Redcastle is next to First Cobalt’s Iron Creek project and east of the Toronto-based miner’s Ruby Zone cobalt-copper prospect.
Earn-in agreement into Phoenix Copper’s Redcastle asset increases the company’s land position in Idaho to over 1,820 hectares.
“We believe this area shows great promise for cobalt and copper mineralization, which would complement our strategy of expanding the Iron Creek deposit and its extensions,” First Cobalt’s president and CEO, Trent Mell, said in the statement.
Phoenix Copper said the earn-in at Redcastle would enable it to focus on its base and precious metals Empire project, also in Idaho.
“This agreement, as well as the progress currently being made at our Empire mine, is supported by a strong macroeconomic environment for the materials required for sustainable energy transition,” Phoenix CEO Ryan McDermott said in a separate statement.
In its previous Idaho deal, First Cobalt increased its land position at Iron Creek by more than 100% by acquiring the West Fork property to the west for a combination of cash and shares.
Iron Creek has an indicated 2.2 million tonne resource at 0.26% cobalt and 0.61% copper, for 12.3 million pounds of cobalt and 29Mlb of copper.
It also has an inferred 2.7Mt at 0.22% cobalt and 0.68% copper for 12.7Mlb and 40Mlb respectively.
Refinery revamp
First Cobalt is looking to develop supply as it moves to commission the expansion of its cobalt refinery in Canada’s Ontario next year.
The company has said the project, which it is carrying out in partnership with mining and commodities trading giant Glencore (LON:GLEN), would help North America reduce its reliance on China.
The country dominates the supply chain for rechargeable lithium-ion batteries and also has two of the world’s top producers of the white metal — Tianqi Lithium and Ganfeng Lithium.
The US government has announced several initiatives to reduce reliance on imports of critical minerals such as cobalt. In April, the Department of Energy’s Critical Materials Institute announced it would give First Cobalt $600,000 over two years for research on mineral processing techniques for Iron Creek.
