(TheNewswire)
Coquitlam, BC – TheNewswire - May 2, 2022 - Canada Silver Cobalt Works Inc. (TSXV:CCW) (OTC:CCWOF) (Frankfurt:4T9B) (the"Company" or "Canada Silver Cobalt") announcesthat has entered into a non-binding letter of Intent (“LOI”) datedApril 20, 2022 with Power Group Projects Corp. (“PGP”) whichcontemplates a transaction whereby PGP would sell its interest inspecific Cobalt area properties (the “Property), located in Coleman,Bucke and Lorrain Townships in the Larder Lake Mining Division ofOntario to the Company. The LOI is subject to a 90-day exclusivityand due diligence period.
Under the terms of the LOI, the Company and PGP wouldenter into a formal agreement whereby the Company would purchase a100% interest, subject to a 2% NSR in specific PGP Properties and thedata related to the Property subject to a payment of $75,000 cash andthe issuance of 300,000 shares of Canada Silver to PGP upon closingthe transaction. The transaction is subject to TSX Venture Exchangeacceptance.
The Properties in question are comprised of 66 claimsand 21 mining and surface rights patents totalling approximately 1,000hectares. Within the patented claims, the historic Smith Cobalt Minesunk a shaft to a depth of 452 feet in 1930’s where they worked 4veins and produced over 500 pounds cobalt. The property is adjacentto the past-producing Deer Horn Mine where over 2.5 million ouncessilver and over 88,000 pounds cobalt, 150,000 pounds copper, and30,000 pounds nickel were recovered between 1960 and 1965. Anadditional million ounces of silver was estimated (but unconfirmed) tobe produced from 1928 to 1942 (Silver-Cobalt-Calcite Vein Deposits ofOntario, Mineral Deposit Circular 010, Ontario Department of Mines,A.O.Sergiades, 1968).
“The purpose of this transaction would be to furtherstrengthen the Company’s battery metals portfolio and provide anadditional key land package in the Cobalt Camp. This region isextremely under-explored and has experienced a long hiatus of miningin the area. Our technical team believes that this location has thenecessary geological indicators and historical success to hostfurther cobalt deposits. Using modern technology and knowledge gainedfrom exploring satellite deposits proximal to existing mines, such asCastle East in Gowganda, we believe that this property holds strongpotential.” stated Gerhard Kiessling, Exploration Manager.
Qualified person
The technical information in this news release wasprepared under the supervision of Mr. Matthew Halliday, P.Geo., (PGO),President, COO and VP Exploration of Canada Silver Cobalt Works Inc.,a qualified person in accordance with National Instrument43-101.
About Canada Silver Cobalt WorksInc.
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. The Company has completed a 60,000m drill program aimed atexpanding the size of the deposit with an update to the resourceestimate underway.
In May 2020, based on a small initial drill program,the Company published the region’s first 43-101 resource estimatethat contained a total of 7.56 million ounces of silver in Inferredresources, comprising very high-grade silver (8,582 grams per tonneun-cut or 250.2 oz/ton) in 27,400 tonnes of material from two sections(1A and 1B) of the Castle East Robinson Zone, beginning at a verticaldepth of approximately 400 meters. Note that mineral resources thatare not mineral reserves do not have demonstrated economic viability.Please refer to Canada Silver Cobalt Works Press Release May 28, 2020,for the resource estimate. Report reference: Rachidi, M. 2020, NI43-101 Technical Report Mineral Resource Estimate for Castle East,Robinson Zone, Ontario, Canada, with an effective date of May 28,2020, and a signature date of July 13, 2020.
The Company also has 14 battery metals properties inNorthern Quebec where it is currently drilling and the prospective1,000-hectare Eby-Otto gold property close to Agnico Eagle’shigh-grade Macassa Mine near Kirkland Lake, Ontario where it will beexploring in 2022.
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, a processing facility (TTL Laboratories) in the town ofCobalt, and a proprietary hydrometallurgical process known as Re-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. More information at www.canadasilvercobaltworks.com
“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 Service Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
Caution RegardingForward-Looking Statements
This news release may containforward-looking statements which include, but are not limited to,comments regarding future financings, if any, pursuant to the shortform base shelf prospectus referred to above, and comments thatinvolve future events and conditions, which are subject to variousrisks and uncertainties. Except for statements of historical facts,comments that address resource potential, upcoming work programs,geological interpretations, receipt and security of mineral propertytitles, future financings, 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-looking statements. Adetailed discussion of the risk factors encountered by Canada SilverCobalt is available in the Company’s Annual Information Form datedJuly 19, 2021 for the fiscal year ended December 31, 2020 availableunder the Company’s profile on SEDAR at www.sedar.com.
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