VANCOUVER, May 31, 2017 /CNW/ - eCobalt Solutions Inc. (TSX: ECS; OTCQB: ECSIF) (the "Company" or "eCobalt") is providing its shareholders with an update on the Company's Feasibility Study ("FS") 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.
Significant progress on all fronts has been made on the FS over the course of the past couple of months. The project continues to advance with milestones achieved in several disciplines, notwithstanding that some engineering tasks have taken significantly longer than was originally anticipated. In 2016 eCobalt commissioned the Feasibility Study with Micon International Limited ("Micon") and SNC-Lavalin ("SNC") with initial results expected in late calendar Q2 / early Q3, with the NI 43-101 compliant Technical Report for SEDAR filing to follow within 45 days. Feasibility Study engineers have reported that there are no further foreseeable challenges for the engineering efforts at this time.
Micon reported key milestones achieved for the project since our last update in March, 2017 consisted of:
In addition to the completion of the Resource Model and Mine Schedule noted above, SNC-Lavalin has completed its review and revision of the basic process engineering for the mill/concentrator and the CPF.
As at May 1, 2017, Micon reported progress on the major engineering disciplines are as follows:
| Discipline / Area |
% Complete |
| Geology & Mineral Resources |
100 |
| Mine Engineering & Design |
90 |
| Mill/Concentrator Engineering |
100 |
| CPF Engineering |
100 |
| Capital cost estimate |
75 |
| Operating cost estimate |
25 |
| Economic Results |
25 |
| Preparation of Technical Report |
30 |
The proposed underground mine development layout has been optimized to minimize the scheduled lead time while providing access to stopes of above average grade early in the mine life to assist in minimizing mine payback schedule. Equipment requirements and layouts for both plants have been finalized and material take-offs (determining all materials required to accomplish the design and costing) have been quantified.
The outlook for the demand for cobalt, driven primarily from the rapidly growing rechargeable battery sector and electric vehicles remains bullish. This demand has been reflected in the commodities rapid price growth, where it appears to have stabilized over the past several weeks at around US$25.00 per pound. This is the reported price on the LME for 99.3% cobalt metal. Cobalt contained in cobalt sulphate heptahydrate currently carries an additional premium of approximately 20%, as it does currently in China.
The Company's balance sheet remains in a strong position with cash and cash equivalents of $19.22 million as at February 28, 2017.
"This strong balance sheet allows the Company to expand its technical team on the mining and process sides in anticipation of moving the project through the Feasibility Study into detailed engineering. It is also allowing us to actively pursue project financing options and undertake other opportunities to increase value for all our shareholders", commented Paul Farquharson, President & CEO of eCobalt.
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
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.
SOURCE eCobalt Solutions Inc.
eCobalt Solutions Inc., 1810 - 999 West Hastings Street, Vancouver, BC, V6C 2W2, Tel: 604-682-6229, Email: [email protected] - Web: eCobalt.com
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