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Canada Cobalt drills 1.5 m of 20,741 g/t Ag at Castle

2019-12-23 12:49 ET - News Release

Mr. Frank Basa reports

CANADA COBALT WORKS ANNOUNCES ASSAYS SHOW MASSIVE SILVER GRADES TOPPING CA-11-08 AS DISCOVERY BUILDS AT CASTLE EAST

Canada Cobalt Works Inc.'s partial assays from a visually strongly mineralized 4.65-metre core interval in the first wedge hole at the Robinson zone discovery at Castle East (refer to Dec. 12, 2019, news release) include 50,583.29 grams per tonne (g/t) silver (1,476 ounces per ton) from a 0.60-metre sample, in addition to cobalt, nickel and copper and 20,741 g/t silver (605 ounces per ton) over 1.5 metres.

Assays are still pending for 19 out of 22 samples from the first wedge hole, as well as 89 samples from the other three wedge holes. The drill program, applying technology that was never previously used at the Castle property, is now being carried out with deep holes from surface designed to extend this vein shoot and intersect multiple shoots in what increasingly appears to be a geologically very fertile area 600 metres to 1,900 metres east of three robust past producers.

Highlights:

  • Significantly, CS-19-08-W01 not only confirmed the grassroots discovery of a classic Northern Ontario silver-cobalt district-style vein shoot in this heavily underexplored part of the Nipissing diabase, but this first wedge hole has cut into an even richer and much wider part of the vein 10 metres above and west of the original discovery intercept (CA-11-08).
  • CS-19-08-WO1 returned 50,583.29 g/t silver (1,476 ounces per ton), 0.30 per cent cobalt, 0.71 per cent nickel and 0.21 per cent copper over 0.60 metre, higher in silver grade (by 9,639 grams, or 282 ounces per ton) than the best intercept in CA-11-08 (refer to Dec. 4, 2019, news release). In addition, the vein within the 0.60-metre interval in CS-19-08-W01 has a true width (20 centimetres (cm)) three to four times greater than the apparent same vein in CA-11-08. This is highly encouraging in terms of the potential strength, richness and extent of this northwest-southeast-striking and southwest-dipping vein initially intersected in CA-11-08 at a vertical depth of approximately 430 metres.
  • The second and third samples, outside the vein in CS-19-08-W01, returned 1,375 g/t silver and 422 g/t over 0.40 metre and 0.50 metre, respectively, in silver-filled fractures, providing an average of 20,741 g/t (605 ounces per ton) over the first 1.5 metres of core length assayed. Numbers are pending for the remaining 3.1 metres of the 4.65-metre interval in addition to other parts of the hole.
  • Grades and vein widths reflect what was mined historically in the Gowganda camp.

Matt Halliday, Canada Cobalt's newly appointed vice-president of exploration, stated: "The four wedge holes, plus the first deep hole that recently started from surface, confirm intense veining at this exciting new grassroots discovery in an historically productive camp just 75 kilometres from Kirkland Lake.

"Exploration is targeting one or more deposits at Castle East in the Nipissing diabase, with excellent gold potential in the Archean rocks above and below the diabase. We have assembled a powerful team equipped with state-of-the-art technology, including GoldMinds Geoservices' custom-built downhole camera, to unlock the full value of this prolific past-producing camp for Canada Cobalt," Mr. Halliday concluded.

Following a short Christmas-New Year's break for drill crews, drilling at the Robinson zone discovery will resume during the first week of January.

Initial assay results from underground drilling at the Castle mine are expected to be released during the week of Dec. 30, followed by another important update from Castle East.

Canada Cobalt management extends best wishes to shareholders for a Merry Christmas and happy holidays.

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 historic 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, 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 and gold assays where the entire sample will be dried, weighed and crushed over 95 per cent, then fully pulverized and passed through 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 silver and gold to provide a weighted average assay for the entire sample.

Swastika Laboratories is an ISO-certified lab independent of Canada Cobalt.

Qualified person

The technical information in this news release was prepared under the supervision of Merouane Rachidi, doctor of philosophy, professional geoscientist (APGO, 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.

We seek Safe Harbor.

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