Name of the Project
Idaho cobalt project (ICP).

Location
US.

Client
eCobalt Solutions.

Project Description
eCobalt Solutions has announced positive economics from the feasibility study on the ICP.

The ICP will be a vertically integrated project designed to produce cobalt chemicals for the rechargeable batteries market in addition to by-products of copper concentrate, copper sulphate, magnesium sulphate and gold.

The feasibility study is based on an underground mine with a target production rate of 800 t/d and a life-of-mine production of 31.8-million pounds of cobalt, 42.8-million pounds of copper and 39 241 oz of gold.

The project has an estimated 12.5-year mine life, with a weighted average production of 2.4-million pounds of cobalt a year, 3.3-million pounds of copper a year and 3 000 oz of gold a year.

Additionally, a cobalt production facility (CPF), a hydrometallurgical refining operation located on a railhead in Blackfoot, Idaho, is expected to be built.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at 7.5% discount rate, of $176.9-million and an internal rate of return of 25.1%, with a payback of 2.9 years.

Value
Initial capital costs have been estimated at $186.7-million.

Duration
The project has a preproduction period of 24 months.

Latest Developments
eCobalt has reported a 12.5% increase in the compliant measured and indicated resources at its ICP, following further geotechnical work.

Compared with the previous resource model dated September 2017, total measured and indicated resources have increased to 3.87-million tons, grading 0.59% cobalt for 45.7-million pounds of cobalt, compared with 3.44-million tons, grading 0.59% for 40.6-million pounds of cobalt.

Inferred resources have increased to 18% to 1.82-million tons, grading 0.46% cobalt holding 16.7-million pounds of cobalt, from previous estimates of 1.54-million tons, grading 0.51% cobalt holding 15.5-million pounds of cobalt.

"Work is ongoing to determine the economic significance of these results, which will be incorporated into a new feasibility study and mine plan. The updated resource model also provides additional insight into the controls of mineralisation. This information will help inform future drilling efforts to advance the Ram deposit, as well as planning of mine infrastructure," COO Floyd Varley has said.

The update s based on results from a three-hole, 1 500 m drill programme completed in 2017, as well as a review and inclusion of past drill results not previously considered, and the creation of a new three-dimensional resource model using current state of practice software and geostatistical tools.

These results will be incorporated into a new, optimised feasibility study planned for completion in the second quarter. Until that study is finalised, there can be no assurance that any increase in resources will result in a material change to the reserves and economics of the ICP, the company has cautioned.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
eCobalt Solutions, tel +1 604 682 6229 or email inform@eCobalt.com.