First Cobalt (TSXV: FCC; US-OTC: FTSSF) said today that it has begun drilling at its Iron Creek cobalt-copper project in Idaho, seeking to double production as higher demand for electric vehicles boosted prices for the metals used in the batteries.
North American EV sales reached 325,000 units in the first half of 2021, up 128% year-on-year from 142,000 units in the corresponding period 2020.
Nearly 100% of the vehicles sold in North America so far in 2021 were delivered with cobalt-bearing NCM and NCA lithium-ion batteries.
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Iron Creek has an indicated resource of 2.2 million tonne grading 0.26% cobalt and 0.61% copper for 12.3 million pounds of cobalt and 29 million lb. of copper.
It also has inferred resources of 2.7 million tonnes grading 0.22% cobalt and 0.68% copper for 12.7 million pounds of cobalt and 40 million lb. copper.
According to the company, its US$3.1 million budget will include 4,000 metres of drilling to test extensions to the deposit.
The drill campaign follows meetings in Washington, DC, between First Cobalt executives and senior elected officials, including the Idaho delegation to Congress.
Iron Creek is one of only two primary cobalt resource projects in the United States.
The company's previous drill campaign expanded the resource along strike to over 900 metres and down-dip extensions to over 600 metres.
First Cobalt plans to drill over 4,000 meters and expects to receive first results by the end of the fourth quarter of this year.
"Assuming drill results are as expected in 2021, we anticipate an even larger drill campaign in 2022, to fast-track our plans for domestic mine supply," said president and CEO Trent Mell.
At presstime in Toronto First Cobalt was trading at $0.27 per share within a 52-week trading range of $0.115 and $0.46 per share.
The junior has about 144.3 million common shares outstanding for a market cap of about $134 million.