COQUITLAM, BC, Oct. 24, 2018 /CNW/ - Cobalt Works Inc. (TSXV:
CCW) (OTC: CCWOF) (Frankfurt:
4T9B) (the "Company" or "Canada Cobalt") is pleased to announce
that drilling 1.5 km east-southeast of the Castle mine, in an
under-explored area prospective for a new deposit type, has
intersected well-mineralized felsic Archean units at a downhole
depth between 77 meters and 163 meters as well as mineralized mafic
to ultramafic units above and below over significant widths
starting from surface.
Drilling of this third hole of the program continues.
The upper 77 meters of the hole is a coarse-grained,
variable-textured and apparent cumulate gabbroic body (crystals up
to 1 cm diameter) with disseminated pyrite throughout. From
77 m to 163
m is an intensely-altered, silicified and pyritized zone of
felsic rocks unlike anything previously intersected at the Castle
Property. Below the highly silicified unit are mineralized
mafic to ultramafic units. Mineralization in these units
consists of four distinct horizons featuring up to 1-cm diameter,
coarse-grained blebby sulphides.
Core is being investigated and assayed for gold, platinum group
elements, nickel and other potential metals.
A thin layer of overlying Huronian sedimentary rocks masked this
area from previous exploration. The hole, collared 27 meters south
of a strong, multi-element MMI soil anomaly and at the center of a
725-meter-long east-west trending IP anomaly with an associated
chargeability halo, was drilled toward the north.
At the completion of this hole, a follow-up hole will be
collared to the north of the MMI anomaly and 50 meters to the west,
drilled southward to give a second cut through these
newly-discovered mineralized zones.
Underground Drilling Update
A total of 67 underground drill holes have now been completed on
the first level of the Castle mine. Visual analysis of core
supports the Company's geological model that many well-mineralized
cobalt vein structures were left behind by previous
operators. The Company looks forward to providing initial
assay results, and a steady stream thereafter, within the next
seven to 10 days.
Pilot Plant Produces 8.25% Cobalt Concentrate From Waste
Pile
Canada Cobalt's on-site proprietary pilot plant recently
produced a gravity concentrate from a 250-kilogram sample randomly
selected from the Castle mine waste pile (material left behind
outside the mine by previous operators). Subsequent assaying
by Swastika Laboratories has returned a cobalt concentrate grading
8.25%, featuring head grades of 0.39% cobalt and
1,905 g/t silver.
Frank Basa, Canada Cobalt
President and CEO, commented, "Such head grades from the waste pile
at Castle are extremely encouraging, not to mention our ability to
produce such a high cobalt concentrate on site from material that
was considered waste decades ago. Our proprietary Re-2OX
process takes the concentrate from this stage, removes the arsenic
and converts the concentrate into a client-specific technical grade
cobalt sulphate."
Quality Assurance/Quality Control
Two samples weighing a total of 250 kilograms, having been
processed in Canada Cobalt Works'
proprietary Re-2OX pilot plant at the Castle Property, were taken
to Swastika Laboratories in Swastika,
Ontario, for analysis where a pulp-metallic analysis was
completed for the silver assays. The entire sample was dried,
weighed and crushed over 95%, then fully pulverized and passed
through 147-micron screen to create a plus 147-micron fraction
(metallics) and a minus 147-micron fraction (pulp). Approximately
50 grams of the metallic fraction was weighed, fused and assayed by
fire assay. The resulting dore bead of gold and silver was weighed
before adding HNO3 acid to dissolve the
silver. The remaining gold bead was weighed and subtracted
from the gold + silver bead to give a silver weight and grade for
the metallics portion. The minus-147 fraction (pulp) had 2 samples
from entire pulp which were weighed and then digested by two acid
aqua regia and finalized by AAS reading for Co, Ag and Ni.
Final silver grade is a calculated weighted average using grades
and weights from both pulps and metallics. As gold was
not assayed in the pulps, the final gold assay was calculated by
weighted average, as for the silver, but assuming a 0.0 g/t Au
grade for the pulp portion. Cobalt, nickel and copper were
provided as percent grade. Analytical accuracy and precision
are monitored by the analysis of reagent blanks and reference
materials at the lab.
Qualified Person
The technical information in this news release was prepared
under the supervision of Frank J.
Basa, P.Eng., Canada Cobalt's President and Chief Executive
Officer, who is a member of Professional Engineers Ontario and a
qualified person in accordance with National Instrument 43-101.
About Canada Cobalt Works Inc.
Canada Cobalt is a pure play cobalt company focused on its past
producing Castle mine in the Northern Ontario Cobalt Camp,
Canada's most prolific cobalt
district. With underground access at Castle, a recently installed
pilot plant to produce cobalt-rich gravity concentrates on site,
and a proprietary hydrometallurgical process known as Re-2OX for
the creation of technical grade cobalt sulphate as well as
nickel-manganese-cobalt (NMC) formulations, Canada Cobalt is
strategically positioned to become a vertically integrated North
American leader in cobalt extraction and recovery.
"Frank J. Basa"
Frank J. Basa, P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address
future events and conditions and therefore, involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
SOURCE Canada Cobalt Works Inc.