TSX Venture: KBLT
OTCQX: CBLLF
FRA:
27O
TORONTO, Jan. 9, 2019 /CNW/ - Cobalt 27 Capital
Corp. ("Cobalt 27" or the "Company")(TSXV:
KBLT)(OTCQX: CBLLF)(FRA: 27O) at the request
of IIROC, wishes to clarify and retract certain disclosure
contained in an article dated January 9,
2019 entitled "New Strategic Acquisition Could
Significantly Increase Cobalt 27's Attributable Production of
Cobalt to over 600,000 Pounds" (the "Article"). The Article was
authored by a market commentator and purported to discuss the
potential of the Company's acquisition of Highlands Pacific Limited
("Highlands"), which holds an 8.56% interest in the Ramu
nickel-cobalt mine ("Ramu") located near Madang on the north coast
of Papua New Guinea.
The Article makes reference to "mineral reserves totaling
approximately 1 billion pounds of nickel and 100 million pounds of
cobalt." The Company wishes to clarify that while the mineral
resources and ore reserves for Ramu are presented in compliance
with the 2012 Australasian Code for Reporting of Exploration
Results, Mineral Reserves and Ore Reserves established by the
Australasian Joint Ore Reserves Committee (the "JORC Code"), an
acceptable foreign code, we have been asked to provide additional
information on the mineral resource and ore reserves estimates for
Ramu, as set out below under the heading "Ramu Mineral Resource and
Ore Estimates".
The Article also included a quote from a research analyst report
with respect to cash flow yield and the relative price of Cobalt
27's securities, which statements Cobalt 27 retracts. In addition,
the Company clarifies that the statements with respect to cost
quoted from another research analyst report (''provides greater
nickel and cobalt production exposure at a lower cost (~$83-96M vs.
~$145M for the original
stream)'') were intended to refer to cost of the acquisition of
Highlands pursuant to the publicly announced scheme of arrangement
as compared to the previously terminated metals purchase agreement
with Highlands.
Ramu Mineral Resource and Ore Reserve
Estimates
The majority owner and operator of Ramu is MCC Ramu Nico Ltd., a
wholly-owned subsidiary of Metallurgical Corporation of China
Limited ("MCC"), which is listed on the Hong Kong Stock Exchange
(Stock Code "1618") and on the Shanghai Stock Exchange, and has a
market capitalization of approximately US$9
billion. The scientific and technical information in this
news release, as well as additional material scientific and
technical information with respect to the Ramu project, has been
prepared by MCC in its capacity as operator of Ramu and disclosed
by MCC and Highlands and is available on MCC's HKEX profile at
http://www.hkexnews.hk/index.htm as well as on Highlands' website
at http://www.highlandspacific.com/asx-announcements.
All estimates of mineral reserves and mineral resources in
respect of Ramu in this news release are presented in compliance
with the JORC Code. Disclosures of a scientific or technical
nature in this news release have been reviewed on behalf of Cobalt
27 by Robert Osborne, a "Qualified
Person" as defined by 43-101.
The following are the ore reserves and mineral resources
(inclusive) for Ramu as at June 15,
2018, reported under the JORC Code. The report on reserves
and resources was prepared for and are the responsibility of Ramu
NiCo Management (MCC) Limited, the operator and manager of Ramu.
For reporting in a NI 43-101 format, the inferred resources are not
totaled with the measured and indicated mineral resources. The Ramu
technical report has been reviewed for scope and content of JORC
and NI 43-101 reporting by an independent qualified person on
behalf the Company.
In the following table note:
- Ni and Co grades shown to 1 decimal only. Totals are
rounded.
- Dry ore tonnes reflect -2mm economic portion of the recoverable
resource.
- Ore reserve based on US$12,000/t
nickel and US$48,501/t cobalt.
- 0.5% Nickel cut-off grade for the mineral resource and the ore
reserve.
Ore
Reserves
|
|
|
|
|
Nickel
|
Cobalt
|
|
|
|
(Mt)
|
|
(%)
|
(%)
|
|
|
|
|
|
|
|
Proven
|
|
|
24
|
|
0.9
|
0.1
|
Probable
|
|
|
33
|
|
0.9
|
0.1
|
Total
Reserves
|
|
|
56
|
|
0.9
|
0.1
|
|
|
|
|
|
|
|
Mineral
Resources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured
|
|
|
34
|
|
0.9
|
0.1
|
Indicated
|
|
|
42
|
|
0.9
|
0.1
|
Measured and
Indicated
|
|
|
76
|
|
0.9
|
0.1
|
|
|
|
|
|
|
|
Inferred
|
|
|
60
|
|
1.0
|
0.1
|
Forward-Looking Information
This news release contains certain information which
constitutes 'forward-looking statements' and 'forward-looking
information' within the meaning of applicable Canadian securities
laws. Forward-looking statements in this news release include,
without limitation: statements pertaining to estimates of mineral
resources and mineral reserves at Ramu; statements pertaining to
future production and mining costs at Ramu; and statements
pertaining to future prices of cobalt, nickel and other
commodities. Forward-looking statements involve known and unknown
risks and uncertainties, most of which are beyond the Company's
control. For more details on these and other risk factors see the
Company's most recent Annual Information Form on file with Canadian
securities regulatory authorities on SEDAR at www.sedar.com under
the heading "Risk Factors". Should one or more of the risks or
uncertainties underlying these forward-looking statements
materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results, performance or
achievements could vary materially from those expressed or implied
by the forward-looking statements. Accordingly, undue reliance
should not be placed on these forward-looking statements.
This news release also contains references to estimates of
mineral resources and mineral reserves. The estimation of mineral
resources is inherently uncertain and involves subjective judgments
about many relevant factors. Estimates of mineral reserves provide
more certainty but still involve similar subjective judgments.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The accuracy of any such estimates
is a function of the quantity and quality of available data, and of
the assumptions made and judgments used in engineering and
geological interpretation (including estimated future production
from the company's projects, the anticipated tonnages and grades
that will be mined and the estimated level of recovery that will be
realized), which may prove to be unreliable and depend, to a
certain extent, upon the analysis of drilling results and
statistical inferences that ultimately may prove to be inaccurate.
Mineral resource or mineral reserve estimates may have to be
re-estimated based on: (i) fluctuations in mineral prices; (ii)
results of drilling; (iii) metallurgical testing and other studies;
(iv) proposed mining operations, including dilution; (v) the
evaluation of mine plans subsequent to the date of any estimates
and/or changes in mine plans; (vi) the possible failure to receive
required permits, approvals and licences; and (vii) changes in law
or regulation.
The forward-looking statements contained herein are made as
of the date of this release and, other than as required by
applicable securities laws, the Company does not assume any
obligation to update or revise it to reflect new events or
circumstances. The forward-looking statements contained in
this release are expressly qualified by this cautionary
statement.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. No securities regulatory authority has
either approved or disapproved of the contents of this news
release.
Betty Joy LeBlanc, BA, MBA
Director, Corporate Communications
+1-604-828-0999
info@cobalt27.com
SOURCE Cobalt 27 Capital Corp