COQUITLAM, BC, Dec. 4, 2019 /CNW/ - Canada Cobalt Works Inc.
(TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the "Company" or "Canada
Cobalt") is pleased to announce that diamond drilling has commenced
at Castle East for first-ever follow-up on the "Robinson Zone"
high-grade discovery, a drill hole in 2011 that cut 1,194 oz/ton
silver (40,944 g/t) over 0.45 meters within a
broader core length of 3.1 meters grading 189 oz/ton
(6,476 g/t) silver (refer to August
25, 2011, Gold Bullion Development news release).
This discovery, aided initially by geophysics and now supported
by a high technology camera, is less than two kilometers east of
three prolific past producers in the Gowganda Camp - the Castle,
Capitol and Siscoe mines. Those deposits were exploited along
the shallow western margin of the productive Nipissing diabase that dips toward the very
under-explored Castle East area where Canada Cobalt is now
targeting additional deposits, within and outside the diabase.
Significantly, the Company has enhanced the exploration
opportunity at the Robinson Zone by using a custom-built borehole
inspection camera to successfully reach the 2011 drill hole
intersection of spectacular native silver at a vertical depth of
approximately 420 meters. The CCW technical team was able to
view, identify and film the vein. This provided an invaluable
geometric characterization of the unit, allowing for an accurate
plotting of a series of wedge holes designed to pierce the vein
structure at four different points to immediately build out this
high-grade discovery.
Following completion of the wedge holes, a new hole will be
drilled to intersect the vein structure(s) closer to
surface.
Further updates on Castle East will be provided in the near
future. As announced November 18,
2019, Canada Cobalt has appointed Matt Halliday, P.Geo., as VP-Exploration of the
Company. He officially joins Canada Cobalt December 15 from Kirkland
Lake Gold where he has been serving as resource
geologist.
(The 2011 drilling and drill core sampling, including the
quality assurance/quality control, were supervised by Doug Robinson, P.Eng. and project geologist.
Core was sent to Accurassay Laboratory in Timmins, Ont., for sample preparation and to
its 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 to independently
assess analytical accuracy.)
Private Placement Closing
The Company has closed a non-brokered flow-through ("FT")
private placement with strategic investors, raising gross proceeds
of $800,000. The Company issued
1,600,000 FT shares at $0.50 per
share. No warrants were included in this financing. The
private placement is subject to final Exchange approval.
Finder's fees were paid in connection with the private placement
in the amount of $45,500 in cash and
91,000 finder warrants. Each finder warrant is exercisable at
$0.50 per share for two years from
closing. The finder's fee is also subject to Exchange
approval.
All securities issued in connection with the private placement
are subject to a four-month and a day hold period expiring
April 5, 2020, in accordance with
applicable securities laws.
The proceeds of the FT private placement will be used to build
out the Castle East discovery and to advance the Beaver Property
near the town of Cobalt.
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.