UPDATE - NextSource Materials Inc. NI 43-101 Compliant Sagar Property in Quebec has Potential to Host Significant Cobalt
TORONTO, June 12, 2018 (GLOBE NEWSWIRE) -- NextSource Materials Inc. (TSX:NEXT) (OTCQB:NSRCF) (“NextSource” or “the Company”) announces that its long held,100%-owned Sagar Property in the Romanet Horst/Labrador Trough region of Quebec, Canada has received renewed attention due to it hosting significant cobalt mineralization.
This development provides NextSource with the advantageous position of having now a third strategic battery material in its portfolio, adding to its advanced graphite and vanadium assets in Madagascar. Graphite and cobalt, along with lithium and nickel are regarded as the four “pillars” of battery technology. In addition, vanadium and flake graphite are the essential raw materials in Vanadium Redox Flow Batteries, which are now regarded by industry analysts as the leading battery technology for large-scale energy storage systems. Large-scale energy storage systems are capable of providing megawatt hour storage – a capability that is critical as the world transitions from fossil fuels to renewable energy and the accompanying need to harness intermittent renewable energy.
NDAs WITH MULTIPLE PARTIES
Several international parties have recently approached NextSource and expressed strong interest in the Sagar Property based exclusively on its cobalt. Non-Disclosure Agreements have been executed and due diligence has been initiated with each.
While the cobalt opportunity is a serendipitous development, the advancement of the Molo graphite project in Madagascar remains management’s priority. Over the coming weeks, management will evaluate the various options available to the Company and will determine the best option to potentially monetize this opportunity for its shareholders.
POTENTIAL TO HOST SIGNIFICANT COBALT MINERALIZATION
Prior to NextSource concentrating all of its exploration efforts in Madagascar in late 2007, the Company was focused on a comprehensive exploration program at its Sagar property that identified Iron-Oxide-Copper-Gold (IOCG) mineralization. While discovering gold and copper mineralization at Sagar, NextSource unintentionally discovered significant showings of cobalt. As gold and copper was the priority during the Company’s exploration program at that time, cobalt mineralization was never specifically targeted. Upon recent review of the drill core, grab samples and XRF results, the Sagar property has the potential to host significant mineralization of cobalt, which appears to be ubiquitous on the property.
An analogue to the Sagar property’s cobalt mineralization can be found in the Idaho Cobalt Belt, which has been identified as multistage hydrothermal mineralization in a magmatic-related IOCG system. The Iron Creek Cobalt Project, recently acquired by First Cobalt Corp. in their corporate acquisition of US Cobalt Inc., is found within the Idaho Cobalt Belt and has a non-compliant NI 43-101 estimate of 1.3M tons grading 0.59% cobalt (Co) and 0.3% copper (Cu). Prior to its acquisition of US Cobalt Inc., First Cobalt Corp. consolidated a number of brownfield and greenfield properties to form a ‘cobalt camp’ in the aptly-named town of Cobalt, Ontario.
With the above as context, NextSource’s Sagar property is as large (175 km2) as the amalgamated First Cobalt land position in Ontario, with grab samples containing up to 0.81% Co. Analysis of lithogeochemical samples at Sagar was conducted by Activation Laboratories Ltd. in Abitibi, Quebec.
QUALIFIED PERSONS
Mr. Craig Scherba, P.Geo., President and CEO, is the qualified person who reviewed and approved the technical information provided in this press release.
ABOUT NEXTSOURCE MATERIALS INC.
NextSource Materials Inc. is a mine development company based in Toronto, Canada, that is developing its 100%-owned Molo Graphite Project in southern Madagascar. The Molo Graphite Project is a feasibility-stage project and ranks as one of the largest-known, and highest quality, flake graphite deposits in the world, and the only project with SuperFlake® graphite.
For further information contact: +1.416.364.4911
Brent Nykoliation, Senior Vice President, Corporate Development at brent@nextsourcematerials.com or Craig Scherba, President and CEO at craig@nextsourcematerials.com
Safe Harbour: This press release contains statements that may constitute “forward-looking statements” within the meaning of applicable Canadian securities legislation. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are related to the information contained in this press release and the Company’s corporate presentation, which refers to the results of the cobalt assays and related exploration data, ability of the Sagar to potentially host cobalt mineralization, updated 2017 Feasibility Study, the results of the previous 2015 Molo Feasibility Study, funding of the development of the Molo Project, implementation and commencement of the build-out of Phase 1 and Phase 2 of the Molo Project, commencement of production at the Molo Project, commencement of procurement for mine infrastructure, the procurement of equipment to construct a mine, value engineering, any and all product test results and product analysis, and the permit application. These are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.