TORONTO, June 24, 2021 /CNW/ - First Cobalt
Corp. (TSXV: FCC) (OTCQX: FTSSF) (the "Company")
today announced the commencement of a $2.5
million exploration program at its wholly-owned Iron Creek
cobalt-copper project in the United
States. The Company's objective is to double the size of its
resource over the next two drill seasons as interest grows in a
U.S. domestic cobalt supply to support a growing electric vehicle
market.
Located in the Idaho Cobalt Belt, the Iron Creek Project is one
of the few primary cobalt deposits in the world. To date, cobalt
and copper resources have been defined by drilling over a 900-metre
strike extent and the deposit remains open to the east and west
along strike as well as down-dip. The Idaho Cobalt Belt contains
the largest primary resources of cobalt in the United States according to the U.S.
Geological Survey.
HIGHLIGHTS
- $2.5 million budget will include
a total of 4,500 metres of drilling
- Primary focus of drilling will be to test the western and
eastern extensions to the Iron Creek deposit identified in
IP-Resistivity surveys and potentially other targets on the
property
- Drilling will also test geophysical anomalies similar to the
signature of the Iron Creek deposit to identify new zones of
mineralization
- Field work now underway consists of bedrock geological mapping
as well as geochemical surveys specifically covering the recently
acquired West Fork Property
- Geophysical surveys are planned covering the Ruby Zone area and
eastward to the Redcastle Property to identify new drill
targets
"Cobalt demand for electric vehicles is projected to increase
more than 250% by 2025 and Idaho
is believed to be America's best opportunity to develop a domestic
supply of this critical mineral," said President and CEO,
Trent Mell. "With our Canadian
refinery expansion underway, we are turning our attention to our
flagship mineral project in Idaho.
Drilling aims to extend the cobalt and copper mineralization at
Iron Creek and test for new mineralization at nearby targets that
could result in additional resources on the property.
"The Biden Administration has made several announcements that
support domestic mining of critical minerals such as cobalt in
order to secure and shorten America's supply chains. First Cobalt
and our Idaho mineral assets are
extremely well positioned to support the Administration's ambitions
in these areas. Several new initiatives have been declared to
reduce permitting timelines by prioritizing mining-related
applications and allocated funding toward innovative mining
projects that reduce environmental impacts. Our Iron Creek assets
can help the United States on two
of its most important policy files: reducing climate change and
securing critical minerals for American industry."
Drill Targets
Drilling will commence at the eastern portion of the deposit
along strike of some of the highest grade cobalt intercepts:
0.45% Co and 2.07% Cu over 9.4m (ICS18-02) as well as 0.44%
Co and 0.19% Cu over 14.7m (ICS18-05).
The primary targets for the drilling program have been
interpreted from chargeability-resistivity anomalies on strike with
the Iron Creek cobalt-copper deposit (Figure 1). High chargeability
zones east of the Iron Creek deposit are interpreted to reflect
extensions of the mineralization that can be traced over
300m in strike length. Similarly, at
the western extent of the Iron Creek deposit, a high chargeability
anomaly may represent mineralization along strike that has been
offset along north-south trending structures along the boundaries
of the Challis Volcanic cover rocks.
Drill holes planned at the Ruby Zone 1.5 km to the south of Iron
Creek will target the extension of cobalt-copper mineralization
exposed at surface. Mineralization is similar to the Iron Creek
deposit, occurring as cobalt-rich pyrite and chalcopyrite. The Ruby
Zone mineralization exposed at surface has not previously been
drilled. In addition to drilling known mineralized areas,
geophysical surveys are planned in the Ruby Zone area to track the
potential eastern extension of mineralization toward the Redcastle
Property.
Iron Creek Project
Iron Creek is a high grade primary cobalt deposit occurring
within patented land 100% owned by First Cobalt in the United States. The larger property
consists of mining patents and exploration claims (Figure 2).
Historic underground development at Iron Creek includes 600 metres
of drifting from three adits. An all-weather road connects the
property to a state highway and the nearby towns of Challis and Salmon. Significant infrastructure is in place
to support multiple drills and underground activity. The setting
for mineralization is well suited for underground mining
development. Iron Creek currently has an Indicated Resource of 2.2
million tonnes at 0.32% cobalt equivalent as well as an Inferred
Resource of 2.7 million tonnes at 0.28% cobalt equivalent:
Category
|
Tonnes
|
CoEq
(%)
|
Cobalt
(%)
|
Cobalt
(lbs)
|
Copper
(%)
|
Copper
(lbs)
|
Indicated
|
2,154,000
|
0.32
|
0.26
|
12,250,000
|
0.61
|
29,058,000
|
Inferred
|
2,676,000
|
0.28
|
0.22
|
12,685,000
|
0.68
|
39,943,000
|
1.
|
Mineral Resources,
which are not Mineral Reserves, do not have demonstrated economic
viability. The Inferred Mineral Resource in this estimate has a
lower level of confidence than that applied to an Indicated Mineral
Resource and must not be converted to a Mineral Reserve. It is
reasonably expected that the majority of the Inferred Mineral
Resource could be upgraded to an Indicated Mineral Resource with
continued exploration. The Mineral Resources in this press release
were estimated using the Canadian Institute of Mining, Metallurgy
and Petroleum (CIM), CIM Standards on Mineral Resources and
Reserves, Definitions and Guidelines prepared by the CIM Standing
Committee on Reserve Definitions and adopted by CIM
Council.
|
2.
|
Grade cutoff for
both Indicated and Inferred Resources is 0.18% Co Eq calculated as
%Co + %Cu÷10. The cutoff grade utilized in the above table was
derived from US$30/lb Co and US$3/lb Cu, consistent with the 2018
resource estimate. Mineral Resources reported in the Technical
Report are in Imperial Tons.
|
3.
|
Three types of
statistical estimates were completed: nearest neighbour, inverse
distance, and kriging. Each method was run several times in order
to determine sensitivity to estimation parameters as well as
optimize the estimation parameters. Results using the inverse
distance estimate are reported in Table 1.
|
4.
|
Block size
employed of 10ft along strike, 5ft across, and 10ft high reflect
assumed underground mining extraction dimensions.
|
To date, drilling has outlined the strike extent of
mineralization to over 900 metres and down-dip to over 650 metres.
Mineralization remains open along strike and down-dip, suggesting
strong potential for significant future resource growth. Thick
mineralized zones of up to 30 metres of true thickness reflect
broad stratabound lithological controls.
Figure 1. Bedrock geology map outlining the First Cobalt
property limit and drilled projection of cobalt-copper
resources.
Iron Creek mineralization occurs as lenses and pods of pyrite,
the dominant phase hosting cobalt, that are primarily concordant to
the sedimentary layering in the host rocks. Chalcopyrite, the only
copper mineral phase, is disseminated and also occurs as stringers
cutting pyrite mineralization within the zone of
mineralization.
The host rocks to mineralization are a finely inter-bedded
sequence of siltstone and argillite with intermittent, less than
30cm thick, quartzite layers. Ripple and dune sedimentary
structures are well-preserved throughout the mineralized sequence.
A higher proportion of quartzite layers have been mapped above and
below the mineralized zone at surface marking the stratigraphic
hangingwall and footwall to mineralization.
Property Scale Opportunities
Iron Creek is one of many cobalt-copper resources and prospects
within the Idaho Cobalt Belt. Mineralization-style throughout the
Belt is considered to be stratabound meta-sedimentary rock hosted.
The United States Geological Survey deems these resources in
Idaho to be strategically
important as a domestic supply of cobalt.
The Ruby Zone is located 1.5 km to the south of the known
resource area at Iron Creek (Figure 1). Surface samples were
collected along 146 metres of strike to test the metal content of
mineralization and to examine the nature of the host rocks. In
total, exposed cobalt-copper mineralization is visible at surface
over a 295-metre strike extent. Ninety-six discontinuous samples
were collected and assay results returned multiple mineralized
intervals, including 10.7m of
0.24% Co, including 1.5m of 0.48%
Co, and 7.6m of 0.26% Co
in a similar setting to Iron Creek (see October 30, 2019 press release).
Figure 2. Interpretation of Idaho Property geophysical
results overlain on the bedrock geology. Coloured contour image of
chargeability represents processed values at 100 metres depth below
surface, but modelling extends to 400m. Numbers represent chargeability anomalies
described in press release issued 23-02-2021.
Qualified 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 employed as Vice President, Exploration for First
Cobalt.
About First Cobalt
First Cobalt's mission is to be the most sustainable producer of
battery materials. The Company owns North
America's only permitted cobalt refinery, a critical asset
in the development and manufacturing of batteries for electric
vehicles. First Cobalt also owns the Iron Creek cobalt-copper
project in Idaho, USA as well as
several significant cobalt and silver properties in the Canadian
Cobalt Camp.
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.
Cautionary Note to Investors - Resource
Estimates
In accordance with applicable Canadian securities regulatory
requirements, all mineral resource estimates of the Company
disclosed or incorporated by reference in this news release have
been prepared in accordance with Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI
43-101"), classified in accordance with Canadian Institute of
Mining Metallurgy and Petroleum's "CIM Standards on Mineral
Resources and Reserves Definitions and Guidelines" (the "CIM
Guidelines").
The Company uses the terms "mineral resources", and "inferred
mineral resources". While those terms are recognized by Canadian
securities regulatory authorities, they are not recognized by the
United States Securities and Exchange Commission (the "SEC") and
the SEC does not permit U.S. companies to disclose resources in
their filings with the SEC. Pursuant to the CIM Guidelines, mineral
resources have a higher degree of uncertainty than mineral reserves
as to their existence as well as their economic and legal
feasibility. Inferred mineral resources, when compared with
measured or indicated mineral resources, have the least certainty
as to their existence, however, it is reasonable to expect that the
majority of inferred mineral resources could be upgraded to
indicated mineral resources with continued exploration. Pursuant to
NI 43-101, inferred mineral resources may not form the basis of any
economic analysis, including any feasibility study. Accordingly,
readers are cautioned not to assume that all or any part of a
mineral resource exists, will ever be converted into a mineral
reserve, or is or will ever be economically or legally mineable or
recovered.
SOURCE First Cobalt Corp.