First Cobalt Provides Update on Woods Extension Drilling
TORONTO, ON — (April 4, 2018) – First Cobalt Corp. (TSX-V: FCC, ASX: FCC, OTCQB: FTSSF) (the “Company” - https://www.youtube.com/watch?v=LY4qXCoWstE&t=3s) today announces additional drill results from the Woods Extension Zone of Cobalt South in the Canadian Cobalt Camp. Cobalt mineralization has been identified in breccia zones as well as faults, reflecting a complex structural setting that warrants further drilling.
- Assay results from two holes confirm cobalt mineralization extends over a broader area, including:
- 0.47% Co and 0.50% Cu over 0.65m in FCC-18-0015
- 0.77% Co and 2.67% Ni over 0.30m in FCC-18-0020
- Cobalt is found as two different styles of mineralization in each hole: breccia-style dominated by pyrite in drill widths up to 25m, and vein-style within an interpreted fault structure
- Cobalt mineralization encountered over 250m north of the historic Frontier Mine workings in an area never previously drilled
- Follow up work continues including downhole geophysical surveys and televiewer imaging to determine a possible orientation of the breccia zone and faults. Additional drilling is planned later in the year
“We remain encouraged by the cobalt potential of the Woods Extension Zone. Broad breccia areas have not been seen previously at either the Frontier or Keeley Mines and new fault zones continue to be found. We have confirmed cobalt occurs in two different structures at relatively shallow depths that may extend to surface. The key objective of the 2018 exploration program is to identify potential targets in the Cobalt Camp that could be amenable to open pit mining.”
Assay results from the two most recent holes confirm that cobalt mineralization extends over a broader area than previously known within the Woods Extension Zone (Table 1). In FCC-18-0015, cobalt mineralization occurs within a breccia zone with pyrite, while in FCC-18-0020, cobalt veining is associated with an interpreted fault. Both intersections reflect a complex structural setting hosting cobalt as well as silver, nickel and copper which will require further work.
In early 2018, 1,436 metres of diamond drilling were completed across seven holes to explore cobalt mineralization found north of the Frontier Mine workings in the Woods Extension Zone. In 2017 several carbonate veins were intersected suggesting either a broad deformation zone had developed or that the Woods and Watson Veins are not linear as historical records indicated. The Woods and Watson Vein systems were historically the most prolific producers in Cobalt South, accounting for over 80% of the production in this area of the Cobalt Camp. Newly identified cobalt-rich veins have been associated with both the Woods and Watson Veins as well as a new vein found between these two structures. Surface mapping interpreted these structures to trend in a north-west orientation.
To follow up on these results, in 2018 an east-west fence of four holes was drilled more than 200m to the north of the 2017 holes (Figure 1). An additional three holes were also drilled near the 2017 drill holes to test for an interpreted east-west fault previously thought to terminate the Woods and Watson Veins. The new cobalt intersections reported here reflect the identification of mineralization over 250m north of the underground workings of the Frontier Mine. Copper and nickel associated with cobalt were previously intersected near Frontier Mine, suggesting a similar setting may exist in both areas.
Figure 1. Bedrock geology and location of drilling stations. Silver-cobalt veins are compiled from historic maps and locations should not be considered exact.
Drill hole FCC-18-0015 is the western-most hole of the fence, intersecting a 25m zone of chlorite-epidote altered and brecciated mafic volcanic rocks. Pyrite occurs as veins and within the matrix, infilling the brecciated rocks. Cobalt mineralization occurs in two intervals within the zone where chloritic alteration and shearing have developed. Discrete cobalt minerals and calcite veins are not visible and assumed to be finely disseminated. Throughout the breccia zone disseminated chalcopyrite occurs with pyrite and in the altered wallrocks. The orientation of this mineralization is not confirmed but may represent an offset version of the Woods Vein or may be part of another north trending structure, the Beaver Lake Vein, known to contain silver-rich mineralization.
Drill hole FCC-18-0020 was drilled northward to test for the presence of an east-west fault historically considered to terminate the Woods and Watson Veins. Overall the volcanic rocks within the drill hole are altered, specifically at 110m downhole where a 10m interval of sheared and chloritized rocks is considered to coincide with the east-west fault. Within this interval cobalt minerals occur within a discrete calcite vein. Pyrite and arsenopyrite occur over a three metre wide halo adjacent to the vein. Nickel with cobalt mineralization have been previously reported in a hole approximately 50m south of this intersection (January 10, 2018).
Table 1: Highlights of the 2018 Woods Extension Zone assay results
Drilling lengths are as recorded downhole and do not necessarily represent true widths of mineralization as multiple vein orientations have been intersected.
Follow up work to this drill program has included downhole geophysical surveys and televiewer imaging of drill hole FCC-18-0015. Magnetic intensity, resistivity, natural gamma radiation and chargeability were measured to characterize the breccia zone and cobalt mineralization to determine if ground geophysical surveys can be effectively used. The televiewer images will be integrated with the existing geological log to determine a possible orientation of the breccia zone. Detailed mapping in outcrops is possible in the summer to determine if an expression of this zone can be found at surface.
Woods Extension Zone
The Woods Extension Zone was identified from assay results at the northern extent of the Frontier Mine. Early assay results from the Frontier Mine included an intersection of 0.83% Co and 30 g/t Ag over 0.48 metres (November 2, 2017), which was the first indication of a possible extension of the Woods Vein system.
Most cobalt-rich veins intersected demonstrate that mineralization extends outside of the silver-bearing veins. A new cobalt-nickel vein was found between the Woods and Watson Veins, grading 0.57% Co and 1.40% Ni over 0.40m (January 10, 2018), suggesting a network may exist where faults and folds converge. The highest grade cobalt veins occur at the north end of the Frontier Mine, specifically along the Watson Vein.
Quality Assurance and Quality Control
First Cobalt has implemented a quality control program to comply with common industry best practices for sampling and analysis. Samples are collected from drill core from a range of 30 to 100cm length. Half-core samples are submitted for analysis. Standards and blanks are inserted every 20 samples. Duplicates are made from quarter core splits every 20 samples. Geochemical data were received from SGS Canada in Lakefield, Ontario, Canada. No QA/QC issues have been noted. SGS has used a sodium-peroxide fusion and ICP finish for analyses on all samples. Where applicable, over-range (>1%) Co, Ni, Cu, Zn, and Pb are determined by a separate fusion and ICP finish. High silver values (>1,000 g/t) are determined by gravimetric separation and fire assay finish.
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.
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 March 14, 2018, the Company proposed a friendly, all-share acquisition of US Cobalt Inc. for its Iron Creek Project in Idaho, U.S. The transaction remains subject to shareholder and regulatory approvals and other closing conditions. This transaction is intended to further enhance First Cobalt’s position as a leading pure-play North American cobalt company.
On behalf of First Cobalt Corp.
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". In particular, forward-looking information included in this release includes, without limitation, (i) assumptions and expectations with regard to the plan of arrangement transaction whereby First Cobalt will acquire all of the issued and outstanding shares of US Cobalt Inc. (“USCO”), (ii) the future prospects of the combined company, including the resource potential of the Iron Creek Cobalt Project, and (iii) the opportunity to leverage the First Cobalt refinery. 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 include the reliability of the historical data referenced in this press release and risks set out in First Cobalt’s public documents, including in each management discussion and analysis, 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.