Canada Cobalt Works CEO Frank Basa joined INN at PDAC to discuss exploring for silver on the company’s Castle East project.
Canada Cobalt Works CEO Frank Basa joined the Investing News Network at the 2020 Prospectors & Developers Association of Canada conference to discuss his company’s progress exploring for silver on the company’s Castle East silver-cobalt project.
Canada Cobalt Works (TSXV:CCW,OTCQB:CCWOF) originally targeted the project for its cobalt potential, however, after additional exploration revealed significant amounts of silver, the company adjusted its exploration plan to target new zones of mineralization.
Based on the recommendation of one of the company’s geologists, Basa invested in new equipment to help improve the efficiency of the company’s exploration work. “We got a special camera from China and $26,000 later, it gave us the orientation of the silver structure,” said Basa. “We did a few wedges and the first came in at 50,000 g/t silver and the second one came in at 70,000 g/t silver, so we’re expanding on that.”
The town of Cobalt, where the project is located, was named for its wealth of the blue metal. Original work in the area focused on silver production, with the excess cobalt thrown away into waste pilings, however, market dynamics and the emergence of the electric vehicle has changed the resource economics of the area. “The old-timers threw the cobalt away and only focused on the silver. So we thought okay, we’ll go after the cobalt because lithium-ion batteries require cobalt,” said Basa. “But sure enough, we pulled up the hole we did in 2011 and we found an exceedingly large amount of silver to the point that we’re finishing downhill geophysics to see if we can increase our ability to hit the silver structure. We originally thought there was only one structure, now I think we have three.”
Moving forward, Basa and his team intend to continue to explore the silver mineralization on the property. “After the geophysics is done we will drill a little more, then we’ll put a ramp down,” said Basa. “We have about 1.2 million ounces of silver, so it’s about $20 million. The ramp is $6 million, so the ramp will pay for itself.”
Canada Cobalt Works intends to conduct further drilling on the property to expand the potential resource. According to Basa, a recent drilling miscalculation actually ended up benefiting the company, creating a happy accident that resulted in the intersection of another mineralization structure.
(Image below shows potential ramp to be constructed down to the Castle East silver discovery.)
“What happened was the drillers pushed the rods, so they missed the target by 95 meters. I was at a conference and I kind of lost it, but somehow we hit another silver structure,” he said. “So instead of being 20 meters within the discovery hole, we’re now 95 meters away and we hit another high-grade silver structure, so it turned out OK. It was all by chance.”
Based on his experience working with Agnico Eagle Mines (NYSE:AEM,TSX:AEM) in the cobalt camp, Basa intends to pursue the production of both silver and cobalt sulfate if possible, however, he still feels that there is a significant amount of drilling to be done. “We call ourselves an exploration play. We’re still pretty crazy about doing more drilling. I’ve never seen numbers like that in the camp before, and we’ve been in the camp since the early 80s,” he said.
For a more comprehensive update from Canada Cobalt Works CEO Frank Basa, watch the video above.
This interview is sponsored by Canada Cobalt Works (TSXV:CCW). This interview provides information that was sourced by the Investing News Network (INN) and approved by Canada Cobalt Works in order to help investors learn more about the company. Canada Cobalt Works is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
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