(TheNewswire)
The acquisition of this highlyprospective property places the company in the middle of the mostprolific high-grade gold-bearing areas in Northern Ontario that haveproduced 24 million ounces of gold in the last 100 years.
Coquitlam, BC - TheNewswire- August 3, 2021 - Canada Silver Cobalt WorksInc. (TSXV:CCW) (OTC:CCWOF) (Frankfurt:4T9B)(the "Company" or "Canada Silver Cobalt") ispleased to announce that it has entered into an Option Agreement datedJuly 28, 2020 to acquire the Eby-Otto Township property (the“Property”) from geologist Doug Robinson, P.Eng., and prospectorJames Reed .
Acquisition Highlights:
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- Property lies within the prolific Kirkland Lakedistrict and is located within 5 km of the high-grade Macassa GoldMine currently operated by Kirkland Lake Gold.
- Property contains approximately 200-hectares with astrike length of over 2 km.
- Numerous strongly altered and mineralized quartzveins outcropping at surface have been discovered. The mineralization and alteration are highly favorable inaddition to being typical of other gold-bearing veins in the district.
- Preliminary channel samplinghas been recently completed with the assays pending.
- Property comes highly recommended by Doug Robinson, along-time geologist who originally discovered Canada Silver Cobalt’sRobinson Zone, and Jim Reed, an experienced prospector highly familiarwith the area.
- Acquisition allows the company to expand our preciousmetals portfolio into the well-established Kirkland Lake Gold camp aswell as the prolific Larder Lake-Cadillac Break system.
“Doug Robinson is a highly respected geologist withan exceptional record of precious metal discoveries over the past 50years. He served as underground mine geologist for Agnico Eagle Minesin the Greater Silver-Cobalt Camp in the 1980s and more recently as ageological consultant for Canada Silver Cobalt Works’ Castleproperty. His work for us led to the first major discovery of theexceptionally high-grade silver veins at Castle East which producedthe world’s Highest Pure Silver resource and we named it theRobinson Zone in his honour,” said Frank Basa, P.Eng., Chairman andCEO.
“ The propertywe are acquiring from Doug Robinson and Jim Reedis the core mining claim package they have retained over the yearsrepresenting the most prospective of the over 100 claim units theyheld since the 1990s near the high-grade Macassa Gold Mine. They havecompleted a significant amount of work at theproperty including an airborne drone-based geophysical survey alongwith substantial hand stripping and have identified several drilltargets. We are very pleased that Doug will continue to be involved asa consultant to Canada Silver Cobalt Works and will assist in the nextsteps in continuing gold exploration at the acquired property,” Mr.Basa stated.
Terms of the Acquisition
Claim holders Doug Robinson and James Reed grant theoption to Canada Silver Cobalt Works Inc. to acquire, over a period of5 years, 100% of the Property in return for cash payments totalling$364,000, the issuance of 800,000 common shares of Canada SilverCobalt Works and incurring a total of $2.4 million in explorationexpenditures on the Property. In addition, Reed and Robinson willretain a 3% royalty if Canada Silver Cobalt Works completes the entireoption. Canada Silver Cobalt Works will be the operator and willmanage all exploration work throughout the term of the option.
All shares issued are subject to a 4 month plus one dayhold period in accordance with applicable securities laws.
Details of the Property
The property that is being acquired by Canada SilverCobalt Works is in an area that has long held the interest ofgeologists because of its close proximity to the high-gradeunderground Macassa Gold Mine, currently operated by Kirkland LakeGold. The South Mine Complex at Macassa is characterized bystructurally controlled zones of finely disseminated pyrite, visiblegold and tellurides and consisting of wide, gold-bearing alterationand mineralization haloes. The Macassa Gold Mine, which commencedoperations in 1933, has produced more than 5 million oz gold, hasbenefited from new discoveries within its property over the years, andstill has one of the highest reserve grades in the world (21.9 g/t Au,according to the Kirkland Lake Gold website). The greater KirklandLake area, situated along the Larder-Lake Cadillac Break has producedover 24 million ounces of gold. Geologists and major explorationcompanies have been searching for significant gold west of the MacassaMine for decades. Doug Robinson and partners have based and focussedtheir exploration efforts on a significant displacement along theAmikougami Creek Fault located west of the Macassa Mine.
In the 1990s, Doug Robinson and James Reed controlledover 100 claim units in this area, representing 15 km parallel to theLarder Lake-Cadillac Break system that contains the gold of KirklandLake. After mapping over 1,214 hectares (3,000 acres) and running over200 km of ground-based geophysics, the best claims were retained, andthey form the core of the current property representing over 2 kmstrike length of potential extension of mineralized host rock. Theclaims are located just east of Highway 11 and just touching Highway66 to the North. Other major infrastructure potentials include therailway just north of the claims, plus access to an electrical gridand natural gas.
The property hosts several quartz veins up to 0.45metre wide at surface with significant albite and carbonate alterationthat are typical of gold veins hosted in the Larder Lake-Kirkland Lakemain break system. Some of the veins also contain pyritemineralization and albite alternation which are considered afavourable host for gold mineralization and may be a vector intohigh-grade gold mineralization below the surface. In addition, two ofthe prime mineralized veins occur within fault zones which are also afavourable ore environment in the Kirkland Lake gold camp.
While the core of this claim group has beencontinuously controlled since the 1980s, the property has experiencedsignificant work recently including an extensivehand stripping program where substantial channel sampling wascompleted and assays are pending as well as the completion of a 58-kmdrone-based airborne magnetometer survey. Initial work in the monthsahead will focus on stripping and channel sampling while permits fordrilling are obtained.
Further details of the property can be viewed at www.kirklandgold.com or at the following link Eby-Otto Gold Property .
Qualified Person
The technical information in this news release wasprepared under the supervision of Mr. Frank Basa, P.Eng., ChiefExecutive Officer of Canada Silver Cobalt Works Inc., a qualifiedperson in 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 in the Castle East area 1.5 kmfrom the past-producing Castle Mine near Gowganda, Ontario in theprolific high-grade Silver District of Northern Ontario, with drillingintercepts at Castle East ranging up to 89,853 g/t Ag (2,621 oz). TheCompany released the first-ever resource in the Gowganda Camp andgreater Cobalt Camp in May 2020. A total of 7.56 million ounces ofsilver in Inferred resources, comprising very high-grade silver( 8,582 grams per tonne un-cut or 250.2 oz/ton) in 27,400 tonnes of materialfrom two sections (1A and 1B) of the Castle EastRobinson Zone beginning at a vertical depth of approximately 400meters, was identified. The discovery remains open in all directions(1A and 1B are approximately 800 meters from the Capitol Mineworkings) (mineral resources that are not mineral reserves do not havedemonstrated economic viability) (refer to Canada Silver Cobalt WorksPress Release May 28, 2020. Report reference: Rachidi, M. 2020, NI 43-101 Technical ReportMineral Resource Estimate for Castle East, Robinson Zone, Ontario,Canada , with an effective date of May 28, 2020and 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 Castle, an exceptional high-grade silver discovery at Castle East,a pilot plant to produce cobalt-rich gravity concentrates on site, aprocessing facility (TTL Laboratories) in the town of Cobalt, and aproprietary hydrometallurgical process known as Re-2Ox for thecreation 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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