Castle East Gold Zone Southwest of High- Grade Silver Discovery Broadens After Big Step-Out
Castle East Gold Zone Southwest of High-
Grade Silver Discovery Broadens After Big
Step-Out
COQUITLAM, BC
,
March 2, 2020
/CNW/ - Canada Cobalt Works Inc. (TSXV: CCW) (OTC:
CCWOF) (
Frankfurt
: 4T9B) (the "Company" or "Canada Cobalt") is pleased to announce that as a
new high-grade silver discovery continues to build out at Castle East, with a major update expected
in the coming days, geologists are learning more about the sulphide-rich Archean rocks with strong
gold potential above and below the
Nipissing
diabase that were never systematically explored in the
prolific past producing Gowganda Silver Camp.
The Castle Archean package, featuring favorable structural and geological characteristics in the
southwest Abitibi greenstone belt, is now increasingly viewed as prospective for quartz-carbonate
vein-type gold deposits as well as base metal and PGE mineralization following initial phase
exploration by Canada Cobalt.
Matt Halliday
, VP-Exploration for Canada Cobalt, commented: "It's not unusual to find different types
of deposits in a mining camp, even a century or more after the birth of a camp such as
Gowganda
.
The growing gold potential of the 78 sq. km Castle Property, through first-pass drilling and a very
limited amount of exploration to date, is a fascinating development and points to geological
processes that were more complex and dynamic than previously recognized. This has our team very
excited, though our highest priority for obvious reasons is the emerging new high-grade silver deposit
at Castle East.
"Gold and other potential deposit types at the Castle Property are being partly explored through our
ongoing program targeting additional high-grade silver zones within broad areas of untested diabase
immediately adjacent to three robust past silver producers (Castle, Capitol and O'Brien)," Halliday
continued. "We look forward to important updates regarding this compelling high-grade grassroots
silver discovery during this first half of March."
Castle Property Gold Highlights:
The only gold-focused drill hole at Castle East completed in 2019 (CS19-19) has cut
4.3 g/t Au
over 4 meters
and
1.5 g/t Au over 12.5 meters
within a
30
-meter mineralized zone (core
length, true width unknown at this time) grading 0.70 g/t (vertical depth approximately 240
meters). This broad interval included 1 meter that returned
15.2
g/t Au
;
CS19-19 was a 240-meter step-out southwest of the only hole drilled toward the north (out of
several holes completed in 2018) which cut 2.07 g/t Au over 1.50 meters starting 109 meters
downhole (CS18-15) and also featured long intervals of highly anomalous nickel-copper
mineralization;
CS19-19 was also a 100-meter step-out west of 2018 drill hole CS-18-16W which cut three
separate intervals of gold mineralization including 5.5 g/t over 0.37 meters, 1.59 g/t over 1.32
meters within 6.15 meters grading 0.56 g/t, and 1.35 g/t over 1.27 meters within 2.12 meters
grading 0.92 g/t (core lengths);
CS18-15, CS18-16 and CS18-16W all intersected wide intervals of highly anomalous nickel-
copper mineralization;
Through initial drilling and prospecting, gold-bearing quartz-carbonate veins at Castle East are
now known to extend for several hundred meters west to east and 200 meters north to south,
from surface to vertical depths up to nearly 300 meters. This broad overall zone remains open
in all directions (CS19-19 was collared approximately 1.3 km southeast of the Castle mine and
500 meters southwest of the Robinson zone high-grade silver discovery);
As an enhanced geological understanding develops around east-west and north-south trending
structures, follow-up drilling will vector toward potentially richer mineralization;
First-pass drilling, surface sampling, trenching, boulder tracing, geophysics and MMI soil
surveys show structurally aligned anomalies indicative of a broad and robust hydrothermal
system;
High-grade gold discovered for the first time in underground drilling within the diabase at the
Castle mine, including 22.7 g/t Au over
0.30 m
within a 2.4-m core interval grading 5.8 g/t Au
(refer to
Jan. 3, 2020
news release), is being investigated by SGS Labs for a possible
association with the Archean rocks.
Refer to the Canada Cobalt website for assay tables, drill hole coordinates and an updated map for
the Castle East Gold zone.
Strong Exploration Potential Extends 17 Km To Northeast
A 2007 assessment report refers to anomalous platinum and palladium mineralization and the
discovery of high-grade gold in the early 1900's on what's now the northern portion of the Castle
Property in the Shillington area near the
Round Lake
batholith, approximately 17 km northeast of the
Castle East Gold zone, which led to some small pits and a shaft to the 175-foot level. A series of
drill holes by Golden Chalice Resources in 2005 failed to intercept high-grade gold but did outline an
intriguing near-surface quartz breccia copper zone with a minimum strike length of 200 meters
(source:
Jan. 26, 2007
Assessment Report for Golden Chalice Resources' Shillington Property,
Peter Caldbick
, P.Geo.).
Drill intercepts (core lengths) noted in the above Assessment Report included
1.27% copper over
12.30 meters
(
23m
to
35.30m
) and
5.67% Cu over 0.50 meters
(
44.5m
to
45m
) in drill hole
GCSH10;
1.74% Cu over 3.5 meters
in GCSH8; and
1.12% Cu over 4 meters
in GCSH9, also at
shallow depths. This discovery, which could indicate the potential for an IOCG-type deposit, was
never followed up on, also leaving multiple airborne and geophysical conductors unexplained or
untested. Canada Cobalt acquired these highly prospective claims in the spring of last year when it
expanded the Castle Property to 78 sq. km.
Castle East Gold Zone Southwest of High-Grade Silver Discovery Broadens After Big Step-Out
(CNW Group/Canada Cobalt Works Inc.)
Cautionary Statement
No independent sampling or verification drilling program has been conducted by Canada Cobalt to
verify the sampling and drilling program of Golden Chalice in 2005. The
January 2007
assessment
report included drill logs, sections and assay certificates from industry accepted laboratories.
However, there was no mention of the quality control procedures used from field to lab.
PDAC Investor Presentation
Canada Cobalt is pleased to invite investors to a PDAC 2020 presentation by
Matt Halliday
, CCW
VP-Exploration, focussed on the company's high-grade silver discovery at Castle East. This
presentation is at 4:00 pm
Monday, March 2
, in Room 803 of the South Building, Metro Toronto
Convention Centre. The presentation is part of PDAC's Corporate Presentation Forum for investors.
Property Map
Visit the Canada Cobalt website at
www.CanadaCobalt.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, 20 miles due south of
Alamos Gold's
Young
-
Davidson
mine, and 45 km southwest of
Kirkland Lake Gold's
Macassa
Complex.
Quality Assurance/Quality Control
Core sampling, sample preparation, sample handling and transport all followed a protocol
established by GoldMinds Geoservices that included a strict chain of custody from sampling to the
laboratory. The geologists at GoldMinds inserted blanks and standards at random intervals in each
batch of approximately 40 samples. The standards were prepared by ASL Analytical Solutions.
Samples were sent to ALS Laboratory (independent laboratory in
Rouyn-Noranda
). The ½ core
samples were crushed to 80% passing 2mm, riffle splitting 250g and pulverizing the split to have a
pulp 80% passing 75 microns. Samples were assayed using multi-acid digestion and atomic
absorption. Fire assay was used for gold grade determination.
The results from the combination of blanks, standards and the internal QA/QC met the quality
criteria, indicating that Canada Cobalt can rely on the reported values.
The authors believe that the sample preparation, security, and analytical procedures were adequate
and well suited for the purpose of the 2019-2018 drilling program.
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 Cobalt Works Inc.
Canada 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, 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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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 07:30e 02-MAR-20