US COBALT’S INITIAL DRILLING INTERSECTS HIGH GRADE COBALT MINERALIZATION AT IRON CREEK COBALT PROJECT
October 4, 2017 – VANCOUVER, BRITISH COLUMBIA – US Cobalt Inc. (the “Company“) (TSXV: USCO) (Frankfurt: 26X) (OTCQB: SCTFF) is pleased to announce analytical results from the first 13 surface core holes drilled during the 2017 exploration program at the Iron Creek cobalt project (the “Property“) in Lemhi County, Idaho, USA. The Company has completed the first 24 of a planned 40 core drill holes comprising this surface core drilling campaign. The analytical results for cobalt of the first 13 core drill holes are presented in the table below - all holes encountered sulfide mineralization with significant cobalt.
Highlights (all widths are true thickness determined by 2017 drilling, underground mapping and sampling and analysis in 3-D Vulcan software):
- Drill hole IC17-08 encountered a zone grading 0.51% cobalt over a thickness of 32 feet, including a 12 foot thick zone grading 0.73% cobalt, which includes a 4.5 foot thick zone grading 1.08% cobalt.
- Drill hole IC17-08, with holes IC17-03, IC17-05 and IC17-06, defines cobalt mineralization up to 500 feet from surface.
- Drilled approximately 400 feet to the west of hole IC17-08, drill hole IC17-10 encountered a cobalt bearing zone 56 foot thick grading 0.31% cobalt, including a 26 foot thick zone grading 0.4% cobalt, which contains 6 feet grading 0.61% cobalt, and 11.5 feet grading 0.41% cobalt.
- Along with holes IC17-04 and IC17-07, drill hole IC17-10 contributes to the definition of a cobalt bearing zone which extends to a depth of 400 feet from surface.
Drill hole IC17-10 contains the most significant copper intercept among the 13 drill holes, encountering a 56 foot wide zone grading 0.91% copper and a 29 foot wide zone grading 1.37% copper. More copper is expected in the holes being drilled to the west.
US Cobalt is conducting the first exploration program at Iron Creek in several decades. The Iron Creek Property covers a west-northwest striking, steeply northerly dipping cobalt and copper sulfide bearing zone named the No Name Zone. The 2017 surface drilling campaign is designed to test cobalt and copper mineralization within the No Name Zone over a strike length of 1,600 feet, and a depth extent 700 to 800 feet from surface.
The combined length of the first 13 holes is 10,331 feet. A total of 24 holes has been drilled, with a combined length of 19,206 feet. Samples from the next ten holes will be shipped to the lab this week for analysis, with results expected within 3 or 4 weeks of delivery.
Cobalt mineralization encountered in the first 13 holes is presented in the following table:
Sr. Vice President, Exploration, Brian Kirwin commented: “These are very encouraging cobalt results, from one of the few active cobalt drilling programs in the United States. Along with the results from the underground channel sampling, US Cobalt’s drilling results continue to provide confidence in the historic work conducted by Noranda and Cominco, among others. With $27 per pound cobalt prices, close to 8 year highs, Iron Creek is showing excellent potential and we are excited to continue exploration at the project.”
Rehabilitation and sampling of Adit Number One is complete, and work has commenced on the rehabilitation of Adit Number Two. Results from rib channel sampling of Adit Number One are presented in Company news release dated July 31, 2017. As previously announced, the underground channel sampling identified a 20 foot true thickness zone in four channels: 20 feet grading 0.45% cobalt, 20 feet grading 0.57% cobalt, 30 feet grading 0.56% cobalt and 45 feet grading 0.54% cobalt (the latter two channels taken from the drift are at more acute angles to the mineralized zone and do not represent true thickness).
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.
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.
For additional information please contact:
US Cobalt Inc.
Wayne Tisdale, President
T: (604) 639-4457
The drill samples were collected by Company personnel or contractors working for the Company at the Company’s project facilities. All of the Company’s facilities are kept secure. The core is transported by Company personnel to the Company’s core processing facility on the property 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 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. Subsequent to sawing and sampling, the remaining half core is geologically logged and 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. The underground drill core samples were loaded directly from the core processing facility into a truck for shipment to the laboratory where the lab took custody directly from the 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. AAL is ISO / IEC 17025 certified and has successfully completed Canadian proficiency testing (CCRMP). A total of 278 check samples including duplicates, blanks and standards of various grades were analyzed along with the 816 drill core samples. The check samples represent 25.4% of all analyses. Correlation of the check samples with expected values were excellent. At the AAL laboratory, the core samples were dried, weighed (the samples averaged 11.4 pounds of rock), 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 2 acid, and 4 acid, and 5 acid digestions for ICP analysis. The 5 acid digestion was employed in a secondary analysis because of the high grades, and represent the final analytical results described above.
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.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation and environmental regulation; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; liabilities inherent in mining operations; competition for, among other things, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, processing and transportation problems; changes in tax laws and incentive programs; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
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