Mr. Frank Basa reports
CANADA SILVER COBALT ENTERS INTO OPTION TO ACQUIRE A HIGH-GRADE NICKEL COPPER DISCOVERY
Canada Silver Cobalt Works Inc. has entered into an option agreement with MagNor Resources dated Oct. 26, 2020, whereby Canada Silver Cobalt may earn an undivided 100-per-cent interest, subject to a 2-per-cent net smelter return, in MagNor's B2 property in Quebec, Canada. The property has 12 claims totalling 670 hectares (6.7 square kilometres). The agreement is subject to TSX Venture Exchange acceptance.
Highlights of property
The north-northwest-south-southeast mineralized zone is traceable along strike over one kilometre and is open in all directions.
A stripped zone exposed a length of 35 metres of massive sulphides eight metres to 10 metres wide.
- A total of six grab samples were sent to ALS Laboratory in Val d'Or for analysis of a package of multielements. Assay results returned massive nickel-copper-cobalt mineralization:
- 1.05 per cent Ni, 0.13 per cent Cu, 0.10 per cent Co;
- 0.96 per cent Ni, 0.10 per cent Cu, 0.09 per cent Co; and
- 0.69 per cent Ni, 0.62 per cent Cu, 0.19 per cent Co.
- For the epithermal veinlets associated with quartz injections:
- 9.28 per cent Cu, 18.2 grams per tonne silver, 0.34 gram per tonne gold;
- 2.97 per cent Cu, 5.7 g/t Ag, 0.29 g/t Au, 0.10 per cent Ni.
- Anomalous values in titanium (1.1 per cent), phosphorus (0.45 per cent) and manganese (0.12 per cent) in mylonitic ferro-gabbro with 0.14 per cent Cu associated with mineralization in pyrrhotite, pyrite and chalcopyrite stringers (five per cent to 10 per cent).
The B2 Ni-Cu property contains new showings for Ni-Cu-Co that were discovered in August, 2019, by Alain Berclaz and Frederic Bergeron. It is located in NTS 22E11 of the Saguenay Lac-St-Jean region of Quebec. The property is easily accessed by well-maintained logging roads and forest trails from the KM92 of the Passes road (R250 and R251).
"With the increasing demand of lithium ion batteries for electric vehicles, optioning this property fits well within the company's battery metal development program," said Frank J. Basa, PEng, chief executive officer. "With high-grade near-surface mineralization, the company has mobilized a geological team to the site to plan an exploration program."
Mineralization on the property is of three types:
- Magmatic Ni-Cu-Co associated with anorthosite consisting of massive sulphides up to five metres wide, composed of 65 per cent to 90 per cent coarse-grained pyrrhotite (-pentlandite), pyrite, chalcopyrite and 10 per cent to 30 per cent host rock fragments.
- Magmatic iron (-titanium-phosphorus-vanadium) associated with anorthosite, leuco-gabbro, gabbronorite, norite and pyroxenite consisting of up to five-metre thick layers, lenses and veins of massive oxides (mainly magnetite).
- Epithermal Cu-Ag-Au associated with late pegmatitic quartz veins and monzogranite consisting of up to one-metre thick, semi-massive, brecciated stockwork, veinlets and stringers of pyrite, chalcopyrite and bornite.
Terms of the agreement
Pursuant to the terms of the agreement, the company may exercise the option with MagNor as follows:
- On closing, making a payment of $62,500;
- 24 months from closing, making a payment of $62,500;
- 36 months from closing, making a payment of $62,500; and
- 36 months from closing, incurring an aggregate of $100,000 in exploration expenditures on the Ni-Cu property.
Payment can be made in cash or through the issuance of Canada Silver Cobalt shares at a price per common share equal to the volume weighted average trading price of the company's shares on the exchange for the 10 trading days immediately preceding the closing date, at the option of the company.
All securities issued in connection with this transaction will be subject to a four-month-and-a-day hold period in accordance with applicable securities laws.
The technical information in this news release has been reviewed by Claude Duplessis, PEng, GoldMinds Geoservices Inc., member of Quebec Order of Engineers and a qualified person in accordance with National Instrument 43-101 standards.
About Canada Silver Cobalt Works Inc.
Canada Silver Cobalt released the first-ever resource in the Gowganda camp and greater Cobalt camp in May, 2020. A total of 7.56 million ounces of silver in inferred resources, comprising very high-grade silver (8,582 grams per tonne uncut or 250.2 ounces per ton) in 27,400 tonnes of material from two sections (1A and 1B) of the Robinson zone beginning at a vertical depth of approximately 400 metres was calculated. The discovery remains open in all directions (1A and 1B are approximately 800 metres from the east-trending Capitol Mine workings) (mineral resources that are not mineral reserves do not have demonstrated economic viability) (refer to Canada Silver Cobalt Works press release May 28, 2020). Canada Silver Cobalt's flagship Castle mine and 78-square-kilometre Castle property feature 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 formulations, Canada Silver Cobalt is strategically positioned to become a Canadian leader in the silver-cobalt space.
We seek Safe Harbor.
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