HIGHLIGHTS
- Indicated Resource of 2.2 million tonnes at 0.32% cobalt equivalent (0.26% cobalt and 0.61% copper) for 12.3 million pounds of contained cobalt and Inferred Resource of 2.7 million tonnes at 0.28% cobalt equivalent (0.22% cobalt and 0.68% copper) for an additional 12.7 million pounds of contained cobalt
- Infill drilling and limited step-out drilling has upgraded 49% of the tonnes from the 2018 maiden Inferred resource estimate to Indicated resources while tonnage has increased by 10%
- Drilling has outlined the strike extent of mineralization to over 900 metres and down-dip to over 650 metres and mineralization remains open along strike and down-dip, suggesting strong potential for significant future resource growth
- Upgrading the resource to a higher confidence level did not result in a decrease in the resource grade, highlighting the strong continuity of mineralization
- Thick mineralized zones of up to 30 metres of true thickness reflect broad stratabound lithological controls; distinction between the No Name and Waite zones is no longer used
Resource Estimate
Category | Tonnes | CoEq | Cobalt | Cobalt | Copper | Copper |
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. |
2. | Grade cutoff for both Indicated and Inferred Resources is 0.18% Co Eq calculated as %Co + %Cu÷10 |
3. | The cutoff grade utilized in the above table was derived from |
4. | 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. |
5. | Block size employed of 10ft along strike, 5ft across, and 10ft high reflect assumed underground mining extraction dimensions |
6. | Mineral Resources reported in the Technical Report in Imperial Tons |
"Results of the infill drilling campaign exceeded our expectations and confirms that we have a continuous deposit. Future work will include drilling along strike and at depth to add tonnes as well as geophysical surveys to understand the potential of other nearby targets, including the
In 2020, our primary focus will be to recommission the
Overview of Results
The most recent drill campaign and interpretation of results has led to a new cobalt-copper model containing both Indicated and Inferred Resources at Iron Creek considered to be amenable to underground mining extraction (Figure 1). Drilling was successful demonstrating a single mineralized horizon continuous along strike and down-dip.
Thicker zones of mineralization occur in the eastern and western portions of the resource that also contain higher grades of cobalt and copper (Figure 2). Drilling in the central portion of the resource showed thickness of mineralization is consistent rather than thinned as was shown in historic resource models. The previous mineralization names
As the cobalt market began to show signs of short-term weakness, the Company chose to focus on infill drilling which was more cost effective given that several holes could be drilled from a single drill station. Several drill stations were nonetheless constructed for step-out drilling along strike and these were successful at intersecting cobalt-copper mineralization without closing off future strike potential.
A total of 49% of the maiden resource is now in the Indicated category and contained cobalt increased by 12%. Compared to many other base metal deposits, it is notable that the resource grade did not decrease as the resource was drilled on a tighter spacing, providing confidence in the continuity of mineralization over large widths.
An extensive re-evaluation of drill core found that 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. Spatially, cobalt and copper geochemical results do not correlate due to this geological relationship. As a result, cobalt and copper domains were modelled separately.
The deepest drill hole completed in the latest program, 610m from surface, has shown mineralization extends beyond 600m down dip providing targets for further drilling.
Longer drill holes from the stratigraphic hangingwall have consistently intersected a thick (over 75m) bedded siltite unit providing a marker contact to stratigraphy. Mineralization is mainly associated with the occurrence of quartzite layers interbedded with siltite. Drill holes intersecting the metasedimentary sequence below mineralization show quartzite layers are sparse and a siltite unit containing siderite porphyroblasts locally marks the footwall.
Surface holes at the western portion of the resource confirmed the extension and continuity of higher-grade copper mineralization, greater than 0.75% (Figure 3). Chalcopyrite stringers are also found in the stratigraphic hangingwall that represent the discordant nature of copper mineralization and may be targeted in future exploration programs.
Comparison to the 2018 Resource Model
A maiden resource estimate release in
The 2018 report favoured a base mining scenario of combined open pit and underground excavation. The 2018 report considered lower-grade cobalt-copper mineralization near surface for potential open pit mining methods. This updated report considers underground extraction may be more effective since the deeper drilling has shown mineralized extensions down-dip and remain open for further exploration.
A cutoff grade of 0.18% CoEq was considered appropriate for an underground scenario in the 2018 report and is also used in the current report, so a direct comparison between the resource estimates can be made.
Mineral Resource Estimation Methodology
The resource estimate was prepared in accordance with the
The updated Mineral Resource estimate is based on geological and structural data from 105 diamond drill holes for a total of 28,563 metres and approximately 21,500 geochemical samples completed by FCC between 2017 and 2019 (Figure 1). All data used for the estimation were generated by
Technical and economic factors likely to influence the "reasonable prospects for eventual economic extraction" were evaluated using the best judgement of the Qualified Person. Potential for underground mining was assessed by initially running stope optimizations using mining costs, processing costs, and anticipated metallurgical recoveries for similar size operations in the western
The effective date of the report is
Recommendations
Infrastructure constructed for the 2018-19 resource drilling program is suitable for new drilling stations to test extensions of the Iron Creek cobalt-copper mineralization minimizing cost of the follow-up program.
Surface mineralization has been identified at the Ruby prospect approximately 1.5km from the Iron Creek resource (see
Downhole electromagnetic geophysical surveys have indicated both cobalt and copper mineralization are relatively conductive and may be detected by ground or airborne techniques. Follow-up surveys are planned to optimize drill hole targeting along strike of Iron Creek and elsewhere on the property.
A systematic surface mapping and prospecting program is also recommended based on the new understanding of the lithological controls on the Iron Creek mineralization. Regional structures are known to exist on the property, but the controls on possible mineralization extensions to Iron Creek and other surface cobalt-copper prospects require additional work.
Baseline environmental studies initiated in 2017 will progress to facilitate future exploration programs as well as provide data for mine permitting. Further metallurgical studies to optimize cobalt extraction are also being considered.
First Cobalt Idaho Property
Iron Creek is located within
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.
Qualified Person Statement
The technical content of this press release that relates to the resource estimate has been reviewed and approved by
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On behalf of
President & Chief Executive Officer
Neither the
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
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
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
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