Name of the Project
First Cobalt refinery – recommissioning and expansion project.

Location
Ontario, Canada.

Project Owner/s
First Cobalt Corp.

First Cobalt and Glencore signed a memorandum of understanding on May 21, 2019, outlining the terms of a potential partnership to produce refined cobalt for the North American market.

Project Description
The First Cobalt refinery is the only permitted primary cobalt refinery in North America.

The project entails the recommissioning of the refinery at 12 t/d in late 2020 and then completing a 55 t/d expansion by the fourth quarter of 2021.  At the expanded throughput, the parties expect that the refinery could produce an estimated 25 000 t/y of battery cobalt sulphate for the North American market.

First Cobalt is also considering a dry stack tailings management facility as an alternative to tailing impoundments for the 55 t/d operating scenario. Dry stacking or filtered tailings have a number of benefits, including a smaller environmental footprint and lower water-treatment requirements.

Potential Job Creation
The project will create direct full-time employment for up to 30 people.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Total capital investment under the three phases is estimated at $45-million.

On August 26, 2019, Glencore extended a $5-million loan to complete advanced engineering, metallurgical testing, fieldwork and permitting associated with the project, which will culminate in a definitive feasibility study for a 55 t/d refinery expansion.  Subject to certain conditions, Glencore is prepared to advance an additional $40-million to complete this project.

Planned Start/End Date
The feasibility study is scheduled for completion in the first quarter of 2020. The refinery is expected to be recommissioned by the fourth quarter of 2020.

Latest Developments
The prefeasibility study for a 12 t/d restart and a second definitive feasibility study (DFS) for a 55 t/d expansion scenario is on schedule for completion in the first quarter of 2020.

First Cobalt has said that, given the fieldwork completed to date, the confidence level in the 12 t/d scenario could potentially reach the DFS level.

The field programme to assess the condition of equipment and systems currently installed in the refinery has been completed by Ausenco Engineering Canada. The six-week programme was concluded in four weeks largely owing to the overall good condition of the equipment that was tested

Knight Piésold has completed geotechnical drilling on a potential new tailings area in First Cobalt's 80 acre clayfield to the north of the refinery complex to support feasibility-level design work.

Story Environmental is engaging with regulatory authorities to ensure that the 12 t/d restart scenario complies with existing permits. New baseline studies are in progress in anticipation of amending the existing permits for an expansion.

A final decision to put the refinery back into production is contingent on the outcome of the feasibility study and the completion of a long-term feed supply agreement with Glencore.

Key Contracts and Suppliers
Ausenco Engineering Canada (equipment inspection); Knight Piésold (geotechnical drilling); and Story Environmental (baseline studies, permit compliance).

On Budget and on Time?
As of November 30, 2019, the feasibility study was on budget and on time.

Contact Details for Project Information
First Cobalt Corp, tel +1 416 900 3891 or email info@firstcobalt.com