CANADA SILVER COBAL T WORKS’ NEW GOLD PROPERTY NOW TOT ALS 810 HECT ARES WITH 610 HECT ARE ACQUISITION A second property acquisition in the Eby-Otto Township increases the Company’s land package to 810 hectares of prospective land south-west Kirkland Lake Gold’s Macassa Mine
CANADA SILVER COBAL T WORKS’ NEW GOLD PROPERTY NOW
TOT ALS 810 HECT ARES WITH 610 HECT ARE ACQUISITION
A second property acquisition in the Eby-Otto Township increases the Company’s land
package to 810 hectares of prospective land south-west Kirkland Lake Gold’s Macassa Mine
and located is within the most prolific gold-bearing area in Northern Ontario.
Coquitlam, BC, August 30, 2021 - Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt:
4T9B) (the "Company" or "Canada Silver Cobalt") is pleased to announce that it has entered into an Option
Agreement dated August 15, 2021, to acquire the 610 hectares, known as the “Tinney” property (the
“Property”) from a group of highly renowned prospectors ("Claim Holders").
Acquisition Highlights:
Property lies within the Abitibi Greenstone Belt in the prolific Kirkland Lake district and is located
approximately 7 km south-west of the high-grade Macassa Gold Mine currently operated by Kirkland
Lake Gold.
In addition, the 610 hectares included in this acquisition are adjacent to the 200 hectares recently
optioned on August 3, 2021, from geologist Doug Robinson and partners. This increases the total area
of the land package four-fold to a grand total of 810 hectares.
The acquisition provides further expansion of the Company’s precious metals portfolio into the well-
established Kirkland Lake Gold camp located on the prolific Larder Lake-Cadillac Break.
Select claims have valid exploration permits that will allow a combination of mechanized drilling
and/or surface geophysics (shown on Figure 1 and Figure 2). A well-organized exploration plan is
currently being developed for the 2022 field season which may include geological mapping, the
stripping of outcrops, and channel sampling. Results of this field season will dictate the drill program
to follow on the property.
Company President, Matt Halliday, P.Geo. stated “These new gold properties have our geologists very excited
about the 2022 field season. There are multiple geological features that are of extreme interest including three
major fault structures: the Larder Lake Cadillac Deformation Zone (also referred to as Break or Fault Zone)
1km to the north, the Amikougami Creek Fault 5km to the east, and over 2km of the Eby-Otto Fault trending
north-easterly through the property. The property is permit ready, we just need to put in the work.”
The structural zone surrounding the Eby-Otto Fault is marked by iron carbonate, silicification, chloritization,
and large pyrite-mineralized zones up to 200 meters wide. According to OGS open file report OFR6184
quoting Meyer et el 2005, there are several gold deposits in the area that show similarities such as the
Holloway Mine “Lightning Zone”, the Kerr Mine “Flow Ore”, and the “D Zone” at the Cheminis Mine. While
these orebodies are not significant at surface, the evidence exists in the form of carbonatization, silicification,
pyrite mineralization, and sporadic gold mineralization similar to what is encountered on these claims. In
addition, geochemically anomalous gold and copper values have been recorded along the length of the Eby-
Otto Fault as showings, pits, and small-scale shafts with values up to 5.8 g/t Au over 1.5m (0.17 oz/ton over
5’, AFRI 2.57388 2016). Further anomalous showings of gold, copper, and platinum occur within the mafic
metavolcanics, mafic metasediments, and syenite intrusions scattered across the combined property.
Canada Silver Cobalt Works Inc.
3028 Quadra Court
Coquitlam, B.C., V3B 5X6
CanadaSilverCobaltWorks.com
Page 2 of 4
Figure 1: Location of newly acquired Tinney claims and previously acquired Eby-Otto claims in addition to
showing proximity to Kirkland Lake Gold’s Macassa Mine.
Figure 2: A closer look at the total property package showing the simplified regional geology, location of
preliminary channel samples (news releases August 3, 2021), as well as three major faults of interest.
Page 3 of 4
Details of the Property
The Eby-Otto and Tinney area was originally discovered by silver prospectors originating from the town of
Cobalt prospecting for silver. But instead of silver, they found occurrences of gold near the shore of Otto
Lake in 1906. This kickstarted the discovery of many gold mines in the area. Since then, there has been
sporadic activity by various prospectors, geologists, and exploration companies exploring primarily for
gold. Over the years there has been small scale trenching, pits, shafts, and small mining operations with low
grade to anomalous values identified. This work has helped define the nature of the iron carbonate,
silicification, chloritization, and large pyrite mineralized zones.
As previously mentioned, the rocks in this claim package show certain parallels at surface to the Holloway
Mine, the Kerr Mine, and the Cheminis Mine. But it also shows similarities to the style of veins and host rocks
encountered at the Macassa Mine, which is characterized by finely disseminated pyrite, wide alteration zones,
and multiple generations of quartz veining and/or flooding. The Macassa Mine, which commenced operations
in 1933, has produced more than 5.2 million ounces of gold, has benefited from new discoveries within its
property over the years and still has one of the highest reserve grades in the world. The greater Kirkland Lake
camp, situated along the Larder-Lake Cadillac Break, has collectively produced over 74 million ounces of gold.
The property contains three large faults that are of interest. The Larder Lake Cadillac Deformation Zone is
one of the major gold-bearing deformation zones in the southern Abitibi subprovince. It hosts many gold
mines such as the Cheminis and Kerr Addison and has many gold-bearing subsidiary faults (or splays) such
as the “Main Break” (the dominant gold-bearing fault at the Macassa Mine) and the Eby-Otto Fault cutting
through the Eby-Otto and Tinney claim package. The Amikougami Creek Fault is an important structural
feature because it offsets certain gold-bearing faults including the ’04 Break at the Macassa Mine. To date,
there has been no major discovery to the west of the Amikougami Creek Fault. The Eby-Otto Fault is another
splay off the Larder Lake Cadillac Deformation Zone and there is strong potential for gold mineralization to
exist along strike and at depth when considering the major alteration zones, sulphides, and quartz veins
encountered on the property.
In addition, the adjacent Eby-Otto property was optioned to the company on August 3, 2021, from Doug
Robinson and partners. Doug is a highly respected geologist with an exceptional record of precious metal
discoveries over the past 50 years. He served as underground mine geologist for Agnico Eagle Mines in the
Greater Silver-Cobalt Camp in the 1980s and more recently as a geological consultant for Canada Silver Cobalt
Works’ Castle property. His work for us led to the major discovery of the exceptionally high-grade silver veins
at Castle East which led to the company’s first resource estimate. He will continue to work with the Company
as a consultant to further the exploration work on the properties.
Terms of the Acquisition
The Claim holders grant the option to Canada Silver Cobalt Works Inc. to acquire, over a period of 5 years,
100% of the Property in return for cash payments totalling $182,000, the issuance of 400,000 common
shares of Canada Silver Cobalt Works and incurring a total of $1.2 million in exploration expenditures on
the Property. In addition, the Claim Holders will retain a 3% royalty if Canada Silver Cobalt Works
completes the entire option. Canada Silver Cobalt Works will be the operator and will manage all
exploration work throughout the term of the option.
All shares issued are subject to a 4 month plus a day hold period in accordance with applicable securities
laws.
Qualified Person
The technical information in this news release was prepared under the supervision of Mr. Matthew Halliday,
P.Geo., (PGO) VP Exploration of Canada Silver Cobalt Works Inc., a qualified person in accordance with
National Instrument 43-101.
Page 4 of 4
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. This discovery has the highest silver
resource grade in the world, with recent drill intercepts of up to 89,853 grams/tonne silver (2,621 oz/ton
Ag). A drill program is underway to expand the size of the deposit with an update to the resource estimate
scheduled for Q1 2022.
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.
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 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.
“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 Services 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 which include, but are not limited to, 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,
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.