June 23, 2017
eCobalt Provides Feasibility Study Update on the Idaho Cobalt Project
June 23, 2017, Vancouver, B.C., eCobalt Solutions Inc. (TSX: ECS; OTCQB: ECSIF) (the “Company” or “eCobalt”) is providing its shareholders with an update on the Company’s Feasibility Study for the 100% owned Idaho Cobalt Project (“ICP”). The ICP is the only near term, environmentally permitted, primary cobalt project located in the United States. In 2016 eCobalt commissioned the Feasibility Study with Micon International Limited (“Micon”) and SNC-Lavalin (“SNC”). Since the Company’s May 31, 2017 update, engineering efforts have focused on mine schedule optimisation and third-party review of the mine planning parameters. A preliminary mine schedule has been provided to Small Mine Development (“SMD”) for costing. The Company anticipates the project’s capital cost estimate to be completed near the end of June. SMD, headquartered in Boise, Idaho, has a solid reputation for providing safe, productive and innovative underground, hardrock mining solutions.
Micon has reported advancements in the following areas:
- Geology and Resources: Preparation of the relevant sections of the National Instrument 43-101 compliant technical report is in progress with a draft of the relevant sections of the report currently under review.
- Geotechnical Studies: Flotation tailings obtained from the SGS Lakefield test-work is currently being utilized in paste backfill tests conducted by Patterson & Cooke. Paterson & Cooke has provided consulting services to the mining and resource industries for over 25 years. Their expertise includes tailings processing and transport systems, mine backfill systems and mine water management systems.
- Mining and Reserves: A preliminary mine production schedule has been provided to SMD. SMD will prepare a contract mining cost estimate for the preproduction period Year -1, and operating Years +1 and +2. These estimates will include the initial mine development costs for the first two years, surface and underground mining equipment, electrical and communication design, backfill and dewatering system design, compressed air supply and ventilation.
- Cobalt Production Facility (the “CPF”): An option to purchase land for the CPF has been secured within an industrial park in Blackfoot, Idaho. A geotechnical drilling program has been completed and material testing is underway. Preliminary reviews of the borehole logs show little variation in the underlying geology and are consistent with the geotechnical report from the adjacent land with an established industrial operation. The highway accessible site has excellent infrastructure including low cost electrical grid power, adjacent rail, potable water and access to local municipal sewer systems. Discharge from the CPF will meet the standards of the local municipal water treatment plant without further processing.
- Engineering Design: All material take-off’s (determining all materials required to accomplish the design and costing) and equipment lists have been provided to the estimating team and are being incorporated into the project costs.
Micon reported progress on the major engineering disciplines as follows:
Discipline / Area
Geology & Mineral Resources
Mine Engineering & Design
Capital cost estimate
Operating cost estimate
Preparation of Technical Report
Development of operating expenditures are ongoing together with mining capital estimation and optimisation of the mining schedule. A metallurgical simulation model is being finalized and will feed into the project cost development.
Outlook for cobalt is bullish with increasing demand driven primarily by the electric and hybrid electric vehicle markets that utilize rechargeable batteries that require cobalt. LME Cobalt prices recently broke through US$26.50/lb for 99.3% metal as end-consumers looked to secure long-term contract material requirements ahead of tightening concentrate and refined metal and chemical supply.
eCobalt’s Annual General and Special Meeting
The Company’s Annual General and Special Meeting is scheduled to take place on Wednesday, June 28, 2017 at the Terminal City Club located at 837 W Hastings St, Vancouver, BC at 10:00 am. The Company is pleased to announce that David Christie, Gregory Hahn, Scott Hean, Paul Farquharson, and Rob Metka are nominated for re-election as Director’s at this year’s Annual General and Special Meeting. The Company is also pleased to announce that David Smith, CFO at Angico Eagle, is nominated as a new Director to join the Board.
“eCobalt is well positioned to capitalize from the bullish cobalt market”, commented Paul Farquharson, President & CEO of eCobalt. He continued, “As expected, many new players have recently entered the cobalt sector, however, the ICP remains the sole near term, permitted cobalt mine in the US. Our comprehensive and detailed Feasibility Study, which will be available soon, will assist us in securing financing to get this project into production. In the meantime, the Company is focused on adding strength to our Board of Directors and our senior management team.”
E.R. (Rick) Honsinger, P.Geo., Senior Vice President of the Company, is the Qualified Person as defined by National Instrument 43-101 who has supervised the preparation of this news release and has approved its contents.
About eCobalt Solutions Inc. (www.ecobalt.com)
eCobalt Solutions is a well-established Toronto Stock Exchange listed company committed to providing ethically produced, environmentally sound, battery grade cobalt salts, essential for the rapidly growing rechargeable battery and renewable energy sectors, made safely, responsibly, and transparently in the United States.
eCobalt Solutions Inc.
“J. Paul Farquharson”
J. Paul Farquharson
President & CEO
For further information please contact:
eCobalt Solutions Inc., 1810 – 999 West Hastings Street, Vancouver, BC, V6C 2W2
Tel: 604-682-6229 - Email: [email protected] – Web: eCobalt.com
Cautionary Statement on Forward Looking Statements
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.
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 Idaho Cobalt Project 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 chemicals, there is no guarantee that the Company will attain commercial production of such cobalt chemicals 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 Solutions Inc. that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including eCobalt Inc.’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 Solutions Inc. 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.
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