Scientific Metals Corp. ("STM" or the "Company") (TSX VENTURE:STM)(FRANKFURT:26X)(OTCQB:SCTFD) is pleased to announce that, subsequent to the closing of its oversubscribed $2.5 million private placement, the Company is finalizing its 2017 exploration plans and work contracts, and is preparing for mobilization of work crews to commence exploratory work.
The Company plans to take full advantage of the advanced stage of exploration at Iron Creek as a result of significant work completed by previous workers. All work will be conducted on the patented lode mining claims which cover the previously identified historic estimates (see the Company's news release dated September 7, 2016). Investigating these claims significantly reduces permitting requirements for exploration programs.
First, the Company plans to rehabilitate the portals leading to three underground tunnels which currently have a combined length of 1,500 feet and access the mineralized zones. The Company benefits significantly from this underground access to the mineralized zones already evident. When these underground workings have been rehabilitated, the Company plans to conduct extensive underground sampling and some underground drilling, with plans to extract a bulk sample for metallurgical testing.
Second, during the course of 2017, the Company plans to conduct surface core drilling on the patented lode mining claims, targeting the known mineralized zones. The objective of this drilling will be to confirm the previously identified historic estimates of cobalt mineralization, and to explore for extensions to these zones. The Company also plans to conduct geophysical surveys over the known mineralized zones to select the most appropriate method to assist in locating drill targets in previously unexplored areas. As previously announced, these historic estimates(which do not do not use categories that conform to current CIM Definition Standards on Mineral Resources and Mineral Reserves as outlined in National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") ), contain 1,279,000 tons grading an average of 0.59% cobalt (see the Company's news release dated September 7, 2016). The Company has the advantage of utilizing the results of the 30,000 feet of drilling that identified the historic estimates.
Wayne Tisdale, CEO of the Company commented: "We look forward to confirming and expanding upon the historical workings on this project. With cobalt currently reaching new 52 week highs along with mounting demand for a safe, secure and ethical supply of cobalt, we feel it is the opportune time to aggressively explore our flagship Iron Creek Cobalt project."
Tisdale added, "With the Trump administration's emphasis on providing raw materials for electric batteries sourced in the USA, there will be an ever-increasing emphasis on developing projects such as the Iron Creek Cobalt. We expect that companies such as Tesla, GM, Apple and others will be forced to disclose the ethical shortcomings in their supply chain and source safe, secure and home grown materials for their phone, car and home batteries."
The Company is treating the cobalt tonnage and grade estimates above as historical estimates. The historical estimates do not use categories that conform to current CIM Definition Standards on Mineral Resources and Mineral Reserves as outlined in NI 43-101 and have not been redefined to conform to current CIM Definition Standards. The estimates were prepared in the 1980s prior to the adoption and implementation of NI 43-101. The report prepared by Noranda Exploration, Inc. does not detail cut-off grades and metal prices used to estimate the historical mineralization and used a tonnage factor of 11 cubic feet per ton. A qualified person has not, to date, classified the historical estimates as current mineral resources and the Company is not treating the historical estimates as such. More work, including, but not limited to, drilling, will be required to conform the estimates to current CIM Definition Standards. Investors are cautioned that the historical estimates do not mean or imply that economic deposits exist on the Iron Creek property. The Company has not undertaken any independent investigation of the historical estimates or other information contained in this press release nor has it independently analyzed the results of the previous exploration work in order to verify the accuracy of the information.
Mr. Garry Clark, P. Geo., of Clark Exploration Consulting, is the "qualified person" as defined in NI 43-101, who has reviewed and approved the technical content in this press release.