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Located only 5 km from Agnico Eagle's Macassa Mine, one of the highest-grade gold mines in the world with over 5 million ounces poured, this third property acquisition of 190 hectares amalgamates 1,000 hectares of highly prospective land situated in the most prolific high-grade gold-bearing area of Northern Ontario.
Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTCQB: CCWOF) (FSE: 4T9B) (the "Company" or "Canada Silver Cobalt") is pleased to announce that it has entered into an Option Agreement to acquire the 190 hectares, known as the Allsopp property (the "Property") to expand it's prospective Eby-Otto gold property.
Acquisition Highlights:
The Property lies within the prolific Kirkland Lake district and is located 5 km southwest of the high-grade Macassa Gold Mine currently operated by Agnico Eagle. It is contiguous to claims owned by Agnico Eagle towards the northeast.
This acquisition fills in key gaps covering geologically favourable areas within the 810-hectare Eby-Otto property acquired in 2021 and contains key features such as a historic shaft and exposed veins near surface containing base metal mineralization.
The total land package increases to 1,000 hectares and significantly extends the strike length of the Eby-Otto fault coverage.
This consolidation more than doubles the strike length along a major alteration trend (OGS OFR 6184, see Figure 1 below), which is commonly indicative of potential gold mineralization seen in the Kirkland Lake-Larder Lake areas.
Matthew Halliday P.Geo, President of Canada Silver Cobalt Works stated, "We are geared up to accelerate this project in 2022. We have a team with proven success in the Kirkland Lake camp and we are ready to take action and bring real value to this property. We will be completing a drone survey to collect some important geological information very soon, and this will help us make informed decisions as we begin work on these properties. We want boots on the ground and the drill bit turning as soon as possible."
These new claims are extremely interesting because of the host rocks seen in outcrop, sulphide mineralization, and alteration zones. The rocks in this claim package show similar parallels to the South Mine Complex at Macassa, which is characterized by finely disseminated pyrite, wide alteration zones, and quartz veining and/or flooding. In addition to this, the surrounding Eby-Otto claims comes highly recommended by Doug Robinson, a highly respected geologist with an exceptional record of precious metal discoveries over the past 50 years. These new gold properties have our geologists very excited about the upcoming field season. The 2022 exploration plan for the newly consolidated Eby-Otto property includes drone geophysics, stripping of outcrops, channel sampling, and geological mapping. Results of this field season help refine and add to the planned drill program.
Figure 1: Location of existing and newly acquired Allsopp Claims acquired on February 8th, 2022, showing proximity to Kirkland Lake and Agnico Eagle's Macassa Mine.
To view an enhanced version of Figure 1, please visit:
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Terms of the Acquisition
Claim Holder Arnold Allsopp grants the option to Canada Silver Cobalt Works Inc. to acquire, over a period of 4 years, 100% of the Property in return for cash payments totalling $100,000, the issuance of 400,000 common shares of Canada Silver Cobalt Works and incurring a total of $340,000 in exploration expenditures on the Property. In addition, Allsopp will retain a 3% royalty if Canada Silver Cobalt Works completes the entire option. Canada Silver Cobalt Works will be the operator and will manage all exploration work throughout the term of the option. The Option Agreement is dated February 8, 2022. The Transaction is subject to TSX Venture Exchange approval.
All shares issued are subject to a 4 month plus one day hold period in accordance with applicable securities laws.
Details of the Property
The property that is being acquired by Canada Silver Cobalt Works is in an area that has long held the interest of geologists because of its close proximity to the high-grade underground Macassa Gold Mine, currently operated by Agnico Eagle. The South Mine Complex at Macassa is characterized by structurally controlled zones of finely disseminated pyrite, visible gold and tellurides and consists of wide, gold-bearing alteration and mineralization haloes. The Macassa Gold Mine, which commenced operations in 1933, has produced more than 5 million oz gold, has benefited from new discoveries within its property over the years, and still has one of the highest reserve grades in the world (21.9 g/t Au, according to the Kirkland Lake Gold website). The greater Kirkland Lake area, situated along the Larder-Lake Cadillac Break has produced over 24 million ounces of gold. Geologists and major exploration companies have been searching for significant gold west of the Macassa Mine for decades.
Qualified Person
The technical information in this news release was prepared under the supervision of Mr. Matthew Halliday, P.Geo., (PGO), President, COO and VP Exploration of Canada Silver Cobalt Works Inc., a qualified person in accordance with National Instrument 43-101.
About Canada Silver Cobalt Works Inc.
Canada Silver Cobalt Works Inc. recently discovered a major high-grade silver vein system at Castle East located 1.5 km from its 100%-owned, past-producing Castle Mine near Gowganda in the prolific and world-class silver-cobalt mining district of Northern Ontario. This discovery has the highest silver resource grade in the world, with recent drill intercepts of up to 89,853 grams/tonne silver (2,621 oz/ton Ag). A drill program is underway to expand the size of the deposit with an update to the resource estimate scheduled for Q1 2022.
In May 2020, based on a small initial drill program, the Company published the region's first 43-101 resource estimate that contained a total of 7.56 million ounces of silver in Inferred resources, comprising very high-grade silver (8,582 grams per tonne un-cut or 250.2 oz/ton) in 27,400 tonnes of material from two sections (1A and 1B) of the Castle East Robinson Zone, beginning at a vertical depth of approximately 400 meters. Note that mineral resources that are not mineral reserves do not have demonstrated economic viability. Please refer to Canada Silver Cobalt Works Press Release May 28, 2020, for the resource estimate. Report reference: Rachidi, M. 2020, NI 43-101 Technical Report Mineral Resource Estimate for Castle East, Robinson Zone, Ontario, Canada, with an effective date of May 28, 2020, and a signature date of July 13, 2020.
CCW also has 39,017.96 hectares of electric vehicle (EV) battery metals exploration properties (containing nickel, copper, and cobalt) with 15 properties in Quebec and 1 in Northern Ontario. Exploration is underway at the Graal massive sulphide formation in Northern Quebec. Drill core has been encouraging with initial XRF results up to 2.79% nickel and 25.68% copper in hole NRC 21 03; lab results are still pending.
Canada Silver Cobalt's flagship silver-cobalt Castle mine and 78 sq. km Castle Property feature strong exploration upside for silver, cobalt, nickel, gold, and copper. With underground access at the fully owned Castle Mine, an exceptional high-grade silver discovery at Castle East, a pilot plant to produce cobalt-rich gravity concentrates on-site, a bulk 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 and battery metals. More information at www.canadasilvercobaltworks.com.
"Frank J. Basa"
Frank J. Basa, P. Eng.
Chief Executive Officer
For further information, contact:
Frank J. Basa, P.Eng.
Chief Executive Officer
416-625-2342
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.
Caution Regarding Forward-Looking Statements
This news release may contain forward-looking statements which include, but are not limited to, comments regarding the Offering and comments that involve other future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address the Offering, resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, future financings, availability of funds, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. No assurance can be given that the Offering will close on the terms and conditions set out in this news release or at all. General business conditions are factors that could cause actual results to vary materially from forward-looking statements. A detailed discussion of the risk factors encountered by Canada Silver Cobalt is available in the Company's Annual Information Form dated July 19, 2021, for the fiscal year ended December 31, 2020, available under the Company's profile on SEDAR at www.sedar.com.
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Table 1 – Total of 798 metres of NQ core was drilled over six holes.
Figure 1 – Werner Lake final DDH locations and access.