Canada Cobalt drills into visible cobalt, nickel and silver at Castle
Canada Cobalt drills into visible cobalt, nickel
and silver at Castle
COQUITLAM, BC
,
Oct. 25, 2019
/CNW/ - Canada Cobalt Works Inc. (TSXV: CCW) (OTC:
CCWOF) (
Frankfurt
: 4T9B) (the "Company" or "Canada Cobalt") is pleased to provide the following
corporate update.
Underground Drilling
Multi-directional diamond drilling on the first level of the Castle Silver-Cobalt mine is expanding the
footprint of massive cobalt, nickel and silver mineralization near the adit entrance where drilling last
year returned high grades (refer to
Nov. 2, 2018
news release).
A total of 13 drill holes have already been completed in the adit entrance area with visible
mineralization noted in a majority of them. Niton XRF (X-ray fluorescence) analysis of these new
holes is consistent with values reported
Nov. 2, 2018
, in sections over a broad area as drilling fans
out to fully test the continuity of the main vein. This near vertical vein extends for a minimum of 80
meters from the adit entrance and also features sub parallel veins.
Multiple prospective areas of the first level, which extends for hundreds of meters east-west and
north-south, will be tested during this second phase of underground drilling including the newly-
discovered "Jackpot" zone near Shaft No. 3 that was inaccessible last year.
Cobalt grades intersected in the Castle mine (refer to
Feb. 19, 2019
news release), previously only
exploited for its native silver, are considered very high in a global context. From the same Castle
waste material, Canada Cobalt has poured initial silver dore bars (refer to
Oct. 16, 2019
news
release) while its proprietary and environmentally friendly Re-2OX Process has demonstrated the
ability to remove 99% of the arsenic to produce a battery grade cobalt sulphate (refer to
Aug. 15,
2018
news release).
Canada Cobalt is now permitted to carry out underground blasting at Castle which will greatly assist
the company's exploration efforts during this new phase of drilling.
Castle East Update
Compelling new geological interpretations are emerging regarding deposit potential east and
northeast of Castle and the Gowganda Camp's two other past producing high-grade silver mines,
Capitol and Siscoe, all located within a radius of less than two kilometers. These mines were at the
narrow, shallow edge of the
Nipissing
diabase, and the Archean rocks to the east and the deeper
parts of the
Nipissing
diabase (both recently shown to be very fertile) were never systematically
explored.
Canada Cobalt's surface drilling in the summer and fall of 2018 outlined a robust near-surface
hydrothermal system with multi-gram gold-bearing quartz veins and a halo of disseminated nickel
and copper mineralization in Archean volcanics in between the Siscoe mine, several hundred meters
to the west, and a 2011 drill hole that has yet to be followed up on. This drill hole pushed through
the Archean volcanics and entered the
Nipissing
diabase (gabbro), cutting a remarkable
40,944
grams per tonne silver (
1,194 ounces per ton
) as well as 0.91% cobalt over 0.45 meters within a
broader core length of 3.1 meters grading
6,476
g/t silver (
189 ounces per ton
) and 0.14% cobalt
(refer to
Aug. 25, 2011
news release, Granada Gold) at a vertical depth of approximately 420
meters.
(The 2011 drilling and drill core sampling, including the quality assurance/quality control, were
supervised by Mr.
Doug Robinson
, P.Eng. and project geologist. Core was sent to Accurassay
Laboratory in
Timmins, Ontario
, for sample preparation and to their
Thunder Bay
laboratory for
analysis. Silver was assayed by fire assay with AA check with additional pulp and metallics done on
samples where significant silver was identified. Analytical accuracy and precision were monitored by
the analysis of reagent blanks and reference materials at the lab. Quality control was further
assured by the insertion of blind certified standard reference material and blanks into the sample
stream at regular intervals by Mr. Robinson in order to independently assess analytical accuracy.)
Plans are underway for fresh drilling at Castle East to follow up on the high-grade discovery
potential of this area. A comprehensive regional update, including a summary of last year's results,
will be provided in early November followed by planned new drilling.
Voluntary Environmental Rehab at Castle And Beaver
As an environmental leader in the Northern Ontario Silver-Cobalt Camp, Canada Cobalt is
proceeding with voluntary rehabilitation at both the Castle and Beaver mines. These efforts are
focused on areas where historic high-grade mining (stamp mills) left behind material believed to be
metal and arsenic rich. Canada Cobalt views this opportunity for shareholders to be significant.
PolyMet Facility Acquisition
Canada Cobalt's 90-day due diligence for the proposed acquisition of privately-held PolyMet
Resources Inc. (see
Oct. 10, 2019
news release) is proceeding positively and ahead of schedule.
As contemplated through the binding LOI, completed at a strategic time in the precious metal cycle,
the PolyMet Lab and mineral processing facility in the town of Cobalt vertically integrates Canada
Cobalt and allows for multiple potential near-term revenue streams (bullion pouring, bulk sampling,
commercial assaying and e-waste). This facility would be the new headquarters for Canada Cobalt
and its Re-2OX Process.
Private Placement
Further to the company's
October 1
, news release, Canada Cobalt is in the process of successfully
completing its
$1 million
private placement at
35 cents
per unit, and first closing is anticipated in the
coming days.
Qualified Person
The technical information in this news release was prepared under the supervision of
Frank J. Basa
,
P.Eng., Canada Cobalt's President and Chief Executive Officer, who is a member of Professional
Engineers Ontario and a qualified person in accordance with National Instrument 43-101.
About Canada Cobalt Works Inc.
Canada Cobalt has 100% ownership of the Castle mine and the 78 sq. km 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.
"Frank J. Basa"
Frank J. Basa
, P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release. This news release may contain forward-looking statements including but not limited to
comments regarding the timing and content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such statements.
SOURCE
Canada Cobalt Works Inc.
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http://www.newswire.ca/en/releases/archive/October2019/25/c4708.html
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For further information:
Frank J. Basa, P.Eng., President and CEO, 1-416-625-2342; Marc
Bamber, Director, [email protected], +44-7725-960939
CO: Canada Cobalt Works Inc.
CNW 17:36e 25-OCT-19