TORONTO, April 19, 2018 /CNW/ - First Cobalt Corp. (TSX-V:
FCC, ASX: FCC, OTCQB: FTSSF) (the "Company") today announces it has
initiated a study of the First Cobalt Refinery, located in the
Canadian Cobalt Camp, intended to help the Company estimate the
capital requirements for a future restart and expansion of the
Refinery.
Highlights
- First Cobalt is 100% owner of
the Refinery, which is the only fully permitted cobalt refinery in
North America capable of producing
battery materials
- Study will estimate the capital required to restart the
Refinery in its current configuration and under an expansion
scenario within the existing footprint
- Study will provide operating cost estimates for both the
current configuration and an expansion scenario
- Refinery could treat third-party material for a North American
supply of cobalt sulfate to the electric vehicle market
Trent Mell, President & Chief
Executive Officer, commented:
"The First Cobalt Refinery is a unique and strategic asset
that is fully permitted to process North American feedstock. As we
move forward with proposed acquisition of US Cobalt and ongoing
studies of early cash flow opportunities in the Cobalt Camp from
historic muckpile material, this Refinery study will drive us
closer to our goal of being a vertically integrated North American
cobalt company."
First Cobalt has initiated a
study of the First Cobalt Refinery to estimate the capital
requirements to restart the facility in its current configuration
and under an expansion scenario. The expansion scenario study will
estimate the additional capital requirements and increase in
throughput of an expanded facility within the current building
footprint. Operating cost estimates will be provided for both
scenarios.
The First Cobalt Refinery is a hydrometallurgical
cobalt-silver-nickel refinery located approximately five kilometres
east of Cobalt, Ontario. The
facility was commissioned in 1996 with a nominal throughput of
twelve tonnes per day. A second autoclave was later added to the
pressure oxidation circuit to double the throughput to 24 tonnes
per day but the second autoclave was never fully commissioned. The
current footprint includes an empty feed warehouse that once housed
a mill. The facility is located on a 40-acre property that can be
expanded to 120 acres with two settling ponds and an autoclave pond
(Image 1).
The flowsheet and timeline for a potential restart of the
Refinery has become a focus following the recently announced
friendly merger with US Cobalt Inc. (TSX-V: USCO, OTCQB: USCFF)
(see press release, March 14, 2018).
US Cobalt's primary asset is the
Iron Creek cobalt project in Idaho, which has a historic mineral resource
estimate (non-compliant with NI 43-101) of 1.3 million tons grading
0.59% cobalt and 0.3% copper. A 10,700 metre drill program was
recently completed at Iron Creek to confirm this historic estimate
and a current mineral resource estimate is expected during 2018. US
Cobalt's securityholders will vote
on the proposed transaction on May 17,
2018.
A 2012 report prepared for a previous owner by Hatch estimated
the replacement value of the First Cobalt Refinery at US$78 million, excluding the capital invested in
power lines and earthworks related to the tailings facility and
roads.
The facility is fully permitted for processing feed containing
elevated concentrations of arsenic, such as those from the Cobalt
Camp, the Idaho Cobalt Belt and elsewhere in North America. The Company believes that
permitting a similar facility in North
America today could take a significant investment of
time.
The ability of the Refinery to process materials containing
elevated arsenic and produce cobalt battery materials could de-risk
not only First Cobalt projects, but also other North American
cobalt projects.
The Refinery contains three circuits: a pressure oxidation
circuit, a solvent extraction circuit and a Merrill Crowe circuit. Feed containing arsenic
is first treated in the pressure oxidation circuit where arsenic is
combined with iron to create a stable iron arsenate called
scorodite. The Refinery permits allow scorodite to be disposed of
in its autoclave pond.
The Company has engaged Primero Group, an Australian engineering
firm with an office in Montréal, Québec, to conduct the desktop
study review. Primero's expertise spans several disciplines within
the resources industry and includes infrastructure development and
mineral processing, as well as hydrocarbon storage and gas
compression facilities. Results of the Refinery study are expected
in the second quarter.
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.
About First Cobalt
First Cobalt aims to create the
largest pure-play cobalt exploration and development company in the
world. The Company controls over 10,000 hectares of prospective
land covering over 50 historic mines as well as mineral processing
facilities in the Cobalt Camp in Ontario,
Canada. The First Cobalt Refinery is the only permitted
facility in North America capable
of producing cobalt battery materials.
First Cobalt seeks to build
shareholder value through new discovery, mineral processing and
growth opportunities, with a focus on North America.
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. In particular, forward-looking
information included in this news release includes, without
limitation, the anticipated closing date of the Transaction, the
receipt of final court approval and other regulatory approvals.
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
each of First Cobalt and US Cobalt, filed on SEDAR at
www.sedar.com. Although First Cobalt and US Cobalt believe 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 and US Cobalt disclaim 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
US 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 US 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. US 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. US Cobalt believes that the historical estimates
are relevant to continuing exploration on the Iron Creek
property.
SOURCE First Cobalt Corp.