COQUITLAM, BC, Oct. 30, 2020 /CNW/ - Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTCQB: CCWOF) (Frankfurt: 4T9B) (the "Company" or "Canada Silver Cobalt") is pleased to announce that it has entered into an option agreement with MagNor Resources (MagNor) dated October 26 , 2020 (the "Agreement") whereby Canada Silver Cobalt may earn an undivided 100% Interest, subject to a 2% NSR, in the MagNor's B2 property in Quebec, Canada. The property has 12 claims totaling 670 hectares (6.7km2). The Agreement is subject to TSX Venture Exchange ("Exchange") acceptance.
Highlights of Property
The NNW-SSE mineralized zone is traceable along strike over 1 kilometer and is open in all directions.
A stripped zone exposed a length of 35m of massive sulphides 8-10m wide.
- A total of 6 grab samples were sent to ALS Laboratory in Val-d'Or for analysis of a package of multi-elements. Assay results returned massive Ni-Cu-Co mineralization (see Figure):
- 1.05 % Ni, 0.13 % Cu, 0.10 % Co
- 0.96 % Ni, 0.10 % Cu, 0.09 % Co
- 0.69 % Ni, 0.62 % Cu, 0.19 % Co
- for the epithermal veinlets associated with quartz injections:
- 9.28 % Cu, 18.2 g/t Ag, 0.34 g/t Au
- 2.97 % Cu, 5.7 g/t Ag, 0.29 g/t Au, 0.10 % Ni
- Anomalous values in Ti (1.1 %), P (0.45 %) and Mn (0.12 %) in mylonitic ferro-gabbro with 0.14% Cu associated with mineralization in pyrrhotite, pyrite and chalcopyrite stringers (5-10 %)
The B2 Ni Cu property contains new showings for Ni-Cu-Co that were discovered in August 2019 by Alain Berclaz & Frederic Bergeron. It is located in NTS 22E11 of the Saguenay Lac-St-Jean region of Quebec. The property is easily accessed by well-maintained logging roads and forest trails from the KM92 of the Passes Road (R250 & R251).
"With the increasing demand of lithium ion batteries for electric vehicles (EV), optioning this property fits well within the company's battery metal development program" said Frank J. Basa, P.Eng CEO. "With high-grade near-surface mineralization, the company has mobilized a geological team to the site to plan an exploration program."
Mineralization on the property is of three types
- Magmatic Ni-Cu-Co associated with anorthosite consisting of massive sulphides up to 5m wide, composed of 65-90% coarse-grained pyrrhotite (-pentlandite), pyrite, chalcopyrite and 10-30% host rock fragments.
- Magmatic Fe(-Ti-P-V) associated with anorthosite, leuco-gabbro, gabbronorite, norite and pyroxenite consisting of up to 5m-thick layers, lenses and veins of massive oxides (mainly magnetite).
- Epithermal Cu-Ag-Au associated with late pegmatitic quartz veins and monzogranite consisting of up to 1m-thick, semi-massive, brecciated stockwork, veinlets, and stringers of pyrite, chalcopyrite and bornite.
Terms of the Agreement
Pursuant to the terms of the Agreement, the Company may exercise the option with MagNor as follows:
- On Closing, making a payment of $62,500(1);
- 24 months from Closing, making a payment of $62,500(1);
- 36 months from Closing, making a payment of $62,500(1); and
- 36 months from Closing, incurring an aggregate of $100,000 in Exploration Expenditures on the Ni Cu property;
Payment can be made in cash or through the issuance of Canada Silver Cobalt shares at a price per common share equal to the volume weighted average trading price of the Company's shares on the Exchange for the ten (10) trading days immediately preceding the Closing Date, at the option of the Company.
All securities issued in connection with this transaction will be subject to a four month and a day hold period in accordance with applicable securities laws.
The technical information in this news release has been reviewed by Claude Duplessis, P.Eng., GoldMinds Geoservices Inc. member of Québec Order of Engineers and a qualified person in accordance with National Instrument 43-101 standards.
About Canada Silver Cobalt Works Inc. www.canadasilvercobaltworks.com
Canada Silver Cobalt Works released the first-ever resource in the Gowganda Camp and greater Cobalt Camp in May 2020. 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 Robinson Zone beginning at a vertical depth of approximately 400 meters was calculated. The discovery remains open in all directions (1A and 1B are approximately 800 meters from the east-trending Capitol Mine workings) (mineral resources that are not mineral reserves do not have demonstrated economic viability) (refer to Canada Silver Cobalt Works Press Release May 28, 2020). Canada Silver Cobalt's flagship Castle mine and 78 sq. km Castle Property feature 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.
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.
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