COQUITLAM, BC, Jan. 3, 2020 /CNW/ - Canada Cobalt Works Inc.
(TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the "Company" or "Canada
Cobalt") is pleased to announce that initial assay results from
multi-directional and very short underground drill holes on the
western side of the Castle mine have revealed unexpected high-grade
gold in addition to more high-grade cobalt, silver and nickel. This
is now considered an emerging new discovery area open for
considerable potential expansion with easily accessible
mineralization from the first level near the adit
entrance.
With Canada Cobalt soon to be vertically integrated through its
pending acquisition of the only facility in the Northern Ontario
Silver-Cobalt district that combines bullion pouring, bulk
sampling, commercial assaying and e-waste processing, these latest
results support the Company's enhanced strategic options to fully
unlock the value of the 11-level Castle mine and very prospective
material left in the stopes and adjacent to the mine as a result of
historic production. Silver was the primary focus of previous
operators who used a very high silver cut-off grade and bypassed
cobalt-rich veins with less apparent silver while gold and nickel
potential were ignored.
Highlights:
- 22.7 g/t Au and 1.03% Co in drill hole C-U-19-016
from 3.3m to 3.6m within a broader 2.4-m core interval grading
5.8 g/t Au and 0.78% Co (2.4m
to 4.8m, drilled upward toward the
surface);
- 10.8 g/t Au and 3.4% Co in drill hole C-U-19-005
from 0.67m to 1m within 1.33m
(0.67m to 2.0m) grading 3.7 g/t Au and 1.3% Co (drilled
down into the floor, collared approximately 4m west and 4.3m
south of C-U-19-016);
- 4,970 g/t Ag (144.9 oz/ton) and 0.40% Co
(1.2m to 1.8m), 1.6% Co and 1.1% Ni
(1.8m to 2.4m) and 2.9% Co, 3.7% Ni and
0.89 g/t Au (4.8m to
5.4m), all in drill hole C-U-19-006
(drilled down into the floor from the same set-up as C-U-19-005 but
intersecting a different part of the vein);
- 3.2% Co, 102 g/t Ag and 3.0% Ni from 0.9m to 1.2m in
drill hole C-U-19-002 within 1.5m
(0m to 1.5m) grading 1.7% Co and 1.6% Ni
(drilled down into the floor from the same set-up as holes #5 and
#6 but at a different angle);
- Cobalt mineralization was intersected in 13 out of the 16 holes
included in this release with 7 of those short test holes returning
intervals >1% cobalt. Cobalt grades reported from the first
level of the Castle mine, previously only exploited for its native
silver, are considered very high in a global context.
Matt Halliday, Canada Cobalt
VP-Exploration, commented: "The presence of gold in gabbro
(diabase) vein structures, open toward the surface and at depth, is
extremely intriguing. Through some immediate lab work we will
better understand what this gold is associated with in preparation
for aggressive follow-up. Gold content bodes very well for our
underground model. Also, this gives fresh impetus to our drive
to find a high-grade gold system in the heavily under-explored
Archean rocks, a very favorable host for gold, adjacent to our new
high-grade silver discovery at Castle East 1.9 km from Shaft #3.
These are exciting times for our geological team.
"We eagerly anticipate updating shareholders with respect to the
Castle East discovery where drilling is scheduled to resume
Monday, January 6, with a second and
larger batch of assays expected from the lab during this first half
of the month," Halliday concluded.
This news release includes highlights of significant results
from the first 16 holes of 47 completed to date (228.5 meters) that
have further tested parts of a large vein exposed over 80 meters on
the mine's first level, associated with at least three sub-parallel
veins. Assays are core lengths (true widths unknown at this
time) and show good continuity of mineralization (refer to
CanadaCobaltWorks.com for assay table). The depth
extension of this major vein has yet to be determined while other
mineralized vein structures on the expansive first level (365
meters east-west and 360 meters north-south) are also a priority
during this second phase of drilling to follow up on the success of
the first-ever underground program in 2018. More assay results
will be released after they are received, verified and
interpreted.
Quality Control/Assurance
The underground drilling program and sampling protocol are being
managed by geologists from GoldMinds Geoservices. Holes were
drilled from eight setups using AQ diameter drill core. Samples
were collected using a 0.3-meter average length, 1.5-meter maximum
length. Drill core recovery averaged 95%. Two quality control
samples (blank and standards) were inserted into each batch of
around 20 samples. The drill core was separated into two parts
using the hydraulic splitter with one half of the split core placed
in a plastic bag with the sample tag and sealed, while the second
half was returned to the core box for storage on site.
All AQ core assays reported were assayed at ALS laboratory at
Rouyn-Noranda by crushing 70%
<2mm then pulverized to 85% passing 75 micrometers. Au, Pt
and Pd determination was by fire assay on a 30-gram sample of the
pulverized sample and ICP-AES. The high-grade Au samples were
determined with a gravimetric finish. All samples were also
analyzed for multi-elements, using an Aqua Regia digestion and
ICP-AES method (Co, Ni and Ag). Ag samples returning over limit
values were re-run using a gravimetric finish.
Qualified Person
The technical information in this news release was prepared
under the supervision of Mr. Merouane
Rachidi, Ph.D., P.Geo., (APGO, APEGNB and OGQ) of GoldMinds
Geoservices, 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.