COQUITLAM, BC, March 2, 2020 /CNW/ - Canada Cobalt Works
Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the "Company" or "Canada
Cobalt") is pleased to announce that as a new high-grade silver
discovery continues to build out at Castle East, with a major
update expected in the coming days, geologists are learning more
about the sulphide-rich Archean rocks with strong gold potential
above and below the Nipissing
diabase that were never systematically explored in the prolific
past producing Gowganda Silver Camp.
The Castle Archean package, featuring favorable structural and
geological characteristics in the southwest Abitibi greenstone
belt, is now increasingly viewed as prospective for
quartz-carbonate vein-type gold deposits as well as base metal and
PGE mineralization following initial phase exploration by Canada
Cobalt.
Matt Halliday, VP-Exploration for
Canada Cobalt, commented: "It's not unusual to find different types
of deposits in a mining camp, even a century or more after the
birth of a camp such as Gowganda.
The growing gold potential of the 78 sq. km Castle Property,
through first-pass drilling and a very limited amount of
exploration to date, is a fascinating development and points to
geological processes that were more complex and dynamic than
previously recognized. This has our team very excited, though our
highest priority for obvious reasons is the emerging new high-grade
silver deposit at Castle East.
"Gold and other potential deposit types at the Castle Property
are being partly explored through our ongoing program targeting
additional high-grade silver zones within broad areas of untested
diabase immediately adjacent to three robust past silver producers
(Castle, Capitol and O'Brien)," Halliday continued. "We look
forward to important updates regarding this compelling high-grade
grassroots silver discovery during this first half of March."
Castle Property Gold Highlights:
- The only gold-focused drill hole at Castle East completed in
2019 (CS19-19) has cut 4.3 g/t Au over 4 meters and 1.5
g/t Au over 12.5 meters within a 30-meter mineralized
zone (core length, true width unknown at this time) grading 0.70
g/t (vertical depth approximately 240 meters). This broad interval
included 1 meter that returned 15.2 g/t Au;
- CS19-19 was a 240-meter step-out southwest of the only hole
drilled toward the north (out of several holes completed in 2018)
which cut 2.07 g/t Au over 1.50 meters starting 109 meters downhole
(CS18-15) and also featured long intervals of highly anomalous
nickel-copper mineralization;
- CS19-19 was also a 100-meter step-out west of 2018 drill hole
CS-18-16W which cut three separate intervals of gold mineralization
including 5.5 g/t over 0.37 meters, 1.59 g/t over 1.32 meters
within 6.15 meters grading 0.56 g/t, and 1.35 g/t over 1.27 meters
within 2.12 meters grading 0.92 g/t (core lengths);
- CS18-15, CS18-16 and CS18-16W all intersected wide intervals of
highly anomalous nickel-copper mineralization;
- Through initial drilling and prospecting, gold-bearing
quartz-carbonate veins at Castle East are now known to extend for
several hundred meters west to east and 200 meters north to south,
from surface to vertical depths up to nearly 300 meters. This broad
overall zone remains open in all directions (CS19-19 was collared
approximately 1.3 km southeast of the Castle mine and 500 meters
southwest of the Robinson zone high-grade silver discovery);
- As an enhanced geological understanding develops around
east-west and north-south trending structures, follow-up drilling
will vector toward potentially richer mineralization;
- First-pass drilling, surface sampling, trenching, boulder
tracing, geophysics and MMI soil surveys show structurally aligned
anomalies indicative of a broad and robust hydrothermal
system;
- High-grade gold discovered for the first time in underground
drilling within the diabase at the Castle mine, including 22.7 g/t
Au over 0.30 m within a 2.4-m core
interval grading 5.8 g/t Au (refer to Jan.
3, 2020 news release), is being investigated by SGS Labs for
a possible association with the Archean rocks.
Refer to the Canada Cobalt website for assay tables, drill hole
coordinates and an updated map for the Castle East Gold zone.
Strong Exploration Potential Extends 17 Km To
Northeast
A 2007 assessment report refers to anomalous platinum and
palladium mineralization and the discovery of high-grade gold in
the early 1900's on what's now the northern portion of the Castle
Property in the Shillington area near the Round Lake batholith, approximately 17 km
northeast of the Castle East Gold zone, which led to some small
pits and a shaft to the 175-foot level. A series of drill holes by
Golden Chalice Resources in 2005 failed to intercept high-grade
gold but did outline an intriguing near-surface quartz breccia
copper zone with a minimum strike length of 200 meters (source:
Jan. 26, 2007 Assessment Report for
Golden Chalice Resources' Shillington Property, Peter Caldbick, P.Geo.).
Drill intercepts (core lengths) noted in the above Assessment
Report included 1.27% copper over 12.30 meters (23m to 35.30m) and
5.67% Cu over 0.50 meters (44.5m to 45m) in
drill hole GCSH10; 1.74% Cu over 3.5 meters in GCSH8; and
1.12% Cu over 4 meters in GCSH9, also at shallow depths.
This discovery, which could indicate the potential for an IOCG-type
deposit, was never followed up on, also leaving multiple airborne
and geophysical conductors unexplained or untested. Canada Cobalt
acquired these highly prospective claims in the spring of last year
when it expanded the Castle Property to 78 sq. km.
Cautionary Statement
No independent sampling or verification drilling program has
been conducted by Canada Cobalt to verify the sampling and drilling
program of Golden Chalice in 2005. The January 2007 assessment report included drill
logs, sections and assay certificates from industry accepted
laboratories. However, there was no mention of the quality control
procedures used from field to lab.
PDAC Investor Presentation
Canada Cobalt is pleased to invite investors to a PDAC 2020
presentation by Matt Halliday, CCW
VP-Exploration, focussed on the company's high-grade silver
discovery at Castle East. This presentation is at 4:00 pm
Monday, March 2, in Room 803 of the
South Building, Metro Toronto Convention Centre. The presentation
is part of PDAC's Corporate Presentation Forum for investors.
Property Map
Visit the Canada Cobalt website at www.CanadaCobalt.com for an
updated Castle Property Map, or click on the following link:
https://www.canadacobaltworks.com/projects/maps/
Location
The Castle Property is 15 km east of Pan American Silver's Juby
gold deposit, 20 miles due south of Alamos Gold's Young-Davidson mine, and 45 km southwest of
Kirkland Lake Gold's Macassa
Complex.
Quality Assurance/Quality Control
Core sampling, sample preparation, sample handling and transport
all followed a protocol established by GoldMinds Geoservices that
included a strict chain of custody from sampling to the laboratory.
The geologists at GoldMinds inserted blanks and standards at random
intervals in each batch of approximately 40 samples. The standards
were prepared by ASL Analytical Solutions.
Samples were sent to ALS Laboratory (independent laboratory in
Rouyn-Noranda). The ½ core samples
were crushed to 80% passing 2mm, riffle splitting 250g and
pulverizing the split to have a pulp 80% passing 75 microns.
Samples were assayed using multi-acid digestion and atomic
absorption. Fire assay was used for gold grade determination.
The results from the combination of blanks, standards and the
internal QA/QC met the quality criteria, indicating that Canada
Cobalt can rely on the reported values.
The authors believe that the sample preparation, security, and
analytical procedures were adequate and well suited for the purpose
of the 2019-2018 drilling program.
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's flagship Castle mine and 78 sq. km Castle
Property features strong exploration upside for silver, cobalt,
nickel, gold and copper in the prolific past producing Gowganda high-grade Silver District 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.