Downhole Camera Guides Canada Cobalt to High-Grade Silver Target as Drilling Commences at Castle East
Downhole Camera Guides Canada Cobalt to
High-Grade Silver Target as Drilling
Commences at Castle East
COQUITLAM, BC
,
Dec. 4, 2019
/CNW/ - Canada Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF)
(
Frankfurt
: 4T9B) (the "Company" or "Canada Cobalt") is pleased to announce that diamond drilling
has commenced at Castle East for first-ever follow-up on the "Robinson Zone" high-grade discovery,
a drill hole in 2011 that cut
1,194 oz/ton silver
(
40,944 g/t
) over
0.45
meters within a broader core
length of 3.1 meters grading
189 oz/ton
(
6,476 g/t
) silver (refer to
August 25, 2011
, Gold Bullion
Development news release).
This discovery, aided initially by geophysics and now supported by a high technology camera, is less
than two kilometers east of three prolific past producers in the Gowganda Camp - the Castle,
Capitol and Siscoe mines. Those deposits were exploited along the shallow western margin of the
productive
Nipissing
diabase that dips toward the very under-explored Castle East area where
Canada Cobalt is now targeting additional deposits, within and outside the diabase.
Significantly, the Company has enhanced the exploration opportunity at the Robinson Zone by using
a custom-built borehole inspection camera to successfully reach the 2011 drill hole intersection of
spectacular native silver at a vertical depth of approximately 420 meters. The CCW technical team
was able to view, identify and film the vein. This provided an invaluable geometric characterization
of the unit, allowing for an accurate plotting of a series of wedge holes designed to pierce the vein
structure at four different points to immediately build out this high-grade discovery.
Following completion of the wedge holes, a new hole will be drilled to intersect the vein structure(s)
closer to surface.
Further updates on Castle East will be provided in the near future. As announced
November 18,
2019
, Canada Cobalt has appointed
Matt Halliday
, P.Geo., as VP-Exploration of the Company. He
officially joins Canada Cobalt
December 15
from
Kirkland Lake Gold
where he has been serving as
resource geologist.
(The 2011 drilling and drill core sampling, including the quality assurance/quality control, were
supervised by
Doug Robinson
, P.Eng. and project geologist. Core was sent to Accurassay
Laboratory in
Timmins, Ont.
, for sample preparation and to its
Thunder Bay
laboratory for analysis.
Silver was assayed by fire assay with AA check with additional pulp and metallics done on samples
where significant silver was identified. Analytical accuracy and precision were monitored by the
analysis of reagent blanks and reference materials at the lab. Quality control was further assured by
the insertion of blind certified standard reference material and blanks into the sample stream at
regular intervals by Mr. Robinson to independently assess analytical accuracy.)
Private Placement Closing
The Company has closed a non-brokered flow-through ("FT") private placement with strategic
investors, raising gross proceeds of
$800,000
. The Company issued 1,600,000 FT shares at
$0.50
per share. No warrants were included in this financing. The private placement is subject to final
Exchange approval.
Finder's fees were paid in connection with the private placement in the amount of
$45,500
in cash
and 91,000 finder warrants. Each finder warrant is exercisable at
$0.50
per share for two years
from closing. The finder's fee is also subject to Exchange approval.
All securities issued in connection with the private placement are subject to a four-month and a day
hold period expiring
April 5, 2020
, in accordance with applicable securities laws.
The proceeds of the FT private placement will be used to build out the Castle East discovery and to
advance the Beaver Property near the town of Cobalt.
Qualified Person
The technical information in this news release was prepared under the supervision of
Frank J. Basa
,
P.Eng., Canada Cobalt's President and Chief Executive Officer, who is a member of Professional
Engineers Ontario and a qualified person in accordance with National Instrument 43-101.
About Canada Cobalt Works Inc.
Canada Cobalt has 100% ownership of the Castle mine and the 78 sq. km Castle Property with
strong exploration upside in the prolific past producing
Gowganda
high-grade Silver Camp 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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http://www.newswire.ca/en/releases/archive/December2019/04/c1714.html
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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 19:30e 04-DEC-19