TORONTO, Aug. 6, 2020 /CNW/ - First Cobalt Corp.
(TSXV: FCC) (OTCQX: FTSSF) (the "Company") today announced
that it is undertaking an internal review of its silver projects in
Ontario, Canada, with a view
towards value creation for shareholders by potentially spinning
out, divesting, or joint-venturing these non-core assets in what is
a greatly improved silver market.
HIGHLIGHTS
- First Cobalt holds the largest
land package in the historical silver mining camp of Cobalt, Ontario, which contains more than 50
past-producing mines, including some of the region's largest
high-grade silver producers
- New silver mineralization identified in a district that
produced over 600 million ounces of silver, with peak production
from 1919-1931
- Strong silver market has increased interest in First Cobalt's
Canadian silver assets, where the Company drilled many high-grade
intercepts, including:
-
- 1,050 g/t Ag and 0.20% Co over 3.5m at Crown Reserve
- 820 g/t Ag and 0.45% Co over 3.6m at Kerr
- 686 g/t Ag and 0.37% Co over 4.3m at Kerr
- 328 g/t Ag and 0.84% Co over 2.5m
at Kerr
- 169 g/t Ag and 0.27% Co over 4.1m
at Kerr #2
- 132 g/t Ag and 0.03% Co over 8.0m
at Drummond
- 515 g/t Ag and 0.61% Co over 2.2m
at Drummond
- 451 g/t Ag and 0.1% Co over 2.0m
at Drummond
- 785 g/t Ag over 1.3m at Keeley
South
- 106 g/t Ag over 13.7m at
Keeley
- Mineralized zones are relatively shallow, typically occurring
less than 150 metres from surface
Trent Mell, First Cobalt
President & CEO, commented:
Silver prices have more than
doubled from their March lows and are up more than 65%
year-over-year due to investor interest in precious metals. We have
several high-grade silver targets that are not receiving value in
our asset portfolio given our focus on cobalt. The Cobalt Camp
includes some of the highest-grade historic silver mines in
Canada and First Cobalt has
demonstrated that potential for new silver discoveries exists
beyond historically mined areas.
Due to unsolicited expressions
of interest, we have started a review of non-core silver assets.
The Kerr Lake area is a prime
example given that First Cobalt has combined eight adjacent
historic mines that produced 50 million ounces more than 60 years
ago. We may seek to divest of silver-rich assets or joint venture
them if terms are attractive.
In light of a strong silver market, the Company has received
inquiries about its silver assets and management has commenced a
review of opportunities to create value from non-core portfolio
holdings.
In 2017, First Cobalt consolidated an extensive land package
totaling more than 10,000 hectares of patented land and mineral
claims in the Cobalt Camp in Ontario,
Canada that includes 50 past producing mines. The Company
completed a $10 million exploration
program including historic data compilation, bedrock mapping,
prospecting, geophysical surveys and more than 30,000 metres of
drilling across 14 separate sites (Figure 1). In many locations,
high grade silver was intersected but not followed up due to a
focus on targets with higher cobalt mineralization.
First Cobalt had some of its
best silver intercepts in the Kerr
Lake area, which encompasses eight historic silver mines:
Crown Reserve, Kerr Lake, Lawson,
Drummond, Conisil, Hargrave,
Silver Leaf, and Bailey. These mines produced over 50 million
ounces of silver and 900,000 pounds of cobalt, mainly between 1905
to 1950. The deepest shaft was less than 200 metres.
Nearby, Silverfields was mined by Teck until 1989 to a depth of
300 metres, producing over 17 million ounces of silver,
demonstrating the depth potential to some mineralized systems.
First Cobalt developed drill
targets using its proprietary 3D geological model based on digital
compilation of historic mine workings, integrated with exploration
drilling and surface bedrock geology maps for the entire
Kerr Lake and Silverfields areas.
During recent drilling, the Company identified broad silver
mineralization trends across Crown Reserve, Kerr and Drummond as well as a new mineralized trend
named Kerr #2.
The Kerr Lake-Crown Reserve trend occurs as a network of
closely-spaced veins in various orientations over a 500 metre
strike extent. Mineralization is at or near surface with two
dominant mineralization trends developed along a major structural
corridor. Drilling at Crown Reserve and Kerr intersected unmined
vein mineralization beyond historic underground workings. Several
holes were drilled at Drummond
revealing flat-lying silver and cobalt mineralization over a 300
metre by 200 metre tabular-shaped area, unmined due to the
relatively high cobalt content.
The Kerr #2 trend is 400 metres south and roughly parallel to
the Kerr Lake-Crown Reserve trend. This mineralized zone was
previously unknown and extends for more than 350 metres. The zone
appears to be a continuous polymetallic network of veins and
disseminated mineralization where silver is dominant and is
associated with cobalt, copper, lead and zinc. Results demonstrate
an ideal structural setting for the development of a closely-spaced
vein network in the Kerr Lake
area.
In the southern portion of the Cobalt Camp, new zones of silver
mineralization were also intersected outside of the historic
Frontier and Keeley mines that produced over 19 million ounces of
silver. New veins 200 metres west of the Keeley Mine were
discovered at an area known as Keeley South, which were not
followed down-dip to where vein systems are typically better
developed. Near the margins of the Keeley Mine workings, a series
of small veins and fractures contain silver that were not
mined.
The central portion of the First Cobalt land package still
remains relatively unexplored and recent work has identified
specific areas that appear favourable for undiscovered silver and
cobalt resources.
In light of these results, follow-up exploration is warranted to
expand the silver potential in these areas. The Cobalt Camp was
primarily mined for silver from 1904 to 1989, with peak production
occurring from 1919-1931. Over 600 million ounces of silver and 50
million pounds of cobalt were produced from approximately 104
different mining operations.
Figure 1. First Cobalt
property in proximity to the town of Cobalt (north) and the former town of Silver
Centre (south), as well as rail, regional highway, and the First
Cobalt Refinery. Place names refer to areas recently explored and
targeted by drilling.
Quality Assurance and Quality Control
Drilling lengths are as recorded downhole and do not necessarily
represent true widths of mineralization as multiple vein
orientations have been intersected. For a table of drill hole
locations and assay results to date, visit
https://www.firstcobalt.com/_resources/pdf/Cobalt-ON-Silver-Assays.pdf.
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. First Cobalt utilizes
high quality laboratory services from AGAT Laboratories in
Mississauga, Ontario, Canada, ALS
Laboratory in Vancouver, BC, and
SGS Minerals Lab in Lakefield,
Ontario. All results reported have passed QA/QC protocols.
Total digestion and ICP finish are used for analyses on all
samples. High silver values (>20 g/t) are determined by a
separate acid digestion and ICP finish.
Qualified Person Statement
The information in this release was reviewed and prepared under
the direction of Dr. Frank
Santaguida, P.Geo., Vice President of Exploration for First
Cobalt, who is a qualified person as defined by National
Instruments 43-101.
About First Cobalt
First Cobalt owns North America's only permitted cobalt
refinery. Cobalt refining is a
critical component in the development and manufacturing of
batteries for electric vehicles and forms a foundational piece of
the next generation of the North American auto sector and other
electrified consumer and industrial applications. First
Cobalt also owns a cobalt project
in the United States and controls
significant silver and cobalt assets in the Canadian Cobalt Camp,
including more than 50 past producing mines.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
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 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 timeframes 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.
SOURCE First Cobalt Corp.