the new resource estimate to realize wider true
thickness of mineralization encountered by First Cobalt drilling
than previously recognized by the historic calculation. The new
resource estimate is expected to include additional lower grade
material than the higher grade single zone of mineralization
historically recognized. The initial resource estimate will include
two zones of mineralization drilled in 2017 and early 2018: the No
Name Zone and the Waite Zone (Figure 1).
In June, First Cobalt announced a $9M program intended to accelerate work programs
at Iron Creek. Preliminary metallurgical work and the maiden
resource estimate are nearing completion and are anticipated in the
next few weeks. Throughout July and August, the Company operated
three surface drills at Iron Creek (see July
12, 2018 press release) in order to extend the known
mineralization along strike and bring a portion of the initial
Inferred Mineral Resource estimate into a Measured and Indicated
Resource category. This second resource estimate is expected in
early 2019 (see June 11, 2018 press
release).
The No Name and Waite Zones are roughly parallel and dip roughly
75° to the north, remaining open along strike to the east and west,
as well as down dip. To date, the Company has drilled over
520m of mineralization strike length
and 250m of dip extension. The No
Name Zone and the Waite Zone have true widths between 10m and 30m.
Mineralization also occurs between the two zones as 1 to
5m pods. Additional mineralization
has been encountered in the hangingwall and footwall of the zones
and some holes in the 2018 program are intended to confirm the
potential for additional mineralized zones.
Unlike much of the Idaho Cobalt Belt, the Iron Creek Project
cobalt mineralization is associated with pyrite rather than
minerals containing arsenic. 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. 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.
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
As a vertically integrated North American cobalt company, First
Cobalt's strategy is to explore, develop and refine material in
North America for sale back into
the American battery market. 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); 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.