Canada Silver Cobalt Ramps Up Drilling at Castle East Discovery, Closes $1.2 Million Private Placement
Canada Silver Cobalt Ramps Up Drilling at
Castle East Discovery, Closes $1.2 Million
Private Placement
COQUITLAM, BC
,
June 15, 2020
/CNW/ - Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTC:
CCWOF) (
Frankfurt
: 4T9B) (the "Company" or "Canada Silver Cobalt") is pleased to announce the
Company has closed a flow-through private placement with strategic investors, raising gross
proceeds of
$1.2 million
by issuing 2,000,000 units at
$0.60
per flow-through unit (see details
below).
Proceeds of the flow-through private placement will be used to further ramp up drilling and
exploration over the coming weeks at the Company's 100%-owned Castle East high-grade silver
discovery in
Northern Ontario's
Gowganda Camp.
Wedge Holes Take Aim At Rich Second "Trunk" Potential
After extending the original Robinson Zone high-grade discovery vein 47 meters up-dip through drill
hole CS-20-24 from surface, geologists are now resuming a wedge hole strategy that proved to be
very effective last winter when the extremely rich Robinson Zone was first delineated, leading to a
maiden Inferred resource estimate (refer to
May 28, 2020
news release).
Starting today, an initial two wedge holes, drilled up-dip from different directions based on the
orientation of the vein, are targeting the extension of the high-grade vein discovered 95 meters
below the Robinson Zone in drill hole CS-20-22 that was not included in the resource estimate
(
8,339
g/t Ag or
243 oz/ton
over
0.35m
within
0.60m
of
4,971
g/t Ag or
145 oz/ton
, estimated at
50% to 70% true width). This vein, featuring native dendritic silver (large "rosettes"), has a different
texture to it than the vein in the original discovery, suggesting the Castle East mineralizing event was
driven by multiple phases.
Matt Halliday
, VP Exploration, commented: "It appears we have found the first two 'trunks' of this
system. Based on district geology we expect to find branches off these trunks and a possible
connection between these trunks through a network of veins.
"We have a very large area that has never been systematically drill tested, so the scale potential is
very significant. We know we have the grade with 7.6 million Inferred ounces at
250 oz/ton
in a very
concentrated area, ideal for accessing through a ramp," Halliday concluded.
Flow-Through Private Placement Details
Each FT Unit comprises one flow-through common share of the Company and one half of one share
purchase warrant. Each whole warrant will entitle the holder thereof to purchase one additional
common share of the Company at an exercise price of
$0.70
per share, for a period of two years
from closing, subject to TSX Venture Exchange ("Exchange") approval.
Canada Silver Cobalt has paid finder fees in the amount of
$94,000
and issued 156,665 finder
warrants in connection with the FT private placement. The finder's warrants are on the same terms
as the financing warrants. The finder fees are subject to Exchange approval.
All securities issued in connection with the private placement will be subject to a four–month and a
day hold period expiring on
October 16, 2020
, in accordance with applicable Canadian securities
laws.
Castle East In Perspective (CNW Group/Canada Silver Cobalt Works Inc.)
Qualified Person
The technical information in this news release was prepared under the supervision of Mr.
Merouane
Rachidi
, Ph.D., P.Geo., (APGO, APEGNB and OGQ) of GoldMinds Geoservices, a qualified person
in accordance with NI 43-101.
About Canada Silver Cobalt Works Inc.
Canada Silver Cobalt's flagship Castle mine and 78 sq. km Castle Property features strong
exploration upside for silver, cobalt, nickel, gold and copper in the prolific past producing
Gowganda
high-grade Silver-Cobalt District of
Northern Ontario
. With an important new discovery at Castle
East, underground access at the Castle mine, a processing facility (TTL Laboratories) in the nearby
town of Cobalt, a proprietary hydrometallurgical process known as Re-2OX, and the Beaver and
Violet properties, CCW is strategically positioned to become a Canadian leader in the silver-cobalt
space.
"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 Silver Cobalt Works Inc.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/June2020/15/c2542.html
%SEDAR: 00022378E
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 Silver Cobalt Works Inc.
CNW 14:29e 15-JUN-20