VANCOUVER, Dec. 18, 2017 /PRNewswire/ - eCobalt Solutions Inc. (TSX: ECS; OTCQX: ECSIF; Frankfurt: ECO) ("eCobalt" or the "Company") is reporting receipt of assays for the first two of three completed resource definition diamond drill holes which confirm intercepts above the current resource grade cut-off drilled on the Company's Idaho Cobalt Project ("ICP") located near Salmon, Idaho. These drill holes were recommended by Micon International Ltd. ("Micon") with the goal of upgrading a portion of inferred resources to indicated resources for inclusion in an updated feasibility study with optimized level mine plans and production schedules.
Mr. Paul Farquharson, President and C.E.O. of the Company commented: "The continuation of positive results of our 2017 drilling program further demonstrates the strength and continuity of the Company's ICP resource. The demand for cobalt continues to grow – automotive companies such as Volkswagen and BMW have recently announced their intent to source cobalt from the producers themselves to secure future supply. Major cobalt producers such as Glencore PLC recently announced ramping up cobalt production - but even doubling their current cobalt production would not meet expected electric vehicle demand. World mine production of cobalt in 2016 was estimated to be 123,000 tonnes. Glencore estimated that at least 285,000 tonnes of additional cobalt production would be required to make 30 percent of new vehicles electric by 2030."
Mineral Resource and Reserve Optimization
The Company has received assays for the second hole of a completed three hole, 5,000-foot drill program on schedule. Results of the second completed hole identified resource grade (>0.25% Cobalt) intercepts in four lenses comprising the Ram resource. Specifically;
From 1,238.0 feet to 1,244.0 feet, a 6 foot intercept @ 0.26% Co, 2.1% Cu
From 1,251.4 feet to 1,257.4 feet, a 6.0 foot intercept @ 0.37% Co, 0.4% Cu
From 1,298.0 feet to 1,305.6 feet, a 7.6 foot intercept @ 0.38% Co, 0.8% Cu
From 1,349.7 feet to 1,373.1 feet, a 23.4 foot intercept @ 0.56% Co, 1.6% Cu
These results build on the previously reported results from the first hole completed in 2017 which encountered the following three mineralized lenses exceeding cut off grades, with gold results included:
From 1,260.9 feet to 1,266.9 feet, a 6.0 foot intercept @ 0.40% Co, 0.3% Cu, 0.2 gpt Au
From 1,276.0 feet to 1,282.0 feet, a 6.0 foot intercept @ 0.44% Co, 1.6% Cu, 0.8 gpt Au
From 1,311.4 feet to 1,327.4 feet, a 16.0 foot intercept @ 0.51% Co, 1.8% Cu, 0.7 gpt Au
An additional completed hole, pending assay results, also intersected mineralized zones as anticipated in the September 27, 2017 Feasibility Study ("FS") resource model. Based on core logging, and pending assay results, this drill program is expected to have a positive impact on the project's resource model. The Company has engaged Micon to produce an updated resource model for the ICP in Q1 2018 to incorporate these assay results. In addition, a fourth drill hole was completed in coordination with an independent geotechnical firm to provide rock mass data and acquire additional mineralized material for metallurgical testing.
The Company believes the updated resource and mine plans will have a positive impact on mine unit costs per lb of cobalt and life of mine cobalt production which would positively impact project economics.
Quality assurance and quality control
All samples were shipped to ALS Global labs in Elko, Nevada for preparation and shipped to ALS Global labs in Vancouver, BC for analysis. ALS AA46 method, typically used for higher grade assays, was used for cobalt and copper analysis. 30 gram fire assay with an atomic absorption spectrometry AA23 was used for gold analyses. Blind standards and blanks were inserted into the sample chain representing approximately 10% of the samples assayed.
E.R. (Rick) Honsinger, P.Geo., Senior V.P. with eCobalt, is the Qualified Person who has reviewed the contents of this news release.
About eCobalt Solutions Inc. (www.eCobalt.com)
eCobalt is a well-established Toronto Stock Exchange listed company committed to providing ethically produced, environmentally sound, battery grade cobalt products, essential for the rapidly growing rechargeable battery and renewable energy sectors, made safely, responsibly, and transparently in the United States. The Company's ICP, located in East Central Idaho, is the only near term, environmentally permitted, primary cobalt project in the United States. It is 100% owned by the Company's wholly owned subsidiary, Formation Capital Corporation, U.S.
eCobalt Solutions Inc.
"J. Paul Farquharson"
J. Paul Farquharson
President & CEO
Cautionary Statement on Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Statements in this news release pertaining to expected financings, filings, uses of proceeds or project completion dates are forward-looking statements. These forward-looking statements are based on assumptions and address future events and conditions and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are not guarantees of future results, performance or achievement. These risks, uncertainties and factors include general business, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; fluctuations in currency exchange rates; changes in project parameters; changes in costs, including labour, infrastructure, operating and production costs; future prices of cobalt; variations of mineral grade or recovery rates; operating or technical difficulties in connection with exploration, development or mining activities, including the failure of plant, equipment or processes to operate as anticipated; delays in completion of exploration, development or construction activities; changes in government legislation and regulation; the ability to maintain and renew existing licenses and permits or obtain required licenses and permits in a timely manner; the ability to obtain financing on acceptable terms in a timely manner; contests over title to properties; employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the risks involved in, the exploration, development and mining business.
Such projections are and will inevitably always be dependent on assumptions about future mineral prices and development costs which will be subject to fluctuation due to global and local economic and industry conditions. Further information regarding risks and uncertainties which may cause results to differ from those contained in forward-looking statements is included in filings by the Company with securities regulatory authorities and is available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Although the Company has disclosed that the ICP remains the sole, near term, environmentally permitted, primary cobalt deposit in the United States and offers a unique potential for North American consumers to secure an ethically sourced, environmentally sound supply of battery grade cobalt products, there is no guarantee that the Company will attain commercial production of such cobalt products for use in the rechargeable battery sector. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.
The statements contained in this news release in regard to eCobalt that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including eCobalt's beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to eCobalt as of such date. It is important to note that actual outcome and the actual results could differ from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate, commodity price and marketplace changes.
SOURCE eCobalt Solutions Inc.