COQUITLAM, BC, May 28, 2020 /CNW/ - Canada Silver Cobalt Works
Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the "Company" or "Canada
Silver Cobalt") is pleased to announce the results of its first NI
43-101 Mineral Resource estimate for the early stage Castle East
Robinson Zone discovery in the heart of the past producing Gowganda
Silver Camp, 75 kilometers southwest of Kirkland Lake.
Castle East is part of Canada Silver Cobalt's 100%-owned, 78 sq.
km Castle Property also featuring the Castle mine. Late last year
the company initiated a follow-up program to a 2011 discovery hole
approximately two km southeast of the mine, and within two km of
two other past producers, that returned a high-grade intercept of
40,944 g/t silver (1,194 oz/ton) over a core length
of 0.45 meters (refer to August 25,
2011, Gold Bullion Development news release). Four holes
(CS-19-08W1, CS-19-08W2, CS-19-08W3 and CS-19-W4) were wedged off
the 2011 hole followed by four holes (CS-19-20, CS-19-21, CS-20-22
and 23) drilled to intersect the vein zone from a different angle.
The latest hole was drilled parallel to and collared 45 meters from
the historic hole. CCW's program aimed to delineate the extent of
the high-grade mineralization within the Robinson Zone that shows
very high grades in the form of native silver.
The mineral resource estimate used the four wedge holes and the
four holes drilled from surface (CS-19-08W1 to W4; CS-19-20,
CS-19-21; CS-20-22 and CS-20-23) and one historical drill hole
(CA1108).
This resource estimate was independently prepared by GoldMinds
Geoservices Inc. in accordance with National Instrument 43-101 ("NI
43-101") and is dated May 28,
2020.
Notably, Zones 1A and 1B have
an average silver grade of 8,582 g/t (250.2 oz/ton) in a combined
27,400 tonnes of material for a total of 7,560,200 Inferred ounces
using a cut-off grade of 258 g/t AgEq (mineral resources
which are not mineral Reserves do not have demonstrated economic
viability).
Table 1: Mineral Resource Estimate at Castle East Using a
Cut-Off Grade of 258 AgEq g/t
Inferred
Mineral
Resources
|
Ag
|
Co
|
Cu
|
Ni
|
Pb
|
Zn
|
AgEq
|
Tonnes
|
Ag
|
AgEq
|
g/t
|
g/t
|
g/t
|
g/t
|
g/t
|
g/t
|
g/t
|
Oz.
|
Oz.
|
Zone
1A
|
7,960
|
946
|
349
|
790
|
16
|
12
|
8,042
|
8,100
|
2,073,000
|
2,094,200
|
Zone
1B
|
8,843
|
2,308
|
325
|
336
|
30
|
52
|
8,998
|
19,300
|
5,487,200
|
5,583,200
|
Zone
2A
|
38
|
5,673
|
2,101
|
453
|
118
|
108
|
426
|
5,500
|
6,800
|
75,300
|
Total
Inferred
Mineral
Resources
|
7,149
|
2,537
|
628
|
467
|
41
|
52
|
7,325
|
32,900
|
7,567,000
|
7,752,700
|
Notes:
- Mineral resources which are not mineral Reserves do not have
demonstrated economic viability. The estimate of mineral resources
may be materially affected by environmental, permitting, legal,
title, market or other relevant issues. The quantity and grade of
reported Inferred resources are uncertain in nature and there has
not been sufficient work to define these Inferred resources as
Indicated or Measured resources;
- The database used for this mineral estimate includes drill
results obtained from historical (2011 one hole) to the recent 2019
drill program and wedges from the 2011 diamond drill hole;
- Mineral resources are reported with mineable shape cut-off
grade equivalent to $125 USD (258 g/t
AgEq) including mining, shipping and smelting cost with recovery of
95%. The high-grade value of the mineral resources may potentially
allow for direct shipping. The assay results are not capped as they
are not considered as outliers at this stage and results are
reproducible;
- The geological interpretation of the mineralized zones is based
on lithology and the mineralized intervals intersected by drill
holes. The use of the borehole inspection camera provided a
valuable geometric characterization of the mineralized
intervals;
- The mineral resource presented here was estimated with a block
size of 1mE x 1mN x 1mZ;
- The blocks were interpolated from equal length composites
of 0.5m calculated from the
mineralized intervals;
- The minimum horizontal width of the mineralized envelopes
includes dilution and is 1.3m;
- The mineral estimation was completed using the inverse
distance to the square methodology utilizing two passes. For each
pass, search ellipsoids followed the geological interpretation
trends were used;
- The mineral resources have been classified under the guidelines
of the CIM Standards on Mineral Resources and Reserves,
Definitions and Guidelines prepared by the CIM Standing
Committee on Reserve Definitions in 2019 and adopted by CIM Council
(2020), and procedures for classifying the reported mineral
resources were undertaken within the context of the Canadian
Securities Administrators NI 43-101;
- To convert volume to tonnage a specific gravity of 3.4 tonnes
per cubic metre was used. Results are presented in‑situ without
mining dilution;
- This mineral resource estimate is dated May 28, 2020. Tonnages and AgEq oz in the table
above are rounded to nearest hundred. Numbers may not total due to
rounding;
- The table below shows the commodity prices and the formula
for AgEq calculation:
- Additional details will be provided in the Technical
Report.
![Figure 1: The location of the mineralized envelopes. (CNW Group/Canada Silver Cobalt Works Inc.) Figure 1: The location of the mineralized envelopes. (CNW Group/Canada Silver Cobalt Works Inc.)](https://mma.prnewswire.com/media/1173884/Canada_Silver_Cobalt_Works_Inc2.jpg)
As part of the resource estimation process, the company and
GoldMinds compiled, verified and modelled all technical information
available from the Castle East Project. The 3D geological models
were built for sub-vertical structures. The mineralized envelopes
were created using the last diamond drill holes (CS-19-08W1 to W4;
CS-19-20, CS-19-21; CS-20-22 and CS-20-23) and the historical hole
CA1108. A total of four mineralized envelopes were created by
connecting the defined mineralized prisms on the sections with a
minimum horizontal width of 1.3m. A
fixed density of 3.4 t/m3 was used. This density
reflects the typical mineralized interval composed mainly of
diabase. The geological and mineralization wireframes were
constructed using Genesis©, a modelling and mineral estimation
software.
The maximum depth of the mineralized envelopes is around Z =
-73 m (around 490 metres from the
surface). The envelopes are extended from around 350m to 490m from
the surface. A total of four block models were created. The block
size (1mE × 1mN × 1mZ) has been defined to respect the geometry of
the envelopes.
Search ellipsoids were used for the grade estimation and follow
the geological interpretation trends. Block grades were
interpolated from the composites (0.5m length) within the envelopes in two passes
using the inverse distance to the square methodology and the assays
results are not capped.
For the first pass, the number of composites was limited to
twelve (12) with a minimum of three (3) with a maximum of two (2)
composites from the same hole. For the second pass, the number of
composites was limited to twelve (12) with a minimum of two
(2).
A cut-off grade of $125 USD (258
g/t AgEq) was applied for these underground mineral resources.
Table 2: The price used for the calculation of AgEq
Element
|
Ag
|
Co
|
Cu
|
Ni
|
Pb
|
Zn
|
[oz]
|
[ton]
|
[ton]
|
[ton]
|
[ton]
|
[ton]
|
USD
|
$15
|
$30,000
|
$5,150
|
$12,327
|
$1,650
|
$1,925
|
A Technical Report with respect to the present mineral resource
estimate disclosed today will be filed within 45 days in accordance
with NI 43-101. The report will also present more details on the
project and findings. The company will continue to advance, explore
and de-risk the project with further engineering (metallurgical,
mining) and environmental study & social community relations
with locals and First Nations.
Table 3: Significant Robinson Zone Drill Results –
Silver/Cobalt Values
CCW Castle East
Robinson Zone Significant Drill Intercepts (Core
Intervals)
|
Hole
#
|
From
[m]
|
To
[m]
|
Length
[m]
|
Ag
[g/t]
|
Ag
[oz/ton]
|
Co
[%]
|
CA1108
|
563.54
|
566.63
|
3.09
|
6,476.29
|
188.92
|
0.13
|
Including
|
564.34
|
564.79
|
0.45
|
40,944.00
|
1,194.40
|
0.91
|
CS-19-08W1
|
558.00
|
560.50
|
2.50
|
12,738.55
|
371.60
|
0.09
|
Including
|
559.40
|
560.00
|
0.60
|
50,583.39
|
1,475.59
|
0.30
|
CS-19-08W2
|
545.00
|
549.00
|
4.00
|
7,259.50
|
211.77
|
0.20
|
Including
|
547.20
|
547.50
|
0.30
|
70,380.15
|
2,053.10
|
2.61
|
CS-19-08W3
|
568.00
|
569.00
|
1.00
|
56.40
|
1.65
|
1.35
|
CS-20-22
|
563.90
|
564.50
|
0.60
|
4,971.39
|
145.02
|
0.39
|
Including
|
564.15
|
564.50
|
0.35
|
8,338.41
|
243.24
|
0.66
|
CS-20-22
|
407.00
|
419.00
|
12.00
|
29.05
|
0.85
|
0.00
|
Including
|
409.45
|
409.85
|
0.40
|
368.70
|
10.76
|
0.01
|
Notes:
|
1. True widths are
estimated to be 50% to 70% of the reported downhole
intercepts;
|
|
2. CS-20-22
interval at 563.90 m to 564.50 m was not used in the Inferred
resource calculation.
|
Table 4: Drill Hole Coordinates Table
Hole
Name
|
Easting
|
Northing
|
Elevation
|
Azimuth
|
Dip
|
Start
Depth
|
End
Depth
|
Length
|
CS-19-08W1
|
520914
|
5279950
|
415
|
134
|
-50
|
495.03
|
611.00
|
115.97
|
CS-19-08W2
|
520914
|
5279950
|
415
|
134
|
-50
|
444.30
|
602.00
|
157.70
|
CS-19-08W3
|
520914
|
5279950
|
415
|
134
|
-50
|
425.00
|
620.00
|
195.00
|
CS-19-08W4
|
520914
|
5279950
|
415
|
134
|
-50
|
371.40
|
629.00
|
257.60
|
CS-19-20
|
521004
|
5279544
|
415
|
43
|
-70
|
0.00
|
701.00
|
701.00
|
CS-19-21
|
521004
|
5279544
|
415
|
30
|
-70
|
0.00
|
755.00
|
755.00
|
CS-20-22
|
521004
|
5279544
|
415
|
36.8
|
-67
|
0.00
|
695.00
|
695.00
|
CS-20-23
|
520902
|
5279983.93
|
415
|
133.1
|
-51.3
|
0.00
|
884.00
|
884.00
|
Quality Control/Assurance
During the 2019 and early 2020 drilling program, assay samples
were taken from the NQ core. Samples were collected using a
0.3-metre minimum length, one-meter maximum length. Drill core
recovery averaged 95%. A strict QA/QC program was applied to all
samples, which includes insertion of mineralized standards and
blank samples for each batch of 20 samples. The drill core was
split with one half of the 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. Core samples were sent for assaying
to Swastika Laboratories Ltd. in Swastika, Ontario, and ALS laboratory at
Rouyn-Noranda, QC. For the
high-grade intercepts, only ¼ of the core has been sent to
laboratory for assaying.
Qualified Person
The technical information in this news release was prepared
under the supervision of Mr. Merouane
Rachidi, Ph.D., P.Geo., (PGO, OGQ, APEGNB and AIPG) of
GoldMinds Geoservices, independent qualified person in accordance
with National Instrument 43-101.
About Canada Silver Cobalt Works Inc.
Canada Silver 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 Silver 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 Silver Cobalt Works Inc.