US COBALT DRILLS ADDITIONAL HIGH GRADE COBALT AND EXTENDS MINERALIZATION BEYOND THE HISTORIC ESTIMATE TARGETS
Hole IC17-29 drills 78.4 feet (23.9 meters) grading 0.40% CoEq (0.35%Co+0.53%Cu)
including 8.0 feet (2.4 meters) grading 0.71% CoEq (0.71%Co+0.01%Cu)
and including 30.2 feet (9.2 meters) grading 0.55% CoEq (0.46%Co+0.92%Cu)
and including 12.1 feet (3.7 meters) grading 0.70% CoEq (0.60%Co+1.11%Cu)
March 1, 2018 – VANCOUVER, BRITISH COLUMBIA – US Cobalt Inc. (the “Company“) (TSXV: USCO) (Frankfurt: 26X) (OTCQB: USCFF) announces analytical results from a further five surface core holes drilled during 2017 at the Iron Creek project (the “Property“) in Idaho, USA. All five core holes encountered sulfide mineralization with significant cobalt values. All widths or thicknesses reported here are true thickness based on 3-D modeling.
One hole reported here (IC17-29) further confirms significant mineralization within the main target identified by the historical estimate (see Company news release - September 7, 2016), and another six holes have been completed in this area with results pending (see Company news release dated October 4, 2017 for previous drill results from this target). Three holes reported here (IC17-24, 27, and 30) are located west of the historical estimates, and results for one additional hole are pending. One hole reported here (IC17-25) is located between the two historical estimates, with results for one additional hole pending in the area.
High grade intervals from the current five holes include:
12.8 feet (3.9 meters) grading 0.57% CoEq (0.23%Co+3.53%Cu) in hole IC17-24,
4.6 feet (1.4 meters) grading 0.81% CoEq (0.44%Co+3.89%Cu) in hole IC17-24,
2.8 feet (0.9 meters) grading 0.53% CoEq (0.53%Co+0.01%Cu) in hole IC17-27,
8.0 feet (2.4 meters) grading 0.71% CoEq (0.71%Co+0.01%Cu) in hole IC17-29,
12.1 feet (3.7 meters) grading 0.70% CoEq (0.60%Co+1.11%Cu) in hole IC17-29, includes:
5.5 feet (1.7 meters) grading 0.82% CoEq (0.71%Co+1.23%Cu) in hole IC17-29,
4.8 feet (1.5 meters) grading 1.15% CoEq (0.09%Co+11.28%Cu) in hole IC17-30,
8.2 feet (2.5 meters) grading 0.51% CoEq (0.47%Co+0.39%Cu) in hole IC17-30.
The objective of the 40-hole, 35,000 foot (approximately 10,700 meter) 2017 drilling campaign is to confirm the historical estimates of cobalt mineralization (see Company news release - September 7, 2016). The Iron Creek Property covers a west-northwest striking, steeply northerly dipping mineralized zone which contains cobalt and copper mineralization in sulfides. The 2017 surface drilling campaign is complete and analysis of the samples continues. The Company is building the geological and grade models for resource estimation. In anticipation of completing a resource estimate during 2018, the Company has started collecting samples for density testing, mineralogical investigations, and will soon initiate metallurgical testing.
Sr. Vice President, Exploration, Brian Kirwin commented: “The 2017 drill results continue to expand the potential of the Iron Creek project. The underground drill program is currently exploring beyond the historical estimates to the West. Notably, drill hole IC17-24, west of the historical estimates, contains the highest grades seen thus far at Iron Creek: a true thickness of 0.89 feet (0.27 meters) grading 2.2% CoEq, with 1.01% cobalt and 12.6% copper. We are excited to continue the rapid exploration and then development of Iron Creek. Several drill holes from these same areas are at the lab and results are pending.”
A summary of the intercepts from the current drill holes are [CoEq = Cobalt Equivalent; calculated as copper/10.58=CoEq, January 4, 2018]:
As previously announced, The Property is leased from Chester Mining Company (OTC: CHMN) subject to the Company’s buy-out rights.
As previously announced, historic tonnage and grade estimates indicate that the Property contains 1,279,000 tons grading 0.59% cobalt – please refer to the Company’s news release dated September 7, 2016. Due to the age of the geological work done to establish current anticipated tonnage, the Company is treating these tonnage and grade estimates 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. The historical estimates are contained within a report entitled “Iron Creek Prospect, Lemhi County, Idaho (#0483) Progress Report” by Terry A Webster and Thomas K Stump for Noranda Exploration, Inc., July 1980, which report does not detail cut-off grades and metal prices used to estimate the historical mineralization and used a tonnage factor of 11 cubic feet per ton. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources and the Company is not treating the historical estimates as current mineral resources. More work, including, but not limited to, drilling, will be required to confirm 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 Property. Other than as provided for in this press release, the Company has not undertaken any independent investigation of the historical estimates or other information contained in this press release nor has it independently analyzed the results of the previous exploration work in order to verify the accuracy of the information. The Company believes that the historical estimates and other information contained in this press release are relevant to continuing exploration on the Property because they identify significant mineralization that will be the target of the Company’s exploration program.
The drill samples and underground channel samples are collected by Company personnel or contractors working for the Company at the drill or portal. All of the Company’s facilities are kept secure. The core is transported to the Company’s core processing facility in Challis operated by Earl Waite and Sons Mining Contractors who are contracted by the Company. There the core is logged, cut and sampled and subsequently delivered to the laboratory. All facilities are secure.
All core is logged for recovery and other geotechnical features, prior to being sawed lengthwise in half by the Company’s contractors. Individual core samples are selected on a geological basis to characterize mineralization. The core is geologically logged and half core is stored on site as reference samples in a secure facility. The samples are bagged, labeled and tied at the core processing facility by the Company’s contractors. Geologic information is recorded on standardized sample description forms which included color, rock type, alteration, mineral species and abundance. Samples are stored in a secure facility at the core processing site until delivered to the laboratory. Blanks, duplicates and standards are inserted at the core processing site as part of the QA/QC program. The drill samples were loaded directly from the core processing facility the truck of a shipping company and driven directly to the laboratory where the lab took custody directly from a Company employee. The sampling was overseen by Brian Kirwin, Senior Vice President Exploration for the Company.
American Assay Laboratories (AAL) in Sparks, Nevada conducted the analyses of the drill core samples, and analyzed the Company’s QA/QC samples at the same time, and the Company plans to utilize the services of AAL for the core samples. AAL is ISO / IEC 17025 certified and has successfully completed Canadian proficiency testing (CCRMP). Over 15% of the samples analyzed are control samples consisting of checks, blanks, and duplicates inserted by the Company - this is in addition to the control samples inserted by the lab. Correlation of the standards with expected values were excellent. At the AAL laboratory, the drill core samples were dried, weighed crushed to 85 % passing -6 mesh, roll crushed to 85% passing -10 mesh, split 250 gram pulps, then pulverized in a closed bowl ring pulverizer to 95 % passing -150 mesh, then analyzed by a 5 acid digestion for ICP analysis.
Mr. Garry Clark, P. Geo., of Clark Exploration Consulting, is the “qualified person” as defined in NI 43-101, who has reviewed and approved the technical content in this press release.
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This news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the proposed exploration program on the Property. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
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