COQUITLAM, BC, Oct. 25, 2019 /CNW/ - Canada Cobalt Works Inc.
(TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the "Company" or "Canada
Cobalt") is pleased to provide the following corporate
update.
Underground Drilling
Multi-directional diamond drilling on the first level of the
Castle Silver-Cobalt mine is expanding the footprint of massive
cobalt, nickel and silver mineralization near the adit entrance
where drilling last year returned high grades (refer to
Nov. 2, 2018 news release).
A total of 13 drill holes have already been completed in the
adit entrance area with visible mineralization noted in a majority
of them. Niton XRF (X-ray fluorescence) analysis of these new
holes is consistent with values reported Nov. 2, 2018, in sections over a broad area as
drilling fans out to fully test the continuity of the main
vein. This near vertical vein extends for a minimum of 80
meters from the adit entrance and also features sub parallel
veins.
Multiple prospective areas of the first level, which extends for
hundreds of meters east-west and north-south, will be tested during
this second phase of underground drilling including the
newly-discovered "Jackpot" zone near Shaft No. 3 that was
inaccessible last year.
Cobalt grades intersected in the Castle mine (refer to
Feb. 19, 2019 news release),
previously only exploited for its native silver, are considered
very high in a global context. From the same Castle waste
material, Canada Cobalt has poured initial silver dore bars (refer
to Oct. 16, 2019 news release) while
its proprietary and environmentally friendly Re-2OX Process has
demonstrated the ability to remove 99% of the arsenic to produce a
battery grade cobalt sulphate (refer to Aug.
15, 2018 news release).
Canada Cobalt is now permitted to carry out underground blasting
at Castle which will greatly assist the company's exploration
efforts during this new phase of drilling.
Castle East Update
Compelling new geological interpretations are emerging regarding
deposit potential east and northeast of Castle and the Gowganda
Camp's two other past producing high-grade silver mines, Capitol
and Siscoe, all located within a radius of less than two
kilometers. These mines were at the narrow, shallow edge of
the Nipissing diabase, and the
Archean rocks to the east and the deeper parts of the Nipissing diabase (both recently shown to be
very fertile) were never systematically explored.
Canada Cobalt's surface drilling in the summer and fall of 2018
outlined a robust near-surface hydrothermal system with multi-gram
gold-bearing quartz veins and a halo of disseminated nickel and
copper mineralization in Archean volcanics in between the Siscoe
mine, several hundred meters to the west, and a 2011 drill hole
that has yet to be followed up on. This drill hole pushed
through the Archean volcanics and entered the Nipissing diabase (gabbro), cutting a
remarkable 40,944 grams per tonne silver (1,194 ounces
per ton) as well as 0.91% cobalt over 0.45 meters within a
broader core length of 3.1 meters grading 6,476 g/t silver
(189 ounces per ton) and 0.14% cobalt (refer to Aug. 25, 2011 news release, Granada Gold) at a
vertical depth of approximately 420 meters.
(The 2011 drilling and drill core sampling, including the
quality assurance/quality control, were supervised by Mr.
Doug Robinson, P.Eng. and project
geologist. Core was sent to Accurassay Laboratory in
Timmins, Ontario, for sample
preparation and to their Thunder
Bay laboratory for analysis. Silver was assayed by
fire assay with AA check with additional pulp and metallics done on
samples where significant silver was identified. Analytical
accuracy and precision were monitored by the analysis of reagent
blanks and reference materials at the lab. Quality control
was further assured by the insertion of blind certified standard
reference material and blanks into the sample stream at regular
intervals by Mr. Robinson in order to independently assess
analytical accuracy.)
Plans are underway for fresh drilling at Castle East to follow
up on the high-grade discovery potential of this area. A
comprehensive regional update, including a summary of last year's
results, will be provided in early November followed by planned new
drilling.
Voluntary Environmental Rehab at Castle And Beaver
As an environmental leader in the Northern Ontario Silver-Cobalt
Camp, Canada Cobalt is proceeding with voluntary rehabilitation at
both the Castle and Beaver mines. These efforts are focused
on areas where historic high-grade mining (stamp mills) left behind
material believed to be metal and arsenic rich. Canada Cobalt
views this opportunity for shareholders to be significant.
PolyMet Facility Acquisition
Canada Cobalt's 90-day due diligence for the proposed
acquisition of privately-held PolyMet Resources Inc. (see
Oct. 10, 2019 news release) is
proceeding positively and ahead of schedule. As contemplated
through the binding LOI, completed at a strategic time in the
precious metal cycle, the PolyMet Lab and mineral processing
facility in the town of Cobalt vertically integrates Canada Cobalt
and allows for multiple potential near-term revenue streams
(bullion pouring, bulk sampling, commercial assaying and e-waste).
This facility would be the new headquarters for Canada Cobalt
and its Re-2OX Process.
Private Placement
Further to the company's October
1, news release, Canada Cobalt is in the process of
successfully completing its $1
million private placement at 35
cents per unit, and first closing is anticipated in the
coming days.
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 has 100% ownership of the Castle mine and the 78
sq. km Castle Property with strong exploration upside in the
prolific past producing Gowganda
high-grade Silver Camp of Northern Ontario. With underground
access at Castle, a 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
while it also exploits a powerful new silver-gold market cycle.
"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.