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Canada Silver Cobalt Works Inc

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Canada Silver Cobalt Extends Robinson Zone High-Grade Silver Discovery

Canada NewsWire

COQUITLAM, BC, June 11, 2020 /CNW/ - Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the "Company" or "Canada Silver Cobalt") is pleased to announce that Phase 2 drilling at Castle East has quickly expanded the potential scale of the Robinson Zone high-grade silver discovery, open in all directions.

The latest drill hole, CS-20-24, further demonstrates continuity of vein structures over an increasingly broad area consistent with a robust mineralizing event immediately east of three past producers in Northern Ontario's Gowganda Camp.

Highlights:

  • CS-20-24, the just-completed first hole of Phase 2, was collared 200 meters northwest of CS-20-22 and intersected three separate visually well-mineralized vein structures at shallower levels including native silver and cobalt arsenides within a 5-meter zone (core interval) approximately 47 meters above the Robinson Zone;
  • CS-20-24 is interpreted to be an extension of the original vein confirmed through historical drill hole CA-11-08 in addition to Canada Silver Cobalt's recent follow-up wedge holes;
  • A network of high-grade native silver veins has now been traced over a vertical distance of approximately 144 meters from the middle intersection in CS-20-24, at a vertical depth of 371 meters, to the second deeper intercept in CS-20-22 (representing a new vein) near the lower contact of the diabase with the Archean rocks.

Matt Halliday, Canada Silver Cobalt VP-Exploration, commented: "With the first hole of Phase 2 we've already opened up much more room for expansion of the very high-grade Robinson Zone, and many more high priority targets remain to be drilled. This appears to be a 'pregnant' system with strong potential for significant additional lateral and vertical extent given the increasing success we are having at hitting these narrow but exceptionally high-grade vein structures from surface. We eagerly anticipate the first batch of assays from CS-20-24.

"Our research shows that the Northern Ontario Silver-Cobalt Camp hasn't seen anything like this in at least several decades – a grassroots discovery of very unusual silver grades, comparable with those that helped make this region the birthplace of Canadian hard rock mining in the early 1900's," Halliday continued. "In addition, core from CS-20-24 shows promise for gold mineralization in the 326-meter Archean package drilled into above the Nipissing diabase, nearly half a kilometer northeast of the high-grade gold intercept in CS-19-19 (refer to March 2, 2020, news release)."

Next Drill Holes

Geologists are now preparing to drill a series of wedge holes, commencing early next week, from CS-20-22 and CS-20-24 in an attempt to follow the trail of native silver veins, similar to the strategy last December that also involved the successful use of downhole camera technology. GoldMinds Geoservices' custom-built downhole camera has been deployed once again and has provided valuable information with regard to CS-20-22 and the orientation of vein structures. It will also be used in the coming days to evaluate the vein structures intersected in CS-20-24.

Robinson Zone Inferred Resource

Notably, as disclosed in a maiden resource estimate May 28, 2020, zones 1A and 1B of the Robinson Zone entering Phase 2 had an average silver grade of 8,582 g/t (250 oz/ton) in a combined 27,400 tonnes of material for a total of 7.56 million Inferred ounces of silver using a cut-off grade of 258 g/t AgEq (mineral resources that are not mineral reserves do not have demonstrated economic viability). This resource estimate did not include the second vein discovered in CS-20-22.

Castle East in Perspective (Figure 1) (CNW Group/Canada Silver Cobalt Works Inc.)

Gold Target Above the Diabase

Starting 40 meters downhole and continuing to 368 meters, CS-20-24 intersected multiple potential gold-bearing quartz-carbonate multi-generational veins with sulphide mineralization and intense alteration in the Archean package above the Nipissing diabase. Arsenopyrite was also noted in feldspar porphyry.

As reported by Canada Silver Cobalt March 2, 2020, the last drill hole that targeted gold mineralization at Castle East (CS-19-19) intersected 4.3 g/t Au over 4 meters and 1.5 g/t over 12.5 meters within a 30-meter mineralized zone (core length, true width unknown at this time) grading 0.70 g/t Au (vertical depth approximately 240 meters). This broad interval included 1 meter that returned 15.2 g/t Au. This early stage gold discovery is approximately 460 meters southwest of the visually encouraging zones encountered in CS-20-24. The potential relationship between the two areas is being investigated as geologists await assays for this latest hole.

Robinson Zone Drill Core Photo – CS-20-24 (Figure 2) (CNW Group/Canada Silver Cobalt Works Inc.)

Drill Hole Map (Figure 3) (CNW Group/Canada Silver Cobalt Works Inc.)

Regional Map (Figure 4) (CNW Group/Canada Silver Cobalt Works Inc.)


Castle Property Location

The Castle Property is 15 km east of Pan American Silver's Juby gold deposit, 30 km due south of Alamos Gold's Young-Davidson mine, 75 km southwest of Kirkland Lake Gold's Macassa Complex, 80 km northwest of CCW's Temiskaming Testing Lab/processing facility in the town of Cobalt, and 100 km southeast of new gold discoveries in the Timmins West area.

Quality Assurance/Quality Control

Castle East core samples were collected using a 0.3-meter minimum length and a 1-meter maximum length. Drill core recovery averaged 95%. Two quality control samples (blank and standards) were inserted into each batch of 20 samples. The drill core was sawn 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. Where silver was visually and significantly present, a pulp-metallic analysis on full sample was requested for the silver and gold assays where the entire sample is dried, weighed and crushed over 95% then fully pulverized and passed through 200-mesh screen to create a plus 200-mesh fraction (metallics) and a minus 200-mesh fraction (pulp). The minus 200-mesh fraction (fines) was run using geochemical analysis with AA finish for Ag, Au, Cu, Ni, and Co. The entire +200 mesh (coarse) fraction was analyzed using gravimetric processes (fire assay) for both Ag and Au to provide a weighted average assay for the entire sample.

Swastika Laboratories is an ISO 17025 certified lab independent of Canada Silver Cobalt.

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 Silver Cobalt Works Inc.

Canada Silver 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, a processing facility (TTL Laboratories) in the town of Cobalt, 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 Canadian leader in the silver-cobalt space.

"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.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/June2020/11/c7239.html

Frank J. Basa, P.Eng., President and CEO, 1-416-625-2342; Marc Bamber, Director, mb@buffaloassociates.com, +44-7725-960939Copyright CNW Group 2020

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