(TheNewswire)
Coquitlam, BC – TheNewswire- November 22, 2021 - Canada Silver Cobalt WorksInc. (TSXV:CCW) (OTC:CCWOF) (Frankfurt:4T9B)(the "Company" or "Canada Silver Cobalt") ispleased to announce that an acquisition agreement for 100% ownershipof the 16 Chute-des-Passes Property claims jointly owned by SOQUEMINC. (50% ownership) and MINES COULON INC. (50% ownership) has been signed. The property is adjacent andnortheast of the Graal-Nourricier-Lac Suzanne property in the LacSt-Jean region of Quebec where the ongoing drill program is located.
The company intends to quickly adjust and expand it’sdrill permits as the drill program is already in progress with 2drills on the Graal property. The 16 new claims cover an area of888.56 hectares. The agreement is for the acquisition of 100% of theChute des Passes property in return of payment of $10,000 in cash andeach company will retain a NSR as described below:
Royalties SOQUEM & COULON:
(i) In consideration for the sale of its interest inthe Chute-des-Passes Property, the Company grants SOQUEM the right toreceive a royalty of 0.5% of the net smelter return (NSR) on theChute-des-Passes Property (the Soquem Royalty), half of which isredeemable for an amount of $ 125,000.
(ii) In return for the transfer of its interest in theChute-des-Passes Property, the Company grants Mines Coulon the rightto receive a royalty of 0.5% of the net smelter income (net smelterreturn or NSR) on the Chute-des-Passes Property (the Coulon Royalty),half of which is redeemable for an amount of $ 125,000.
Existing Royalty means the royalty on the net income ofthe smelter of 1% in favor of the Fond Minier DuSaguenay-Lac-Saint-Jean, of which 0.5% is redeemable for $ 500,000.The total Royalties on the property is 2% where 1% is redeemable forthe sum of $750,000 between the different parties.
The claim numbers included with the acquisition are:CDC-2377582, 2377583, 2377584, 2377585, 2377586, 2377587, 2377588,2377589, 2377590, 2377591, 2377592, 2377593, 2377594, 2377595,2377596, and 2377597.
Figure 1: Locations of Property, Claims, OptionAgreement, and New Acquisition.
Qualified person
The technical information in this news release has beenreviewed by Claude Duplessis, P.Eng., GoldMinds Geoservices Inc., amember of the Québec Order of Engineers, and isa qualified person in accordance with the National Instrument43- 101 standards.
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. This discovery has the highest silver resource grade in theworld, with recent drill intercepts of up to 89,853 grams/tonne silver(2,621 oz/ton Ag). A drill program is underway to expand the size ofthe deposit with an update to the resource estimate scheduled for Q12022.
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.
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. More information atwww.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 the Offering and comments that involve other futureevents and conditions, which are subject to various risks anduncertainties. Except for statements of historical facts, commentsthat address the Offering, 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. No assurance can be given that the Offering will close onthe terms and conditions set out in this news release or at all.General business conditions are factors that could cause actualresults to vary materially from forward-looking statements. A detaileddiscussion of the risk factors encountered by Canada Silver Cobalt isavailable in the Company’s Annual Information Form dated July 19,2021 for the fiscal year ended December 31, 2020 available under theCompany’s profile on SEDAR at www.sedar.com.
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