CANADA SILVER COBALT BEGINS DRILLING AT EBY-OTTO GOLD PROPERTY
The Eby-Otto property is located in a prime geological setting with mineralized veins identified at surface, and is proximal to both the Cadillac-Larder Lake Break and an existing high-grade gold mine.
Coquitlam, BC, October 26, 2022 – Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the « Company » or « Canada Silver Cobalt ») announces that it has begun diamond drilling at its Eby-Otto gold property near the town of Kirkland Lake.
The planned 2,000-2,500-meter drill program is being conducted by Laframboise Drill Inc. and is part of the Company’s Phase II exploration activity at Eby-Otto.
This initial drilling may include targets such as:
- Regional fault structures such as the Cadillac-Larder Lake Break and/or Eby-Otto Fault.
- Regional mapped alteration zones and areas of increased sulphides.
- Mapped surface veins with anomalous gold mineralization.
- Areas with high potential based on the drone mag and existing local 2D EM.
The Company has also initiated a 3D IP Resistivity geophysics survey at Eby-Otto to be completed by Dias Geophysical as part of its Phase II exploration at the property (see news release October 24, 2022).
“We are excited to start drilling at Eby-Otto. It is a very promising land package close to a producing mine with outcropping mineralized veins already identified. Our geological team has done a good amount of work there already this year with channel samples taken at key outcrop locations and sent to the lab for analysis (assays pending). We are looking forward to the results of both the channel sampling and the drilling,” said Matthew Halliday, P.Geo., President and COO.
The Company has outlined the planned three exploration phases at the property as follows:
Phase I: The first phase consisted of an initial site assessment to determine the logistics of future operations and to provide the Company time to receive any pending surface exploration work permits that will be necessary. Surveying was completed for key standard iron bars (SIB), legacy claim posts, and access points to refresh select existing cut line grids. An overall geological assessment was completed based on field work consisting of geological mapping and stripping key outcrops. A drone magnetic survey on the entire claim package was completed by EarthEx Geophysical Solutions Inc.
Phase II: The second phase of exploration will be based on the results from Phase 1 and will expand to include a ground 3D IP/EM survey on the entire claim package which will compliment the magnetic survey completed earlier this year. A 2,000 – 2,500m diamond program will be completed to intercept targeted areas of strong potential. The targets will be based on the geophysical data provided by the drone magnetic survey, historic geological data, regional geophysics, geological mapping, and existing selective 2D electromagnetic (EM) surveys completed by geologist Doug Robinson prior to the Company’s acquisition of the property. This will help refine Phase III.
Phase III: The third phase of exploration will expand on the drilling and field work outlined in Phase II. The Company will combine the IP/EM ground survey and cross reference the geophysical anomalies between the magnetic and IP/EM survey. The technical team will correlate the information gathered from Phase I and Phase II with known mineralization that has been identified via field work to better refine the targets, and adjust the exploration accordingly. Phase III is estimated to begin in January 2023.
The Company has option agreements on contiguous properties covering 1,000 ha at Eby-Otto and the area, importantly, includes approximately 5km of strike length along the Eby-Otto Fault and along a major alteration trend (OGS OFR 6184). The property is within the Kirkland Lake gold district in northeastern Ontario and is located within 5km of Agnico-Eagle’s producing, high-grade Macassa Gold Mine.
The technical information in this news release was approved and prepared under the supervision of Mr. Matthew Halliday, P.Geo., (PGO), President and COO 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. The Company has completed a 60,000m drill program aimed at expanding the size of the deposit with an update to the resource estimate underway.
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.
The Company also has: (1) 14 battery metals properties in Northern Quebec where it has recently completed a nearly 15,000-metre drill program on the Graal property; and (2) the prospective 1,000-hectare Eby-Otto gold property close to Agnico Eagle’s high-grade Macassa Mine near Kirkland Lake, Ontario where it is exploring.
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, 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. 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
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Caution Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services 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 which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, 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. 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.