RCKS Talk

04-Oct-2018

First Cobalt Corp.

FCC Hits Broad Zones of Mineralization at Iron Creek

Impact: Positive

First Cobalt has released drill results from its Iron Creek Project in Idaho, USA, which were highlighted by broad zones of mineralization. These results should help growth the resource but may introduce the option of underground bulk mining. Recall that they recently released an inferred resource estimate that showed growth . The drilling tested a high-grade zone at the western extent of the company’s resource, which remains open along strike and at depth. All of this supports our investment thesis that First Cobalt has shifted from exploration to development, with an increased focus on its Iron Creek project.

  • First Cobalt intersects both copper-rich and cobalt-rich zones outside the recent resource. The company highlighted copper intercepts of 10.0m of 4.04% Cu and cobalt intercepts of 1.04% Co (~10.4% CuEq) over 1.5m, where the company is intersecting higher grade cobalt zones towards the eastern extent of known mineralization and copper-rich zones to the west. We expect these results to be additive to the existing resource, both from an open-pit and underground perspective. 
  • Broad zones of mineralization may provide design flexibility in the future. With two possible development scenarios currently under consideration, open-pit (26.9 Mt grading 0.11% CoEq or ~1.1% CuEq) and underground (4.9 Mt at 0.30% CoEq or ~3.0% Cu), broader zones of high-grade Cu-Co are likely to benefit both underground and open-pit develop scenarios, for the companies PEA planned for early 2019.
  • Mobilization of a third drill rig on site. We are expecting a steady stream of results from the company as it aggressively drills (30,000m) planned to double the strike length from 450m to 900m. The company intends to add a third drill rig this month to identify extensions of known mineralization as well as new targets.
Based on the updated resource, First Cobalt trades at, C$0.65/lb CoEq, this compares to other primary cobalt explorers/developers at C$0.46/lb CoEq. We view the premium as warranted given the company’s growing resource at Iron Creek, its dominant land position in the Cobalt Camp and its ownership of the only permitted cobalt refinery in North America.


28-Sep-2018

First Cobalt Corp.

Iron Creek Resource Starts the Transition to Developer

Impact: Positive

First Cobalt released the results of an updated mineral resource estimate for its recently acquired Iron Creek Project in Idaho. We view the resource positively, as it delivers a 277% increase in tonnes (underground scenario) over the historic resource with 10,800m of drilling and starts the companies transition from explorer to developer, making it easier for investors to value to the company.
  • Resource presents to possible development scenarios, open-pit (26.9 Mt grading 0.11% CoEq or 1.1% CuEq) and underground (4.9 Mt at 0.30% CoEq or 3.0% Cu), we view both as possible as the project is located on patented land which should ease the permitting process
  • Tonnes are up over the historic underground only resource but grades are down (78%). However, there has been a substantial increase in the cobalt price (~388%) since the historic resource making lower grades more economic
  • Initial metallurgy looks very favourable, as few primary cobalt projects outside the Democratic Republic of Congo have limited arsenic association. Preliminary rougher floatation tests resulted in 96% Co and 95% Cu recoveries
  • 30,000m drill program is underway targeting a doubling of the strike length (450m to 900m) and to depth ahead of an updated resource and PEA in early 2019
Based on the updated resource, First Cobalt trades at, C$0.65/lb CoEq, this compares to other primary cobalt explorers/developers at C$0.46/lb CoEq. We view the premium as warranted given the company’s dominant land position in the Cobalt Camp and its ownership of the only permitted cobalt refinery in North America.

19-Jul-2018

First Cobalt Corp.

Drilling High-Grade Cobalt at Iron Creek

Impact: Mildly Positive

First Cobalt has tested the western extension of mineralization at the Waite Zone of the Iron Creek Cobalt Project in Idaho with 6 underground drill holes, validating previous results which had extended the total strike length of the zone to 520m and along a dip length of over 250m.
  • At the Waite Zone, a broad intercept, to the west of the previously drilled initial resource area, contained 24.6m grading 0.28% Co and 0.22% Cu (0.30% CoEq or 3.02% CuEq, based on US$30/lb Co and US$3/lb Cu)
  • The high-grade intercepts are contained within broader zones of lower grade cobalt-copper mineralization that has the potential to be suitable for bulk mining methods, pending further drilling
  • Drilling at Iron Creek has extended the strike and dip beyond the boundaries of the maiden resource estimate expected in October (primarily based on 2017 drilling by US Cobalt), and an encouraging consistency of cobalt grades over wider widths and higher than expected copper grades, support further testing of the western strike extension of Iron Creek for a second resource estimate in early 2019
On an EV/hectare basis, First Cobalt is trading at a discount to other cobalt explorers in the Cobalt Camp of Ontario (C$0.011/ha vs peers at C$0.018/ha). We continue to believe the company’s unique attributes, including its land position, infrastructure and recent acquisition of US Cobalt are likely to close the gap to other cobalt exploration peers.

10-Jul-2018

First Cobalt Corp.

Second Cobalt Trend Identified in Kerr Area of Cobalt Camp

Impact: Mildly Positive

First Cobalt has identified a second cobalt mineralized trend in the Kerr area at the Cobalt North project in the Canadian Cobalt Camp. The near surface cobalt mineralization extends over a 500m strike length and is parallel to the previously identified Kerr #2 Zone located 400m south, which has been traced over 350m to date.
  • Several closely spaced Co-Ag veins were intersected near the historic Drummond and Kerr Lake Mines, including: 6.5m grading 0.33% Co and 133 g/t Ag in addition to 10.7m grading 0.14% Co and 13.9 g/t Ag
  • Recent results support the company’s vision of large scale open pit mining in the Cobalt Camp, with new mineralization located just 400m north of Kerr #2 Zone; further testing is required to determine the continuity within the vein network system
  • First Cobalt is now reallocating a larger portion of this year’s exploration budget into the Kerr area despite having a multitude of other prospective targets across its land package; results from 9 holes are pending and additional drilling is planned
On an EV/hectare basis, First Cobalt is trading at a discount to other cobalt explorers in the Cobalt Camp of Ontario (C$0.011/ha vs peers at C$0.016/ha). We continue to believe the company’s unique attributes, including its land position, infrastructure and recent acquisition of US Cobalt are likely to close the gap to other cobalt exploration peers.

24-May-2018

First Cobalt Corp.

Kerr Strike Extended; US Cobalt Acquisition Approved

Impact: Positive

First Cobalt continues to gain momentum as the company releases another set of drill results from the Kerr area in Cobalt North and the US Cobalt acquisition gains approval.

  • US Cobalt acquisition approved; recent high-grade results confirm reasoning
  • Kerr area mineralized zone expands another 150m, total length now 350m and remains open
  • Mineralization mostly intercepted from 25m to 100m: believed to extend to surface
We continue to believe the company’s unique attributes, including its land position and infrastructure are likely to see First Cobalt trade at a premium to other cobalt exploration peers. The completion of the US Cobalt acquisition is the next key catalyst for the company, which is expected around May 31, 2018.

 

03-May-2018

First Cobalt Corp.

High Priority Kerr Area Extends over 200m; Remains Open

Impact: Mildly Positive

Encouraging recent drilling in the Kerr area provides momentum for First Cobalt in advancing exploration efforts across its large land package in the Cobalt Camp.

  • Kerr area mineralized zone expands to 200m, remains open
  • Drilling complements disseminated mineralization thesis
  • Follow-up planned for the high priority Kerr area
We continue to believe the company’s unique attributes, including its land position and infrastructure are likely to see First Cobalt trade at a premium to other cobalt exploration peers. Next key catalyst for the company is the completion of the US Cobalt acquisition, expected on or around May 28, 2018.

16-Apr-2018

First Cobalt Corp.

US Cobalt Drill Results Encouraging; Acquisition Advances

Impact: Mildly Positive

On March 14, 2018, First Cobalt Corp. (TSXV:FCC) announced a move into the U.S. with the acquisition of US Cobalt Inc. (TSXV:USCO), owner of the Iron Creek Cobalt Project in Idaho.

  • Acquisition continues to advance, US Cobalt was granted an interim order last week and securityholders will meet May 17, 2018 to consider the transaction
  • Encouragingly, US Cobalt intersected more high-grade cobalt from 2017 drilling, highlight by 0.31% CoEq over 4.1m and 0.50% CoEq over 2.0m including 0.71% over 0.9m (Hole IC17–39), results are pending from 2018 drilling
  • We view the transaction is accretive as provides diversity outside of the Cobalt Camp and adds resources for First Cobalt 
We continue to believe the company’s unique attributes, including its land position and infrastructure are likely to see First Cobalt trade at a premium to other cobalt exploration peers. Next key catalyst for the company is the completion of the US Cobalt acquisition, expected on or around May 28, 2018.

04-Apr-2018

First Cobalt Corp.

Woods Extension Drilling Expands Zone

Impact: Neutral

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A total of 7 holes (1,436m) were drilled north of the Frontier Mine, in the Woods Extension Zone to further test cobalt mineralization. Results from the latest two holes returned 0.47% Co and 0.50% Cu over 0.65m (FCC-18-0015) as well as 0.77% Co and 2.67% Ni over 0.30m (FCC-18-0020).

  • Results continue to extend the Woods vein and could represent an initial resource area but more work is needed
  • While there are hints of broader zones of alteration; assay results continue to suggest narrow veins of mineralization
  • First Cobalt continues to actively explore with ongoing drilling and surface exploration, along with downhole geophysical surveys and televiewer imaging planned in an effort to understand the complex structural nature of this area
 
We continue to believe the company’s unique attributes, including its land position and infrastructure are likely to see First Cobalt trade at a premium to other cobalt exploration peers. Next key catalyst for the company is the completion of the US Cobalt acquisition.

26-Mar-2018

First Cobalt Corp.

Initial Results Identify Possible +100m Zone near Kerr Mine

Impact: Mildly Positive

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Results have identified a possible +100m zone of cobalt mineralization, with more results pending.

  • Initial results identify possible +100m zone in Cobalt North.
  • Results from 3 more holes are pending.
  • Cobalt camp continues to advance, bulk tonnage sampling targets developing.  
We continue to believe the company’s unique attributes, including its land position and infrastructure are likely to see First Cobalt trade at a premium to other cobalt exploration peers. Next key catalyst for the company is the completion of the US Cobalt acquisition.

01-Jan-2018

First Cobalt Corp. (TSXV:FCC)

RCKS Talk Blog Archive

We updated the look & feel of our RCKS Talk Research Blog in March 2018.

To access the historical archives of our original blog format, please click on the link(s) below to be re-directed. Please note that we no longer update those archive blog pages.

Click here to access the RCKS Talk Blog Archive for First Cobalt Corp. (TSXV:FCC)


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