Canada Silver Cobal T Enters into LOI with Power Group Projects to Purchase Cobal T Area Properties
CANADA SILVER COBAL T ENTERS INTO LOI WITH
POWER GROUP PROJECTS TO PURCHASE COBAL T AREA PROPERTIES
Coquitlam, BC, May 2, 2022 - Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B)
(the "Company" or "Canada Silver Cobalt") announces that has entered into a non-binding letter of Intent
(“LOI”) dated April 20, 2022 with Power Group Projects Corp. (“PGP”) which contemplates a transaction
whereby PGP would sell its interest in specific Cobalt area properties (the “Property), located in Coleman,
Bucke and Lorrain Townships in the Larder Lake Mining Division of Ontario to the Company. The LOI is
subject to a 90-day exclusivity and due diligence period.
Under the terms of the LOI, the Company and PGP would enter into a formal agreement whereby the Company
would purchase a 100% interest, subject to a 2% NSR in specific PGP Properties and the data related to the
Property subject to a payment of $75,000 cash and the issuance of 300,000 shares of Canada Silver to PGP
upon closing the transaction. The transaction is subject to TSX Venture Exchange acceptance.
The Properties in question are comprised of 66 claims and 21 mining and surface rights patents totalling
approximately 1,000 hectares. Within the patented claims, the historic Smith Cobalt Mine sunk a shaft to a
depth of 452 feet in 1930’s where they worked 4 veins and produced over 500 pounds cobalt. The property
is adjacent to the past-producing Deer Horn Mine where over 2.5 million ounces silver and over 88,000
pounds cobalt, 150,000 pounds copper, and 30,000 pounds nickel were recovered between 1960 and 1965.
An additional million ounces of silver was estimated (but unconfirmed) to be produced from 1928 to 1942
(Silver-Cobalt-Calcite Vein Deposits of Ontario, Mineral Deposit Circular 010, Ontario Department of Mines,
A.O.Sergiades, 1968).
“The purpose of this transaction would be to further strengthen the Company’s battery metals portfolio and
provide an additional key land package in the Cobalt Camp. This region is extremely under-explored and has
experienced a long hiatus of mining in the area. Our technical team believes that this location has the necessary
geological indicators and historical success to host further cobalt deposits. Using modern technology and
knowledge gained from exploring satellite deposits proximal to existing mines, such as Castle East in
Gowganda, we believe that this property holds strong potential.” stated Gerhard Kiessling, Exploration
Manager.
Qualified person
The technical information in this news release was prepared under the supervision of Mr. Matthew Halliday,
P.Geo., (PGO), President, COO and VP Exploration of Canada Silver Cobalt Works Inc., a qualified person in
accordance with National Instrument 43-101.
About Canada Silver Cobalt Works Inc.
Canada Silver Cobalt Works Inc. recently discovered a major high-grade silver vein system at Castle East
located 1.5 km from its 100%-owned, past-producing Castle Mine near Gowganda in the prolific and world-
class silver-cobalt mining district of Northern Ontario. The Company has completed a 60,000m drill
program aimed at expanding the size of the deposit with an update to the resource estimate underway.
Canada Silver Cobalt Works Inc.
3028 Quadra Court
Coquitlam, B.C., V3B 5X6
CanadaSilverCobaltWorks.com
Page 2 of 2
In May 2020, based on a small initial drill program, the Company published the region’s first 43-101
resource estimate that contained a total of 7.56 million ounces of silver in Inferred resources, comprising
very high-grade silver (8,582 grams per tonne un-cut or 250.2 oz/ton) in 27,400 tonnes of material from
two sections (1A and 1B) of the Castle East Robinson Zone, beginning at a vertical depth of approximately
400 meters. Note that mineral resources that are not mineral reserves do not have demonstrated economic
viability. Please refer to Canada Silver Cobalt Works Press Release May 28, 2020, for the resource estimate.
Report reference: Rachidi, M. 2020, NI 43-101 Technical Report Mineral Resource Estimate for Castle East,
Robinson Zone, Ontario, Canada, with an effective date of May 28, 2020, and a signature date of July 13,
2020.
The Company also has 14 battery metals properties in Northern Quebec where it is currently drilling and
the prospective 1,000-hectare Eby-Otto gold property close to Agnico Eagle’s high-grade Macassa Mine near
Kirkland Lake, Ontario where it will be exploring in 2022.
Canada Silver Cobalt’s flagship silver-cobalt Castle mine and 78 sq. km Castle Property feature strong
exploration upside for silver, cobalt, nickel, gold, and copper. With underground access at the fully owned
Castle Mine, an exceptional high-grade silver discovery at Castle East, a pilot plant to produce cobalt-rich
gravity concentrates, 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. More information at www.canadasilvercobaltworks.com
“Frank J. Basa”
Frank J. Basa, P. Eng.
Chief Executive Officer
For further information, contact:
Frank J. Basa, P.Eng.
Chief Executive Officer
416-625-2342
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.
Caution Regarding Forward-Looking Statements
This news release may contain forward-looking statements which include, but are not limited to, comments regarding
future financings, if any, pursuant to the short form base shelf prospectus referred to above, and comments that involve
future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts,
comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of
mineral property titles, future financings, availability of funds, and others are forward-looking. Forward-looking
statements are not guarantees of future performance and actual results may vary materially from those statements.
General business conditions are factors that could cause actual results to vary materially from forward-looking
statements. A detailed discussion of the risk factors encountered by Canada Silver Cobalt is available in the Company’s
Annual Information Form dated July 19, 2021 for the fiscal year ended December 31, 2020 available under the Company’s
profile on SEDAR at www.sedar.com.