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Canada Cobalt Works Inc
Symbol CCW
Shares Issued 83,792,227
Close 2019-12-12 C$ 0.42
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Canada Cobalt finds Ag mineralization at Castle East

2019-12-12 20:33 ET - News Release

Mr. Frank Basa reports

CANADA COBALT INTERSECTS MASSIVE SILVER AS CASTLE EAST DISCOVERY BUILDS OUT

Canada Cobalt Works Inc.'s initial and continuing follow-up drilling at the Castle East Robinson zone high-grade silver discovery has intersected massive native silver mineralization over a wider vein width updip from drill hole CA-11-08, further supporting the potential for a rich new silver-cobalt system in the heart of a basin area immediately adjacent to three past producers in the prolific Gowganda camp.

Following four successful short wedge holes that provided important initial pierce points into this northwest-southeast-striking and southwest-dipping vein structure, Canada Cobalt has just commenced a program of new drill holes from surface aimed in part at determining the full extent of this highly mineralized shoot. The deposit model and history of the camp, and the broader Northern Ontario silver-cobalt district, show that these narrow but unusually rich vein shoots (generally one to six inches in true width and in rare cases up to approximately 12 inches in true width) can extend for tens or even hundreds of feet (pinching and swelling). They are typically surrounded by strongly mineralized wall rock and often within a network of closely spaced parallel veins and veinlets in addition to silver-filled fractures.

The Robinson zone discovery is unique in the district as it is a grassroots find of a potential blind deposit aided by geophysics (induced polarization surveys) and a custom-built high-technology downhole camera deployed by GoldMines Geoservices, which is managing the current drill program.

Drilling highlights:

  • Wedge hole CS-19-08-W01 intersected a visually highly mineralized core interval of 4.65 metres (15.25 feet) approximately 10 metres above and west of CA-11-08. Significantly, this interval includes a large vein of 20 centimetres (eight inches) in estimated true width of intense native silver, pervasive carbonate alteration and a visually higher silver to calcite ratio than CA-11-08, which returned 40,944 grams per tonne (1,194 ounces per ton) silver over an estimated true width of five to seven cm (two to 2.5 inches) at a vertical depth of approximately 430 metres.
  • The shoot of high-grade mineralization within the Robinson zone discovery vein is now believed to extend for at least 15 metres (49.2 feet) and was not delimited in any way through the four wedge holes that each intersected multiple veins and silver-filled fractures.
  • Core from the first four wedge holes has been split, and some samples have already been sent for assaying (assays from the first wedge hole are possible prior to Christmas).

Doug Robinson, PEng, a Canada Cobalt consultant and a leading authority on silver-cobalt deposits in the Northern Ontario silver-cobalt district, commented: "I've always believed there were more castles at Castle. History shows that these richly mineralized shoots are never found in isolation. In this case, modern technology has opened a whole new domain of exploration for Canada Cobalt. What was understandably missed by historic miners and explorers even 20 or 40 years ago is today's big opportunity in a region proven to have very strong metal endowment as the birthplace of Canadian hardrock mining."

Additional highlights:

  • The Robinson Discovery zone vein shoot has been found just below the middle of the Nipissing diabase at underexplored Castle East. The upper and lower portions of the Nipissing diabase in this part of the 78-square-kilometre property have never been systematically tested, reinforcing the potential for additional deposits beyond the three main mines in the Gowganda camp that were very active high-grade silver producers last century.
  • The Robinson zone discovery is 1.9 kilometres east of Castle shaft No. 3 and less than one kilometre east of the historical workings at the Capitol and Siscoe (Miller Lake O'Brien) mines.
  • The deposits in the Gowganda camp are associated with low-angle faults, and those low-angle faults are believed to extend to the Robinson zone and beyond.
  • Drilling continues until a few days prior to Christmas when crews will take a short break and then resume drilling during the first week of January. All-in costs for winter drilling are below industry average at approximately $175 per metre.

Corporate update

Matt Halliday commences his duties as vice-president, exploration, for Canada Cobalt beginning Dec. 16 (refer to the Nov. 18, 2019, news release). He officially joins Canada Cobalt from Kirkland Lake Gold, where he has been serving as resource geologist.

Mr. Halliday will guide Canada Cobalt's expanded underground and regional exploration programs in addition to playing an important role at CCW PolyMet in an acquisition that is expected to close prior to year-end.

Quality control/assurance

The drill program and sampling protocol are being managed by geologists from GoldMinds Geoservices. Holes CS-19-08-W01 to W04 were wedges drilled off the historical CA-11-08 hole. The original hole was reopened, a modern gyro survey was completed to confirm the location of the hole at depth and then the wedges were drilled from different depths using NQ diameter drill core. Samples were collected using a 0.3-metre minimum length at a one-metre maximum length. Drill core recovery averaged 95 per cent. Two quality control samples (blank and standards) were inserted into each batch of 20 samples. The drill core was sawn with one-half of the sawn core placed in a plastic bag with the sample tag and sealed, while the second half was returned to the core box for storage on site. For the high-grade intercepts, only one-quarter of the core has been sent for assaying to Swastika Laboratories in Swastika, Ont. Where silver was visually and significantly present, a pulp-metallic analysis was requested for the silver assays, where the entire sample will be dried, weighed and crushed over 95 per cent, then fully pulverized and passed through a 200-mesh screen to create a plus-200-mesh fraction (metallics) and a minus-200-mesh fraction (pulp). The minus-200-mesh fraction (fines) will be run using geochemical analysis with AA finish for silver, gold, copper, nickel and cobalt. The entire plus-200-mesh (coarse) fraction will be analyzed using gravimetric processes (fire assay) for both Ag and Au to provide a weighted-average assay for the entire sample.

Qualified person

The technical information in this news release was prepared under the supervision of Merouane Rachidi, PhD, PGeo (PGO, APEGNB and OGQ), of GoldMinds Geoservices, a qualified person in accordance with National Instrument 43-101.

About Canada Cobalt Works Inc.

Canada Cobalt has 100-per-cent ownership of the Castle mine and the 78-square-kilometre Castle property with strong exploration upside in the prolific past-producing Gowganda high-grade silver camp of Northern Ontario. With underground access at Castle, a pilot plant to produce cobalt-rich gravity concentrates on site and a proprietary hydrometallurgical process known as Re-2OX for the creation of technical-grade cobalt sulphate, as well as nickel-manganese-cobalt (NMC) formulations, Canada Cobalt is strategically positioned to become a vertically integrated North American leader in cobalt extraction and recovery while it also exploits a powerful new silver-gold market cycle.

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