COQUITLAM, BC, Feb. 19, 2019 /CNW/ - Canada Cobalt Works Inc.
(TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the "Company" or "Canada
Cobalt") is pleased to announce that first-pass underground Phase 1
drilling on the first level of the Castle mine near Gowganda, 75 kilometers from Kirkland Lake, has returned multiple
high-grade cobalt and silver intercepts at very shallow depths.
Drill results have also revealed areas overlooked by historical
explorers that show potential to host very high-grade "shoots" of
silver and cobalt-silver mineralization, mixed with occasional
nickel and gold, that may extend to considerable depths outside of
historical drilling or workings.
Highlights:
- New discovery of very high-grade silver vein structures
approximately 55 meters southwest of the #3 Shaft where a silver
discovery in 1979 put the Castle mine back into production for a
decade - CA-18-54 cut 93.7 ounces per ton Ag (3,213
grams per tonne) over one meter including 286.3 ounces per
ton (9,816 g/t) over 0.33 meters starting just 9.71
meters downhole, with the hole drilled across the structure at
25o to core axis and then bottoming in high-grade
mineralization from 18.84 meters to 20.50 meters;
- 385.2 ounces per ton silver (13,208 g/t),
0.67% cobalt and 3.77 g/t gold over half a meter within a broader
5.51-meter zone that also included 1.87% cobalt over 2.54
meters and 76.4 ounces per ton Ag (2,620 g/t) over a core
length of 5.51 meters starting at just 1.46 meters (CA-18-02,
collared near the adit entrance, was drilled perpendicular to the
strike of the targeted vein structure, sub-parallel to the dip of
the vein);
- All 47 assayed shallow underground test holes intersected
cobalt mineralization with an impressive one-quarter of those holes
returning high-grade intercepts of 1.05% to 3.7%
cobalt over an average core length of 1.77 meters (true
widths unknown at this time);
- A series of key initiatives, already in motion, will drive an
expanded Phase 2 program to immediately build on these results and
accelerate the broader 2019 corporate goal to leverage the
company's proprietary Re-2OX technology simultaneously with
heightened activity at the Castle mine in ways that continue to
keep CCW share dilution to a minimum.
Jacques Monette, Canada Cobalt
Director and career miner, commented: "These results from our
first-ever underground drilling support the interpretation that
much was left behind at the Castle mine, not just cobalt but very
high-grade silver. This array of high-grade intercepts at shallow
levels further energizes our team as we ramp up again and implement
a greatly expanded second phase of our underground strategy.
"2018 was a pivotal year in the revitalization of the Castle
mine," Monette continued, "and we look forward to achieving key new
milestones in the coming months. At the height of winter, we have a
very active site and another drill program kicking off this week
southeast of the mine as we build on a potential high-grade gold
discovery at Castle East. This is an exciting new development
as the Archean rocks east of the high-grade silver mines were never
tested historically."
Next Action Steps Underground
- Immediate priority is follow-up drilling targeting high-grade
"shoots" near #3 Shaft and adit entrance;
- Through discussions with Canada Cobalt's engineering
consultant, and the Northern Ontario Ministry of Mines and
Development, all material from the first level stopes will be
dumped and removed in accordance with an amended advanced
exploration permit (notably, Canada Cobalt can produce gravity
concentrate on site). The stopes will then be available for
back-filling with cemented tailings as part of a major new program
involving Re-2OX that Canada Cobalt will be elaborating on in the
very near future;
- As part of the amended exploration permit, blasting will be
undertaken throughout the first level;
- Hydrogeological studies will evaluate dewatering of the
remaining 10 levels of the Castle mine.
Underground Drilling Highlight Details
#3 Shaft Area
Drill hole CA-18-54 hit two very high-grade silver intercepts
starting just 9.71 meters downhole, 93.7 opt (3,213 g/t)
over one meter including 286.3 opt (9,816 g/t) over
0.33 meters, followed by 11.8 opt (406.1 g/t) over
1.66 meters at the bottom of the hole beginning at 18.84 meters.
Drilling was across these structures, with the first intercept at
25o to core axis and the latter intercept cutting a
new vein at a lower angle than the first intercept. This is a new
discovery where there was limited previous work - follow-up
drilling will track the vein, and potential associated veins, to
depth.
Adit Entrance Discovery
A further review of historical work in addition to Canada Cobalt
drilling including updates of previously released preliminary data,
suggests a silver-cobalt rich vein intersected near the adit
entrance in the first three drill holes may also extend much
further to depth. CA-18-02 was one of several holes that attempted
to follow the vein from a series of inclinations from approximately
the same drill set-up through the Nipissing Diabase toward the
second level in order to test grade potential. Veining is
irregular, so contacts averaged approximately 25 degrees to core
axis (refer to Nov. 2, 2018 news
release).
High-Grade Cobalt Values Confirmed
For the first time at the Castle mine, high-grade cobalt values,
along with occasional nickel and gold, have been confirmed through
drilling to exist in vein structures, and as much as 174 meters
apart (collar to collar) from near the adit entrance (23 meters
below shaft collar) to the #3 Shaft area.
Multiple Target Areas Throughout Expansive First
Level
Phase 1 drilling has provided the Canada Cobalt geological team
with multiple highly prospective new targets for detailed
follow-up utilizing a more versatile and powerful drill rig that
can track high-grade veins to depth. Many vein structures have yet
to be tested. Based on historical mining data, veins at Castle are
known to pinch and swell and move in and out of high-grade and
lower grade mineralization over considerable distances. The first
level (there are 11 in total) is in excellent condition with a
footprint of 365 meters east-west and 360 meters north south. A
total of 58 holes were completed (47 have been assayed) in Phase 1,
totaling 675 meters. A table of assay highlights/details will be
posted on the Canada Cobalt web site.
Canada Cobalt Adds $500,000
From Exercise of Warrants
Canada Cobalt has received approximately $500,000 from the exercise of warrants over the
past two months and will continue its Northern Ontario Cobalt Camp
leading practice of keeping share dilution to a minimum while
aggressively advancing its exploration and development strategies
in a cost-effective manner.
Quality Assurance/Quality Control
Canada Cobalt Works' AQTK drill program employs diligent
standards in drill core sampling and quality assurance/quality
control. Core from the above holes was sent to Swastika
Laboratories in Swastika, Ont.,
for analysis. Where silver was visually and significantly present,
a pulp-metallic analysis was completed for the silver assays. The
entire sample was dried, weighed and crushed over 95 per cent, 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 plus silver bead to give a silver weight
and grade for the metallics portion. The minus-147 fraction (pulp)
had two samples from entire pulp which were weighed and then
digested by two-acid aqua regia and finalized by AAS reading for
cobalt, silver and nickel. 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
grade of zero gram per tonne gold for the pulp portion. Cobalt and
nickel were reported as a percentage grade. Other samples were
assayed for cobalt, silver and nickel by AAS after aqua regia
digestion. Analytical accuracy and precision are monitored by the
analysis of reagent blanks and reference materials at the lab.
Quality control is further assured by the insertion of blind
certified standard reference material and blanks into the sample
stream at regular intervals by Canada Cobalt Works personnel in
order to independently assess analytical accuracy.
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.