TORONTO, Aug. 2, 2022
/CNW/ - Electra Battery Materials Corporation (NASDAQ: ELBM)
(TSXV: ELBM) ("Electra" or the "Company") today provided an
update on its 2022 exploration program at its Ruby prospect,
located 1.5 kilometers from its primary Iron Creek cobalt-copper
deposit in the Idaho Cobalt Belt. Electra's exploration
program is a cornerstone of its strategy to onshore the electric
vehicle supply chain by identifying domestic sources of critical
minerals for the electric vehicle market.
Highlights
- A strong and open-ended anomaly at Ruby was defined by an
Induced Polarization (IP) survey, which measures the chargeability
of the subsurface to determine the presence of sulphide
minerals.
- Drilling on the eastern margin of the Ruby target area
intersected mineralization that is texturally similar to the Iron
Creek deposit. Additional drilling is planned to the west,
targeting the strongest part of the identified anomaly.
- Surface sampling, geophysical surveys and drilling completed to
date suggest that Ruby could be an important new mineralized cobalt
and copper target in proximity to Electra's Iron Creek
deposit.
- Drill samples have been sent for testing at a third-party
laboratory, with assay results expected before the end of Q3
2022.
"It is a testament to the Electra team that our maiden drill
campaign at Ruby intersected mineralization exactly where the
geophysical survey predicted it would be," said Trent Mell CEO of
Electra Battery Materials. "These are early days for this
target, but the similarities to our Iron Creek cobalt and copper
deposit validate our view that the underexplored Idaho Cobalt Belt
remains prospective for new discoveries. Idaho could play an important role in the
onshoring of the EV battery supply chain by providing a domestic
supply of cobalt in America."
The 2022 drill program was based on the results of a
7.6-kilometer pole-dipole 3D IP survey of the Ruby prospect. The
survey defined a strong chargeability anomaly with a 10 mV/V
contour open-ended on each side (see Figure 1). Stronger
chargeability zones exceeding 30 mV/V occur on the western edge of
the survey and remain open-ended, extending toward the Coiner Fault
system. The chargeability anomaly is spatially coincident with
cobalt mineralization sampled at surface, and 3D modeling indicates
it increases in thickness with depth.
Two drill holes have been completed for a total of 824 metres on
the eastern side of the target. Both holes intercepted strong zones
of pyrite mineralization spatially coincident with the upper edge
of the target zone. Additional drilling will move west and target
the strongest portion of the anomaly.
Electra previously sampled surface exposure of cobalt
mineralization at Ruby across a 295-metre strike extent, returning
several high-grade values, such as 10.7 metres at 0.24% cobalt
(including 1.5 metre at 0.48% cobalt) and 7.6 metres at 0.26%
cobalt (see October 29, 2019 press
release).
Based on bedrock mapping, Ruby may be a separate stratigraphic
unit or may be structurally offset from the Iron Creek mineralized
horizon by a north-south trending fault. Younger volcanic rocks
partially cover the target stratigraphy between Iron Creek and
Ruby.
Along with covering Ruby, a single 1.5 km line of pole-dipole IP
was completed on the Redcastle property approximately 1.2 km
southeast of Ruby. The Redcastle project covers similar
stratigraphy to Ruby and Iron Creek occurrences and is being
explored for additional zones of sulfide mineralization. The single
IP line did not identify any significant chargeability anomalies,
however, additional exploration is planned on the Redcastle
property. In 2021, Electra entered a joint venture on the 224
hectares Redcastle property with Phoenix Copper Ltd. (see
May 25, 2021 press release for terms
of JV).
About the Iron Creek
Project
Electra's Iron Creek Project is located in the Idaho Cobalt Belt
and is one of the few primary cobalt deposits in the world. The
Company completed 30,000 metres of drilling from 2017 to 2019
before pausing exploration to focus on developing its battery
materials park in Canada, which
will be commissioned in phases starting in Q4 2022.
Iron Creek is considered to be amenable to underground mining
extraction, which would result in a small footprint and minimize
environmental impact. Drilling has demonstrated multiple
mineralized horizons continuous along strike and down-dip. Thicker
zones of mineralization of up to 30 metres occur in the eastern
portions of the resource that also contain higher grades of
cobalt.
Iron Creek currently has an Indicated Resource of 2.2 million
tonnes at 0.32% cobalt equivalent (0.26% cobalt and 0.61% copper)
for 12.3 million pounds of contained cobalt and 29 million pounds
of contained copper, as well as an Inferred Resource of 2.7 million
tonnes at 0.28% cobalt equivalent (0.22% cobalt and 0.68% copper)
for an additional 12.7 million pounds of contained cobalt and 40
million pounds of contained copper. The resource estimate used a
0.18% cobalt equivalent cutoff grade.
Qualified Person
Statement
Dan Pace is a Registered
Member of the Society for Mining, Metallurgy & Exploration and
is the Qualified Person as defined by National Instrument 43-101
who has reviewed and approved the contents of this news
release. Mr. Pace is employed on a full-time basis as
Principal Geologist for Electra.
About Electra Battery
Materials
Electra is a processor of low-carbon, ethically-sourced battery
materials. Currently commissioning North
America's only cobalt sulfate refinery, Electra is executing
a multipronged strategy focused on onshoring the electric vehicle
supply chain. Keys to its strategy are integrating black mass
recycling and nickel sulfate production at Electra's refinery
located north of Toronto,
advancing Iron Creek, its cobalt-copper exploration-stage project
in the Idaho Cobalt Belt, and expanding cobalt sulfate processing
into Bécancour, Quebec. For more information visit
www.electrabmc.com.
Neither the 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 (CIM) "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 a 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. United
States investors are cautioned that CIM and NI 43-101
standards for resource classification and public disclosure differ
from the requirements of the U.S. Securities and Exchange
Commission (SEC) and resource information contained in this news
release may not be comparable to similar information disclosed by
domestic United States companies
subject to the SEC's reporting and disclosure requirements.
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 Electra, filed on SEDAR at
www.sedar.com. Although Electra 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, Electra disclaims any intention or obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
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SOURCE Electra Battery Materials Corporation