TORONTO, Nov. 8, 2018 /CNW/ - First Cobalt Corp.
(TSX-V: FCC; ASX: FCC; OTCQX: FTSSF) (the "Company") is pleased to
announce that it has commenced testing cobalt hydroxide material as
feedstock for the First Cobalt Refinery.
Highlights
- SGS Canada retained to test
suitability of different cobalt feed material using the First
Cobalt Refinery's current flowsheet
- Cobalt hydroxide material to
be assessed as a source of feed for the refinery to produce cobalt
sulphate or metallic cobalt products for sale into the North
American market
- Discussions are underway with cobalt miners and commodity
traders to explore options for ethically sourced cobalt
hydroxide
- Cobalt Camp muckpile sampling and ore sorting programs indicate
potential as incremental feed
Trent Mell, President & Chief
Executive Officer, commented:
"Our objective is to enter into a long-term agreement for a
reliable source of ethically-mined cobalt. The cash flow potential
from restarting the refinery in as little as 18 months could allow
us to fund a significant amount of work to advance our flagship
Iron Creek Cobalt Project in Idaho,
USA while also providing a much-needed North American source
of cobalt. In parallel with these tests, management has commenced
discussions with third party sources of capital that would minimize
or eliminate any equity dilution associated with a restart of the
First Cobalt Refinery."
The First Cobalt Refinery is a hydrometallurgical cobalt
refinery in the Canadian Cobalt Camp, approximately 500 kilometres
from the US border. On October 10,
the Company released the results of three independent studies
undertaken to estimate capital requirements, operating costs,
permit renewal timelines, potential feedstock options and offtake
opportunities. At a 24 tonne per day feed rate and using the
current flowsheet, the capital cost of the restart is estimated at
US$25.7M (including a 30%
contingency) and a permitting review concluded that a restart is
possible within 18 months of selecting a feedstock.
The Company is exploring various sources of feed for the
refinery, which could include cobalt concentrate from mining
operations, cobalt hydroxide and recycled battery materials from
North America. With some flowsheet
modifications, the refinery could produce a cobalt sulphate for the
lithium-ion battery market or cobalt metal for the North American
aerospace industry or other industrial applications. Current market
conditions indicate that pricing for cobalt sulphate is in line
with cobalt metal.
The Company has engaged SGS Canada, a leading firm in mineral
processing, metallurgy and process design, to test cobalt hydroxide
and other material using the existing flowsheet of the First Cobalt
Refinery and make recommendations on changes to the flowsheet to
accommodate refining of cobalt hydroxide feed. Test work includes
processing cobalt hydroxide using the First Cobalt Refinery
flowsheet to a finished cobalt sulphate product. The test work will
also examine the steps necessary to produce cobalt metal that would
be produced through electrowinning.
The Company is also engaging in discussions with companies
specializing in the marketing and sourcing of concentrates to
secure sources of ethically produced cobalt as feedstock for the
First Cobalt Refinery.
The Refinery historically produced cobalt carbonate, nickel
carbonate and silver precipitate which can be smelted to produce
doré. In order to produce cobalt sulphate, the flowsheet would be
modified to include a cobalt crystallization circuit.
A final decision on whether to put the Refinery back into
production has not been made at this time and any decision is
contingent on the outcome of the foregoing studies and discussions,
as well as the sourcing of viable feedstock.
Muckpile Sampling and Ore Sorting Programs
First Cobalt has sampled a
number of historic muckpiles in the Cobalt Camp to determine
whether this material could be concentrated and used as incremental
feedstock for the First Cobalt Refinery, depending on the
flowsheet.
In late 2017 and the first half of 2018, over 400 samples were
collected from a number of muckpiles on First Cobalt's patented
ground to study the potential for processing lower grade material
from historic mining operations. Samples were collected using an
excavator to create a cross section through each muckpile and taken
at various depths from within. In tandem with the sampling program,
three one-tonne samples were collected to test ore sorting
technology with the intent of increasing the head grade of feed
material.
Ore sorting techniques have been particularly effective
in increasing head grade without a significant loss of payable
minerals. Sampled muckpiles had an average grade ranging from 0.04%
to 0.10% Co and from 10 grams per tonne (gpt) to 60 gpt Ag before
ore sorting. After ore sorting, the average feed grade was
increased from 0.081% Co and 46 gpt Ag to an average of 0.575%
Co and 190 gpt Ag, representing a 7.1-times increase in cobalt
grade and 4.1-times increase of silver grade. The ore sorting
process provided an estimated 85% cobalt recovery and 58% silver
recovery. Average results are based on five assayed ore sorting
tests that were conducted in Austria during October
2018.
A total of 20 high priority muckpiles have been identified in
Cobalt North, where total tonnage is estimated at 190,000 to
290,000 tonnes depending on thickness assumptions. These sampled
muckpiles represent a portion of the muckpiles situated on First
Cobalt's properties and across the entire Cobalt Camp. Muckpiles in
Cobalt Central and Cobalt South have yet to be surveyed to the same
degree of confidence, however the majority of muckpiles are found
in Cobalt North, where most of the historic mining occurred.
Preliminary ore sorting tests indicate average weight recovery of
sorted material to be approximately 14%.
While testing of historic muckpiles in the Cobalt Camp remains
ongoing, and this historic material may in the future provide an
incremental source of feedstock to the Refinery, further work is
required and at this time the Company anticipates sourcing all
feedstock from third-party sources.
Quality Assurance and Quality Control
First Cobalt has implemented a
quality control program to comply with industry best practices for
sampling, chain of custody and analyses. Muckpile samples were
collected using an excavator to dig a cross section through each
muckpile. Samples were collected in ten-litre pails and were taken
at various depths from within the trench. Muckpiles for which
safety reasons precluded use of this procedure were similarly
sampled with a number of test pits. Blanks, duplicates and
standards are inserted at the processing sites as part of the QA/QC
program.
Muckpile samples were prepared at PolyMet Labs in Cobalt, Ontario and analyzed by Bureau Veritas
in Vancouver, British Columbia. At
PolyMet, samples were dried, weighed crushed to 85% passing -6
mesh, roll crushed to 85% passing -10 mesh, split 250 gram pulps,
then pulverized in a closed bowl ring pulverizer to 95% passing
-150 mesh. Prepared samples were shipped to Bureau Veritas where
they were analyzed by a 4-acid digestion for ICP analysis.
Run-of-muckpile samples for ore sorting tests were prepared and
analyzed by SGS Canada in Lakefield,
Ontario. The samples were crushed using a jaw crusher to
minus 2" (50 mm). The crushed material was then screened at ½"
(12.7 mm). Each fraction was separately blended and approximately
10 kg split out for assaying. Samples for assaying were crushed to
nominal 10 mesh and a subsample riffled and pulverized for
assaying.
Ore sorting tests were conducted by REDWAVE ROX Mineral Sorting
in Brodingberg, Austria. Sorted
streams were riffle split by REDWAVE and sent to ALS – OMAC
Laboratories Limited in Ireland
where the samples were pulverized for assaying.
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. The term "Competent Person" is not recognised by Canadian
securities regulatory authorities, and the term is used by the
Company with reference to the JORC Code, and to ensure compliance
with the ASX Listing Rules and applicable reporting requirements in
Australia.
About First Cobalt
First Cobalt a North American
pure-play cobalt company whose flagship asset is the Iron Creek
Cobalt Project in Idaho, USA,
which has Inferred mineral resources of 26.9 million tonnes grading
0.11% cobalt equivalent. The Company's other assets include 50
past-producing mines in the Canadian Cobalt Camp 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 Estimates of
Resources
Readers are cautioned that mineral resources are not economic
mineral reserves and that the economic viability of resources that
are not mineral reserves has not been demonstrated. The estimate of
mineral resources may be materially affected by geology,
environmental, permitting, legal, title, socio-political, marketing
or other relevant issues. The mineral resource estimate is
classified in accordance with the Canadian Institute of Mining,
Metallurgy and Petroleum's "2014 CIM Definition Standards on
Mineral Resources and Mineral Reserves" incorporated by reference
into NI 43-101. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of feasibility or pre-feasibility
studies or economic studies except for Preliminary Economic
Assessment as defined under NI 43-101. Readers are cautioned not to
assume that further work on the stated resources will lead to
mineral reserves that can be mined economically. An Inferred
Mineral Resource as defined by the CIM Standing Committee is "that
part of a Mineral Resource for which quantity and grade or quality
are estimated on the basis of limited geological evidence and
sampling. Geological evidence is sufficient to imply but not verify
geological and grade or quality continuity. An Inferred Mineral
Resource has a lower level of confidence than that applying to an
Indicated Mineral Resource and must not be converted to a Mineral
Reserve. It is reasonably expected that the majority of Inferred
Mineral Resources could be upgraded to Indicated Mineral Resources
with continued exploration."
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.
SOURCE First Cobalt Corp.