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Canada Silver Cobalt Works Inc
Symbol CCW
Shares Issued 93,518,988
Close 2020-06-10 C$ 0.52
Recent Sedar Documents

Canada Silver to drill wedge holes at Castle East

2020-06-11 07:12 ET - News Release

Mr. Frank Basa reports

CANADA SILVER COBALT EXTENDS ROBINSON ZONE HIGH-GRADE SILVER DISCOVERY

Phase 2 drilling at Canada Silver Cobalt Works Inc.'s Castle East has quickly expanded the potential scale of the Robinson zone high-grade silver discovery, open in all directions.

The latest drill hole, CS-20-24, further demonstrates continuity of vein structures over an increasingly broad area consistent with a robust mineralizing event immediately east of three past producers in Northern Ontario's Gowganda camp.

Highlights

  • CS-20-24, the just-completed first hole of phase 2, was collared 200 metres northwest of CS-20-22 and intersected three separate visually well-mineralized vein structures at shallower levels including native silver and cobalt arsenides within a five-metre zone (core interval) approximately 47 metres above the Robinson zone.
  • CS-20-24 is interpreted to be an extension of the original vein confirmed through historical drill hole CA-11-08 in addition to Canada Silver Cobalt's recent follow-up wedge holes.
  • A network of high-grade native silver veins has now been traced over a vertical distance of approximately 144 metres from the middle intersection in CS-20-24, at a vertical depth of 371 metres, to the second deeper intercept in CS-20-22 (representing a new vein) near the lower contact of the diabase with the Archean rocks.

Matt Halliday, Canada Silver Cobalt vice-president of exploration, commented: "With the first hole of phase 2 we've already opened up much more room for expansion of the very high-grade Robinson zone, and many more high-priority targets remain to be drilled. This appears to be a pregnant system with strong potential for significant additional lateral and vertical extent given the increasing success we are having at hitting these narrow but exceptionally high-grade vein structures from surface. We eagerly anticipate the first batch of assays from CS-20-24.

"Our research shows that the Northern Ontario silver-cobalt camp hasn't seen anything like this in at least several decades -- a grassroots discovery of very unusual silver grades, comparable with those that helped make this region the birthplace of Canadian hard-rock mining in the early 1900s," Mr. Halliday continued. "In addition, core from CS-20-24 shows promise for gold mineralization in the 326-metre Archean package drilled into above the Nipissing diabase, nearly half a kilometre northeast of the high-grade gold intercept in CS-19-19 (refer to March 2, 2020, news release)."

Next drill holes

Geologists are now preparing to drill a series of wedge holes, commencing early next week, from CS-20-22 and CS-20-24 in an attempt to follow the trail of native silver veins, similar to the strategy last December that also involved the successful use of down hole camera technology. GoldMinds Geoservices' custom-built down hole camera has been deployed once again and has provided valuable information with regard to CS-20-22 and the orientation of vein structures. It will also be used in the coming days to evaluate the vein structures intersected in CS-20-24.

Robinson zone inferred resource

Notably, as disclosed in a maiden resource estimate May 28, 2020, zones 1A and 1B of the Robinson zone entering phase 2 had an average silver grade of 8,582 grams per tonne (250 ounces/ton) in a combined 27,400 tonnes of material for a total of 7.56 million inferred ounces of silver using a cut-off grade of 258 g/t AgEq (silver equivalent) (mineral resources that are not mineral reserves do not have demonstrated economic viability). This resource estimate did not include the second vein discovered in CS-20-22.

Gold target above the diabase

Starting 40 metres down hole and continuing to 368 metres, CS-20-24 intersected multiple potential gold-bearing quartz-carbonate multigenerational veins with sulphide mineralization and intense alteration in the Archean package above the Nipissing diabase. Arsenopyrite was also noted in feldspar porphyry.

As reported by Canada Silver Cobalt March 2, 2020, the last drill hole that targeted gold mineralization at Castle East (CS-19-19) intersected 4.3 g/t Au over four metres and 1.5 g/t over 12.5 metres within a 30-metre mineralized zone (core length, true width unknown at this time) grading 0.70 g/t Au (vertical depth approximately 240 metres). This broad interval included one metre that returned 15.2 g/t Au. This early-stage gold discovery is approximately 460 metres southwest of the visually encouraging zones encountered in CS-20-24. The potential relationship between the two areas is being investigated as geologists await assays for this latest hole.

Castle property location

The Castle property is 15 kilometres east of Pan American Silver's Juby gold deposit, 30 km due south of Alamos Gold's Young-Davidson mine, 75 km southwest of Kirkland Lake Gold's Macassa complex, 80 km northwest of CCW's Temiskaming testing lab/processing facility in the town of Cobalt, and 100 km southeast of new gold discoveries in the Timmins West area.

Quality assurance/quality control

Castle East core samples were collected using a 0.3-metre minimum length and 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 split 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. Where silver was visually and significantly present, a pulp-metallic analysis on full sample was requested for the silver and gold assays where the entire sample is 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) was run using geochemical analysis with AA finish for silver, gold, copper, nickel and cobalt. The entire plus-200-mesh (coarse) fraction was analyzed using gravimetric processes (fire assay) for both Ag and Au to provide a weighted average assay for the entire sample.

Swastika Laboratories is an ISO 17025-certified lab independent of Canada Silver Cobalt.

Qualified person

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

About Canada Silver Cobalt Works Inc.

Canada Silver Cobalt's flagship Castle mine and 78 square km Castle property features strong exploration upside for silver, cobalt, nickel, gold and copper in the prolific past-producing Gowganda high-grade silver district of Northern Ontario. With underground access at Castle, a pilot plant to produce cobalt-rich gravity concentrates on site, a processing facility (TTL Laboratories) in the town of Cobalt, 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 Silver Cobalt is strategically positioned to become a Canadian leader in the silver-cobalt space.

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