(TheNewswire)
Aimedat surfacing value for the Company’s battery metals assets whilecontinuing to focus on world-class precious metals properties
Coquitlam, BC - TheNewswire - November 9, 2021 - Canada Silver Cobalt WorksInc. (TSXV:CCW) (OTC:CCWOF) (Frankfurt:4T9B)(the "Company" or "Canada Silver Cobalt") ispleased to announce that it has established a separate subsidiary forits battery metals business to be named Coniagas Battery Metals Inc.The new subsidiary will own the nickel-copper-cobalt explorationproperties that the Company is currently exploring in northern Quebecand Ontario as well as the proprietary ‘Green’ Re-2Ox processingtechnology that is able to produce cobalt, nickel and copper sulphatesfor electric vehicle battery manufacturers.
“While the Company’s main focus continues to be ourworld-class high-grade silver deposit at Castle East with explorationdrilling, environmental permitting, and a major resource updatescheduled for Q1 2022 as outlined in a recent corporate update(November 1, 2021 news release), we are also taking additional stepsalong the path we had outlined previously towards surfacing value forour battery metals assets. The establishment of this new subsidiarywill pave the way for an eventual spin-out of our battery metalsbusiness into a separate publicly traded company for the benefit ofour shareholders,” stated CEO Frank Basa. (See news releasesFebruary 16 and July 22, 2021)
Matt Halliday, President, COO and VP Exploration,states: “Right now there is a lot of interest in battery metals andwe think the best way forward to give our assets a higher level ofvisibility, and for achieving a proper valuation in the market, wouldbe to split the Company into two parts – one focused on theexceptional Castle East silver discovery as well as the KirklandLake-area gold properties we recently acquired, and the other taskedwith advancing our battery metals exploration properties and theRe-2Ox technology.”
Battery Metals Assets
Coniagas Battery Metals Inc. will include the Re-2Oxprocessing technology and 39,200 total hectares of prospectivenickel-copper-cobalt exploration properties in northern Quebec (15properties) and Ontario (one property east of the Sudbury Basin nickeldeposits). Preliminary exploration is underway at the Quebecproperties. (News releases February 16, April 20 and July 22, 2021).
Re-2Ox is a proprietary, environmentally friendly,closed-loop, hydrometallurgical process for the extraction of cobalt,nickel and other base metals from primary feeds (mined material) andsecondary feeds (recycled battery black mass) and the subsequentproduction of cobalt, nickel and other sulphates needed in the batteryindustry. The process meets strict environmental standards because itdoes not involve smelting (or burning) that many other processes useand it has no discharge.
The Re-2Ox process hasdemonstrated that it is the only globally known hydrometallurgicalprocess that can process high-arsenic feeds and recover and producebattery metals that meet Asian specifications for the electricalvehicle (EV) market. In bench scale testing at SGS Lakefield, itsuccessfully produced cobalt sulfate for the battery market, andsodium arsenate as an intermediate product, from a high-gradesilver-cobalt-arsenic gravity concentrate obtained from thepast-producing silver-cobalt Castle mine. Cobalt, nickel and manganeserecoveries from the concentrate using Re-2Ox were 99%, 81% and 84%,respectively, while 99% of the arsenic was also removed, which isimportant for complying with battery industry specifications. Inaddition to cobalt, arsenic is also on the US Critical Minerals Listas it is an important ingredient in different products includingpharmaceuticals, wood preservatives and industrial applications suchas semiconductors.
Additional Re-2Ox testing for the design of a pilotplant is currently underway at the SGS Lakefield laboratories inOntario. (For more information on Re-2Ox, see news releases May 31and August 15, 2018 and January 15 and March 1, 2021, and also theRe-2Ox flow sheet and other details in the company’s corporatepresentation at www.canadasilvercobaltworks.com andat www.re-2ox.com .)
Qualified Person
The technical information in this news release wasprepared under the supervision of Mr. Matthew Halliday, P.Geo., VPExploration of Canada Silver Cobalt Works Inc., a qualified person inaccordance 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 the first quarter of 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. More information at www.canadasilvercobaltworks.com .
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.
Copyright (c) 2021 TheNewswire - All rights reserved.