16:11:49 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Canada Silver Cobalt Works Inc
Symbol CCW
Shares Issued 234,434,682
Close 2023-02-03 C$ 0.09
Market Cap C$ 21,099,121
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Canada Silver finalizes LCT Li property option deal

2023-02-06 12:33 ET - News Release

Mr. Gerhard Kiessling reports

CANADA SILVER COBALT FINALIZES OPTION AGREEMENT FOR LCT LITHIUM PROPERTY NEAR POWER METALS CORP CASE LAKE PROJECT

Canada Silver Cobalt Works Inc. has finalized and signed the option agreement to acquire a large prospective LCT (lithium-cesium-tantalum) pegmatite land package near Power Metals' Case Lake project. The company has strategically staked a large package surrounding both the claims provided by the option agreement and claims adjacent to the Power Metals' Case Lake LCT lithium project for a total holding of close to 240 square kilometres. The property and project will be focused on exploring the LCT potential in the area.

Gerhard Kiessling, PGeo, vice-president, exploration, commented: "The location, size and proximity to existing lithium discoveries has our team excited to get started working on this property. With the demand for lithium increasing, we feel that we are in the right place at the right time, and are currently in the process of planning a substantial exploration program for the 2023 field season."

The claim package is contiguous with Power Metals' Case Lake lithium property to the east, where its West Joe dike and Main dike areas have identified some significant lithium grades such as 1.86 per cent Li2O (lithium oxide) over 19 metres in hole PWM-22-135, 1.58 per cent Li2O over 15 m in PWM-22-134 (see Power Metals news release dated Sept. 8, 2022), and 1.11 per cent Li2O and 2.15 per cent Cs2O (cesium oxide) over 6.84 m in hole PWM-22-128 (see Power Metals news release dated Aug. 19, 2022).

The property acquisition had focused on two important requirements. The first requirement was land that is both proximal to known mineralization (Power Metals' Case Lake) and land that contains pegmatites identified at surface from historical bedrock, quaternary or engineering maps. The second requirement was whether the property contained the contact between Archean sedimentary rock and Archean massive to foliated granodiorite. The property covers approximately 52 kilometres of this potentially critical contact. This age of rock and type of contact is a common environment for the occurrence of LCT-type pegmatites. As very limited historical work has been done on these claims and geological mapping is available only at a large scale, the property has very significant potential for discoveries of new pegmatite dikes -- the primary source of lithium in this geological environment. These pegmatitic dikes can contain spodumene which is a lithium aluminum inosilicate, otherwise known as a lithium ore mineral, and other elements such as cesium and tantalum that make up the ore minerals in LCT-type deposits.

The property acquisition consists of two separate agreements and four claim blocks. The company and optionor shall enter into two option agreements whereby the optionor shall grant to the company the right to acquire an undivided 100-per-cent interest in and to the properties as follows:

  1. Combined cash payment of $20,000 and issuance of 200,000 shares of the company to be paid to the optionor, upon TSX Venture Exchange approval to the definitive agreement;
  2. The company incurs a total exploration expenditure on the property in the amount $40,000 on or before the one-year anniversary of the definitive agreement, to earn an undivided 50-per-cent interest in the property;
  3. Combined cash payment of $40,000 and issuance of 400,000 shares of the company to the optionor by the one-year anniversary of the definitive agreement date;
  4. The company incurs a total exploration expenditure in the amount $80,000 on or before the second-year anniversary of the definitive agreement, to earn an undivided 100-per-cent interest in the property;
  5. Upon exercise of the option by the company, the company grants to the optionor a 2-per-cent net smelter return on each of the one-block and three-block properties and on claims within a two-kilometre area of influence from the perimeter of the three-block package as well as to certain Canada Silver claims in between and within a two-kilometre area of influence from the perimeter of the one-block property. The company retains the option to buy back 1 per cent of each NSR for $500,000;
  6. Upon the filing of a National Instrument 43-101-compliant resource estimate, where the resource is located within the area of interest, the company will issue 150,000 shares to the optionor if on the three-block property, or 50,000 shares if on the one-block property.

Qualified person

The technical information in this news release was approved and prepared under the supervision of Matthew Halliday, PGeo (PGO), president and chief operating officer of Canada Silver Cobalt Works, a qualified person accordance with National Instrument 43-101.

About Canada Silver Cobalt Works Inc.

Canada Silver Cobalt Works recently discovered a major high-grade silver vein system at Castle East located 1.5 km from its 100-per-cent-owned, past-producing Castle mine near Gowganda in the prolific and world-class silver-cobalt mining district of Northern Ontario. The company has completed a 60,000 m drill program aimed at expanding the size of the deposit with an update to the resource estimate under way.

We seek Safe Harbor.

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