ECobalt Solutions Inc.'s share price surged over 13% in Toronto on Feb. 7 after the company announced an updated resource estimate for its preproduction-stage Idaho cobalt property.
Total measured and indicated resources increased to 45.7 million pounds of contained cobalt, 65.8 million pounds of copper and 68,000 ounces of gold hosted within 3.9 million short tons of ore grading 0.59% cobalt, 0.85% copper and 0.017 oz/t of gold.
Inferred resources are estimated to contain 16.7 million pounds of cobalt, 29.4 million pounds of copper and 27,000 ounces of gold contained within 1.8 million tons grading 0.46% cobalt, 0.81% copper and 0.015 oz/t of gold.
The estimate uses a cutoff grade of 0.20% cobalt, with no consideration of copper or gold content used in determining the cutoff, according to the company.
The previous September 2017 estimate outlined measured and indicated resources containing 40.6 million pounds of cobalt, 50.4 million pounds of copper and 54,200 ounces of gold with inferred resources containing 15.6 million pounds of cobalt, 21 million pounds of copper and 18,700 ounces of gold.
The updated analysis is based on results from a 5,000-foot drill program completed in 2017 along with a review and inclusion of older drill results that were not previously included as well as a new 3-D resource model.
ECobalt will incorporate the new resource estimate into a new, optimized feasibility study expected to be completed in the second quarter. The previous feasibility study, completed in September 2017, outlined a posttax net present value, discounted at 7.5%, of US$135.8 million, with a 21.3% internal rate of return.
In mid-January, the company signed multiple letters of intent with potential off-take partners for its clean cobalt concentrate.
