TORONTO, June 19, 2018 /CNW/ - First Cobalt Corp. (TSX-V:
FCC; ASX: FCC; OTCQX: FTSSF) (the "Company") is pleased to announce
that drill results from the Iron Creek Project in Idaho, USA continue to extend cobalt
mineralization in the Waite Zone by an additional 50 metres to the
west as well as to surface. The Waite Zone lies south and parallel
to the historic No Name Zone. Mineralization has also been
intercepted beyond the footwall of the Waite Zone, providing new
targets for future drilling.
Highlights
- High grade intercepts occur within longer intervals of
mineralization including 0.52% Co and 1.10% Cu over 4.6
metres within 37.8 metres grading 0.12% Co and 0.41% Cu in the
Waite Zone
- Several mineralized intercepts were found in the footwall of
the Waite Zone, including 0.33% Co over 10.2 metres,
reflecting new mineralization that will be tested in follow up
drilling
- Drill results have extended the Waite Zone to surface and by an
additional 50 metres to the west for a total strike length of 520
metres
- Metallurgical study commenced to assess concentration methods
and resulting recoveries for cobalt and copper
Trent Mell, President & Chief
Executive Officer, commented:
"The outlook for the cobalt market remains strong even though
the market has taken a pause. Although lithium, cobalt and graphite
stocks are down over the past three months, assertions that cobalt
will soon be replaced in electric vehicles cannot be substantiated.
The growing EV market will underpin a well-supported view that
cobalt production will remain in a deficit position in the years
ahead.
These results show that the Waite Zone mineralization
contains strike length similar to the No Name Zone and likely
extends to surface. The Iron Creek Project results in Idaho have been very compelling and the
expanded program on our patented land package will allow us to
unlock value at an accelerated pace. First Cobalt has a strong
treasury and is well positioned as a vertically integrated North
American cobalt pure play."
The 2017 drilling was completed to confirm a historic estimate
(non-compliant with NI 43-101) of 1.3 million tons grading 0.59%
cobalt and 0.3% copper done in 1980 by Noranda Inc. That program
covered a 460 metre strike length, primarily in the No Name Zone,
and the results are the basis for a mineral resource estimate
expected to be completed by October of 2018. First Cobalt is now
undertaking a 70-hole, 30,000 metre drill program designed to
double the strike length of the cobalt-copper mineralized zone to
900 metres.
Results reported today were completed from underground, in the
western-most extent of Adit #2 (Figure 1) and specifically targeted
the lesser known Waite Zone, which did not form part of the
historic resource estimate. Each hole encountered significant
mineralization, further extending the drilled strike length and the
up-dip extension of cobalt mineralization and providing confidence
to continue drilling to the west.
Drilling continues to expand the total cobalt metal content and
size potential of the Iron Creek mineralization as indicated by
substantial true widths of cobalt mineralization.
Two of the holes successfully tested the up-dip extension of the
Waite Zone, which is now believed to come to surface in this area
(Figure 2). Lower grade mineralization was also intersected between
the No Name and Waite Zones.
Drill Results
Results demonstrate the continuity of the dip extension of the
Waite Zone (Figure 2). Cobalt mineralization occurs as semi-massive
and disseminated styles similar to what was drilled further east
and similar in style to the No Name Zone. The Waite Zone in this
area is relatively thick and is consistently mineralized containing
a few high grade cobalt values, up to 1.23% Co over 1.40m in IC18-05 (Table 1). Copper grades
within the Waite Zone in this area are also high, up to 3.66% Cu
over 0.3m in IC18-09, but not
always coincident with cobalt.
Drilling in the footwall to the Waite Zone has encountered other
intervals of cobalt mineralization. Intercepts of copper
mineralization have been drilled that had not previously been
known. Additional drilling has been done nearby and assay results
are pending.
Table 1. New Assay results for the Waite Zone
Hole ID
|
Mineralized
Zone
|
From
(m)
|
To
(m)
|
Width
(m)
|
Width
(ft)
|
True
Thickness
(m)
|
Cobalt
(%)
|
Copper
(%)
|
IC18-04
|
Waite
|
61.7
|
65.0
|
3.3
|
20.6
|
|
0.25
|
0.66
|
|
Within
|
18.3
|
68.0
|
49.7
|
120.5
|
36.7
|
0.10
|
0.31
|
IC18-05
|
Waite
|
73.0
|
77.6
|
4.6
|
15.1
|
|
0.52
|
1.10
|
|
Within
|
39.8
|
77.6
|
37.8
|
124.1
|
18.2
|
0.12
|
0.41
|
IC18-09
|
Waite
|
61.6
|
65.1
|
3.5
|
11.3
|
|
0.38
|
0.11
|
|
Within
|
38.4
|
65.1
|
26.7
|
87.5
|
22.1
|
0.23
|
0.17
|
New
|
83.4
|
93.6
|
10.2
|
33.4
|
8.7
|
0.33
|
0.03
|
Note: True thickness is estimated from 3D modelling of the zone
considering intersections and interpreted orientation of the
surrounding drill holes.
Previous results from drilling in this area have shown the dip
extension of the Waite Zone can be correlated to a depth
200m below Adit #2 (Figure 2). Grades
in this area are comparable to those found near Adit #1, where
drill density is much greater (Table 2).
Table 2. Previous drill results from this area
Hole ID
|
From
(m)
|
To
(m)
|
Width
(m)
|
Width
(ft)
|
Cobalt
(%)
|
Copper
(%)
|
IC18-01
|
58
|
64
|
5.6
|
18.5
|
0.64
|
0.07
|
IC17-30
|
177
|
180
|
3.0
|
10.0
|
0.48
|
0.39
|
IC18-03
|
110
|
115
|
4.3
|
14.2
|
0.47
|
0.02
|
IC17-24
|
315
|
318
|
3.2
|
10.6
|
0.39
|
0.00
|
IC17-28
|
137
|
143
|
5.3
|
17.4
|
0.33
|
0.06
|
IC18-02
|
52
|
55
|
3.4
|
11.0
|
0.29
|
0.39
|
On June 11, First Cobalt announced
a 30,000 metre, 70-hole program 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 will 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 and to date, the program has extended the known mineralization
to over 520 meters of strike. Assay results announced today are
aligned with the previous results (see US Cobalt press release
May 23, 2018 on www.sedar.com).
The Waite Zone is stratigraphically below the No Name Zone and
had not been extensively evaluated in the historic exploration
work.
Metallurgical Study
The Company also announces the commencement of a preliminary
metallurgical study at Iron Creek being conducted by McClelland
Laboratories, Inc. ("MLI") in Reno,
Nevada to determine optimal concentration methods for cobalt
and copper mineralization. The study is under the direction of
Jack McPartland, Metallurgist and
Vice President, Operations. Bulk samples were collected from
underground within Adit #1. Testing of various extraction methods
and measures of recoveries will determine which is ideal to
concentrate cobalt and copper.
MLI has been providing quality laboratory testing and consulting
services to the minerals industry for over 30 years, including
metallurgical, environmental, analytical testing and consulting
during all phases of project development, operation and
closure.
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.
The true thickness of the No Name Zone and the Waite Zone is
between 10m and 30m and dip steeply to the north, remaining open
at depth. Historic drilling, pre-1960, traced the No Name Zone for
over one kilometre of strike length.
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.
Quality Assurance and Quality Control
First Cobalt has implemented a quality control program to comply
with common industry best practices for sampling, chain of custody
and analyses. Blanks, duplicates and standards are inserted at the
core processing site as part of the QA/QC program. Samples are
prepared and analyzed by American Assay Laboratories (AAL) in
Sparks, Nevada. Over 15% of the
samples analyzed are control samples consisting of checks, blanks,
and duplicates inserted by the Company; in addition to the control
samples inserted by the lab. Drill core samples are 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, then analyzed by a 5 acid
digestion for ICP analysis. All samples have passed QA/QC
protocols.
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.