Location of the Colson Cobalt-Copper Project within the Idaho Cobalt Belt, Idaho, USA.

Image of cobalt-in-soil geochemistry data from the recent systematic soil sampling programs at the Colson Cobalt-Copper Project, Idaho.

Schematic location of initial holes to be drilled during the Company’s forthcoming diamond core drilling program, on an image of cobalt-in-soil geochemistry data from the recent systematic soil sampling programs at the Colson Cobalt-Copper Project, Idaho.

New World Cobalt holds an option to acquire 100% of the Salmon Canyon Copper-Cobalt Deposit, which is located at the northern end of North America’s premier cobalt district – the 60km long Idaho Cobalt Belt (“ICB”).

New World’s Colson Cobalt-Copper Project comprises a 100% interest in 311 Federal mining claims (covering ~6,220 acres) that surround 10 additional Federal mining claims (covering an additional ~200 acres; New World is acquiring a 100% interest in these), within which the Salmon Canyon Copper-Cobalt Deposit (“Salmon Canyon Deposit”) is located.

Outcropping copper-cobalt mineralisation was discovered at the Salmon Canyon Deposit in the early 1960s.

A 400m long adit and 2 raises (for about 200m) were installed to explore the mineralisation. Eighteen short diamond core holes were drilled from the adit, and a further two diamond core holes drilled from surface. Many of the initial drill holes weren’t assayed for cobalt.

The underground exploration work, in conjunction with surface mapping, delineated two parallel, sub-horizontal horizons of stratiform copper-cobalt mineralisation (chalcopyrite, cobaltite, arsenopyrite and pyrite) within metamorphosed sediments. These mineralised horizons extend over >300m of strike and >600m down-dip and average 7-10m in thickness. Mineralisation remains open in both directions along strike and down dip, with historic reports suggesting grade increases to the north and west.

Better results from previous underground sampling programs include:

  • 2.5m @ 5.33% Cu, 0.59% Co, 2.24 g/t Au
  • 1.3m @ 6.16% Cu, 0.65% Co, 2.54 g/t Au
  • 1.8m @ 2.99% Cu, 0.31% Co, 3.48 g/t Au and 27.7 g/t Ag

Prior to New World Cobalt’s involvement, virtually no work had been undertaken at the Project since 1980.

Soil Sampling

In late 2017, the Company completed the first systematic exploration ever undertaken immediately south of the Salmon Canyon Deposit. 209 soil samples were collected on a 150m x 50m grid. A strong coincident cobalt-copper anomaly was delineated over >1.3km of strike. This is interpreted to arise from the up-dip extension of the Salmon Canyon Deposit.

In light of the success of this initial soil sampling program, the Company subsequently embarked on a second-phase soil geochemistry program, this time collecting 395 samples immediately over, and along strike from, the Salmon Canyon Deposit (also on a 150m x 50m grid).

Very high assay results were returned during this recent program, with cobalt assays (from soil samples) to 753 ppm (0.07% Co) and copper assays to 5,160 ppm (0.52% Cu). More significantly however, is that strong, coherent anomalies have been delineated over substantial strike lengths, indicating there is significant potential to discover sizeable mineral deposits.

The Company’s initial interpretation is that the 1.3km-long cobalt-copper anomaly centred on the Salmon Canyon Deposit likely arises from the strike extensions of the known high-grade mineralisation there.

The 1.9km-long “Long Tom Anomaly”, located 1.2km north-west of the Salmon Canyon mine portal, may arise from a completely new, previously unexplored, mineralised system. Very encouragingly, the highest cobalt assay results received to date (up to 753 ppm Co) were returned from samples collected within this new Long Tom Anomaly.

The anomalism delineated in the first phase of soil sampling, immediately south of the shallowly-dipping Salmon Canyon Deposit, is still pronounced and continues to be interpreted to potentially arise from the up-dip extension of this deposit.

Further exploration is continuing in order to rapidly advance these targets to the drill-ready stage.

Additional soil sampling in new areas is also in progress.

Drilling

In late June 2018 the Company received all permits required to undertake its maiden drilling program at the Colson Cobalt-Copper Project. The permits will allow the Company to evaluate the strike and depth extensions of the historical high-grade Salmon Canyon Copper-Cobalt Deposit. An initial 5,000-7,000m diamond core drilling program is expected to commence in late-July.