Canada Silver Cobalt Resumes Drilling at Castle East High-Grade Silver Discovery
Canada Silver Cobalt Resumes Drilling at
Castle East High-Grade Silver Discovery
COQUITLAM, BC
,
May 29, 2020
/CNW/ - Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTC:
CCWOF) (
Frankfurt
: 4T9B) (the "Company" or "Canada Silver Cobalt") is pleased to announce a
major reinterpretation of the Gowganda Silver Camp as a new round of diamond drilling begins
(Phase 2) at the Castle East high-grade silver discovery, open in all directions.
Highlights:
Diamond drilling aims to build and upgrade the maiden Inferred mineral resource (see
May 28,
2020
news release) that includes
7.56
million ounces of silver in zones 1A and
1B
of the
Robinson Zone (27,400 tonnes @
8,582
g/t Ag
or
250
oz/ton
at an average cut-off grade of
258
g/t AgEq);
Only a fraction of Castle East has been drill-tested. Historically, the area received little
exploration attention due to extremely limited diabase outcrop (unlike the western side of the
Camp);
The past producing Castle, Capitol and O'Brien mines, all within a 2-km radius of the Robinson
Zone, are interpreted to comprise a large silver-rich system of abundant vein networks that
follow the dip of the diabase toward Castle East in the heart of the
Miller Lake
Basin;
Very high-grade silver extends more to depth in the Gowganda Camp (toward/near the lower
contact) than previously recognized;
Sub-horizontal and sub-vertical fault structures are key controls on mineralization and they
extend throughout the Gowganda Camp;
The
Nipissing
diabase, the primary host of very high-grade silver mineralization in the Gowganda
Camp, is now known to thicken in a higher temperature system at Castle East;
Total volume of the diabase at Castle East is estimated to range from
970 million
to
1.45
billion
cubic meters, vs. an estimated
69
million cubic meters for the Castle mine. The extent of
actual mineralized diabase at Castle East is still unknown, and it is too early in the exploration
stage to determine potential quantity and grade of the broader Castle East exploration target.
Matt Halliday
, VP-Exploration, commented: "We're excited to continue drilling numerous remaining
exploration targets. We're seeing some phenomenal grades at Castle East, consistent with historical
discoveries in the broader district going back to the early 1900's. We see strong potential to expand
and upgrade the known Inferred resource estimate, including higher up in the diabase, given the
multiple targets we have.
"Importantly, such a high concentration of metal in zones 1A and
1B
of the Robinson Zone provides a
bull's eye target for a ramp strategy aimed at accessing these pods of extremely high-grade
material while also creating underground exploration platforms that can efficiently follow the vein
structures," Halliday added. "That's how Agnico Eagle (Castle mine) and others succeeded in this
district - they went straight to the accumulations of native silver. We will incorporate that strategy
while also taking advantage of new technology to ensure that Canada Silver Cobalt's exploration
toolbox is the most modern and effective in the Camp."
Vision For Castle East
Canada Silver Cobalt has launched the permitting process, under
Ontario's
"Advanced Exploration
Permit" structure, to construct a ramp to the rich Robinson Zone which will also provide underground
exploration platforms to greatly enhance new discovery opportunities targeting both high-grade silver
and the new gold zone (refer to
March 2, 2020
, news release) located within Archean rocks
overlying the diabase several hundred meters southwest of the Robinson Zone. This streamlined
process, which doesn't require any federal approvals, includes environmental baseline studies for air
and water permits in addition to a closure plan for Castle East. CCW has already met with Ministry
officials and has engaged a leading engineering firm to help spearhead the process.
District Model
The deposit model and history of the Gowganda Camp, and the broader Northern Ontario Silver-
Cobalt District which officially produced nearly half a billion ounces of silver last century, show that
unusually rich, narrow vein shoots (generally half an inch to six inches in true width and, in rare
cases, up to approximately 12 inches in true width) can extend for tens or even hundreds of meters
(pinching and swelling, moving in and out of very high-grade mineralization). These veins may be
surrounded by strongly mineralized wall rock and they're often within a network of closely spaced
parallel veins and veinlets in addition to silver-filled fractures.
Phase 2 Drilling
The current program is designed to test the vertical extension of the mineralized zones to surface
and to increase quantity and confidence of the mineral resources. Phase 2 will also include follow-up
on a new high-grade vein discovery (CS-20-22) approximately 95 meters below the Robinson Zone
in the lower half of the
Nipissing
diabase near the contact with the Archean volcanics. CS-20-22 is
interpreted to have intersected a second potential major vein structure with an assay of
8,338.41
g/t
Ag or
243
oz/ton over 0.35 meters (true width estimated at 50% to 70%). This native silver vein,
discovered at a vertical depth of approximately 500 meters, does not form part of the maiden
Inferred resource for Castle East released
May 28, 2020
.
Significantly, vein intersections at Castle East exist in both the upper and lower parts of the
Nipissing
diabase contact with the Archean volcanics, greatly enhancing the deposit potential of the area with
implications for the broader Camp where historic production was predominantly on the upper half of
the diabase. Geologists are also exploring the possibility that rich silver veins at Castle East could
potentially extend into rock packages outside of the diabase.
Investors are cautioned that mineral resources which are not mineral Reserves do not have
demonstrated economic viability.
Property Map
Visit the Canada Silver Cobalt website at
www.CanadaSilverCobaltWorks.com
for an updated
Castle Property Map, or click on the following link:
https://www.canadacobaltworks.com/projects/maps/
Location
The Castle Property is 15 km east of Pan American Silver's Juby gold deposit, 30 km due south of
Alamos Gold's
Young
-
Davidson
mine, 75 km southwest of
Kirkland Lake Gold's
Macassa Complex,
80 km west of CCW's Temiskaming Testing Lab/processing facility in the town of Cobalt, and 100
km southeast of new gold discoveries in the Timmins West area.
Quality Assurance/Quality Control
Castle East core samples were collected using a 0.3-meter minimum length and a 1-meter maximum
length. Drill core recovery averaged 95%. Two quality control samples (blank and standards) were
inserted into each batch of 20 samples. The drill core was sawn with one half of the sawn core
placed in a plastic bag with the sample tag and sealed, while the second half was returned to the
core box for storage on site. For the high-grade intercepts, only one-quarter of the core has been
sent for assaying to Swastika Laboratories in
Swastika, Ontario
. Where silver was visually and
significantly present, a pulp-metallic analysis was requested for the silver and gold assays where the
entire sample is dried, weighed and crushed over 95% then fully pulverized and passed through 200-
mesh screen to create a plus 200-mesh fraction (metallics) and a minus 200-mesh fraction (pulp).
The minus 200-mesh fraction (fines) was run using geochemical analysis with AA finish for Ag, Au,
Cu, Ni, and Co. The entire +200 mesh (coarse) fraction was analyzed using gravimetric processes
(fire assay) for both Ag and Au to provide a weighted average assay for the entire sample.
Swastika Laboratories is an ISO 17025 certified lab independent of Canada Cobalt.
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 National Instrument 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 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 (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.
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:
http://www.newswire.ca/en/releases/archive/May2020/29/c5142.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 08:00e 29-MAY-20