(TheNewswire)
Theexcellent cobalt assays associated with high-grade silver supportCanada Silver Cobalt’s goalof becoming a major producer of silver with significant cobaltby-product
Coquitlam, BC – TheNewswire- August 23, 2021 - Canada Silver Cobalt WorksInc. (TSXV:CCW) (OTC:CCWOF) (Frankfurt:4T9B)(the "Company" or "Canada Silver Cobalt") ispleased to announce major high-grade cobalt assays from its CastleEast discovery where the Company has completed 42,000 meters of a60,000-meter drill program aimed at significantly increasing its43-101 resource estimate.
With additional results returned from backlogged assaylabs, the Company is now able to provide select cobalt interceptsalong with previously announced silver results for the Big Silver,17M, and 50 West zones with grades ranging up to 2.22% cobalt and 89,853 grams/tonne silver (2,621 oz/ton Ag).
Table 1: MajorCobalt Intercepts for Big Silver, 17 M, and 50 West Zones
Hole ID | Zone | From (m) | To (m) | Length (m) | Co % | Ag g/tonne |
CS-20-39 | B Silver | 557.00 | 557.76 | 0.76 | 0.62 | 36,373.76 |
Including | B Silver | 557.00 | 557.46 | 0.46 | 0.00 | 1,496.00 |
Including | B Silver | 557.46 | 557.76 | 0.30 | 1.56 | 89,853.00 |
CS-20-39W1 | B Silver | 531.25 | 531.55 | 0.30 | 0.94 | 65.43 |
CS-20-39W2 | 17 M | 540.00 | 541.00 | 1.00 | 0.33 | 74.92 |
CS-20-39W2 | B Silver | 561.73 | 562.14 | 0.41 | 0.92 | 51,612.00 |
CS-20-39W4 | 17 M | 539.45 | 540.25 | 0.80 | 0.46 | 303.00 |
Including | 17 M | 539.45 | 539.85 | 0.40 | 0.92 | 252.00 |
Including | 17 M | 539.85 | 540.25 | 0.40 | 0.00 | 354.00 |
CS-20-39W4 | B Silver | 550.60 | 551.90 | 1.30 | 0.72 | 19,308.11 |
Including | B Silver | 550.60 | 551.08 | 0.48 | 0.00 | 2,097.00 |
Including | B Silver | 551.08 | 551.50 | 0.42 | 2.22 | 53,739.00 |
Including | B Silver | 551.50 | 551.90 | 0.40 | 0.00 | 3,809.00 |
CS-20-39W5 | 17 M | 500.30 | 500.60 | 0.30 | 0.44 | 11.30 |
CS-21-50 | 50 W | 528.00 | 529.00 | 1.00 | 0.21 | <10.00 |
CS-21-50 | 50 W | 548.43 | 548.87 | 0.44 | 0.38 | 2,208.00 |
These reported zones are separate from the RobinsonZone which was the basis of the existing May 2020 resource estimate.The Big Silver and 17M Zones are two different structures believed tobe subparallel and are north to north-east trending with the BigSilver discovery hole CS-20-39 intercept located 60m south-east fromthe Robinson Zone discovery hole CA-11-08. The 50 West vein is anotherseparate structure located 650m west of the Robinson Zone discoveryhole CA-11-08.
“With the recent drilling, we have been seeingspectacular silver hits, notably as much as 89,853 g/t silver (almost9% silver). However, this drill program has been very fruitful on thecobalt side as well. The cobalt grades we have been getting with BigSilver are even higher than our first resource released in May 2020.We believe that cobalt will remain a critical mineral in the futurebecause of its role in creating high-range EV batteries, and we are inthe process of ramping up our activities to capitalize on cobalt andour proprietary Re-2Ox extraction process in the coming years,” said Matt Halliday, P.Geo., President, andCOO.
Cobalt Activities
Cobalt demand has increased in recent years due to itsuse in batteries for the expanding electric vehicle sector. Researchfirm Roskill in a recent report forecast cobalt demand to grow at acompound annual growth rate (CAGR) of 7% in the period to 2030 –underpinned by the uptake of EVs globally and healthy medium-termdemand from portable electronics amid the roll-out of 5G technology( Cobalt: Roskill’s keynote speech atthe 2021 Cobalt Conference — Roskill ).
The Company’s Castle Mine property, which is locatedwithin the high-grade cobalt embayment area surrounding the Town ofCobalt, Ontario, puts it in a prime position to capitalize on thistrend. In 2018, bench-scale testing at SGS Canada showed that theCompany’s proprietary, closed-loop hydrometallurgical Re-2Oxextraction process can produce premium-grade cobalt sulphate (22.6%cobalt sulphate hexahydrate) that meets industry specifications for EVbatteries. The process is environmentally compliant and does not needto use a smelting process that is commonly used by cobalt producersand battery recyclers. The Re-2Ox testing, using concentrate from theCastle Mine, demonstrated cobalt, nickel and manganese recoveries of99%, 81%, and 84% respectively, in addition to removing 99% of thearsenic (news releases May 31 and August 15, 2018).
The Company is continuing with optimization testing ofthe Re-2Ox process for mined material and recycled batteries and todetermine whether it can be used for rare earth extraction. Inaddition, work is underway at SGS Canada for the design andconstruction of a Re-2Ox pilot plant. The Company expects that theRe-2Ox process will be an integral part of its production of cobaltand other base metals for the expanding cobalt market.
Resource Update
Ongoing drilling in the Castle East area is gearedtoward identifying new veins to enable a significant expansion to theexisting resource. The program has been very successful as drillinghas discovered a total of seven new high-grade silver vein systemsincluding Big Silver, which is even higher-grade than the originaldiscovery Robinson Zone. These seven new vein systems, along withany new ones discovered during the remaining 18,000 meters of thedrill program, will help expand the resource estimate that isscheduled for Q1 2022.
The Company’s maiden Resource Estimate (reported in anews release May 28, 2020) identified two panels of what we call the“Robinson Zone” that contains an average silver grade of 8,582 g/t ( 250 oz/ton ) in acombined 27,400 tonnes of material for a total of 7.56 million Inferred ounces ofsilver. This is using a cut-off grade of 258 g/t AgEq. Please notethat mineral resources that are not mineral reserves do not havedemonstrated economic viability. Report reference: Rachidi, M. 2020, NI 43-101 Technical Report Mineral ResourceEstimate for Castle East, Robinson Zone, Ontario, Canada , with an effective date of May 28, 2020 and asignature date of July 13, 2020.
Location
The Castle Property is situated near the town ofGowganda, within the prolific Silver-Cobalt mining district (alsoknown as the Cobalt Camp) in Ontario, Canada. The property is located15 km east of Aris Gold Corp’s Juby gold deposit, 30 km due south ofAlamos Gold’s Young-Davidson mine, 75 km southwest of Kirkland LakeGold’s Macassa Complex, and 100 km southeast of new gold discoveriesin the Timmins West area.
Qualified Person
The technical information in this news release wasprepared under the supervision of Mr. Matthew Halliday, P.Geo., (PGO)VP Exploration of Canada Silver Cobalt Works Inc., a qualified personin accordance with National Instrument 43-101.
About Canada Silver Cobalt Works Inc.
Canada Silver Cobalt Works Inc. recently discovered amajor high-grade silver vein system at Castle East located 1.5 km fromits 100%-owned, past-producing Castle Mine near Gowganda in theprolific and world-class silver-cobalt mining district of NorthernOntario. This discovery has the highest silver resource grade in theworld, withrecent drill intercepts of up to 89,853 grams/tonne silver (2,621 oz/ton Ag). A drill program is underwayto expand the size of the deposit with an update to the resourceestimate scheduled for Q1 2022.
In May 2020, based on a small initial drill program, the Companypublished the region’s first 43-101 resource estimate that containeda total of 7.56 million ounces of silver inInferred resources, comprising very high-grade silver (8,582 grams pertonne un-cut or 250.2 oz/ton) in 27,400 tonnes of material from twosections (1A and 1B) of the Castle East Robinson Zone, beginning at avertical depth of approximately 400 meters. Note that mineralresources that are not mineral reserves do not have demonstratedeconomic viability. Please refer to Canada Silver Cobalt Works PressRelease May 28, 2020, for the resource estimate. Report reference:Rachidi, M. 2020, NI 43-101 Technical Report Mineral Resource Estimatefor Castle East, Robinson Zone, Ontario, Canada, with an effectivedate of May 28, 2020, and a signature date of July 13, 2020.
Canada Silver Cobalt’s flagship silver-cobalt Castlemine and 78 sq. km Castle Property feature strong exploration upsidefor silver, cobalt, nickel, gold, and copper. With underground accessat the fully owned Castle Mine, an exceptional high-grade silverdiscovery at Castle East, a pilot plant to produce cobalt-rich gravityconcentrates on site, a processing facility (TTL Laboratories) in thetown of Cobalt, and a proprietary hydrometallurgical process known asRe-2Ox (for the creation of technical-grade cobalt sulphate as well asnickel-manganese-cobalt (NMC) formulations), Canada Silver Cobalt isstrategically positioned to become a Canadian leader in thesilver-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 norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release. This news release may containforward-looking statements which include, but are not limited to,comments that involve future events and conditions, which are subjectto various risks and uncertainties. Except for statements ofhistorical facts, comments that address resource potential, upcomingwork programs, geological interpretations, receipt and security ofmineral property titles, availability of funds, and others areforward-looking. Forward-looking statements are not guarantees offuture performance and actual results may vary materially from thosestatements. General business conditions are factors that could causeactual results to vary materially from forward-lookingstatements.
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