Green Swan Adds 2,800 Hectares to Cobalt Portfolio in Gowganda, Ontario
March 28, 2017 (Source) — Green Swan Capital Corp. (TSXV: GSW) (“Green Swan”) announces that it has entered into an agreement to acquire 2,800 hectares in five large unpatented claim blocks located in the Gowganda region of north-eastern Ontario.
This region produced 60.1 million ounces of silver and 1.4 million pounds of cobalt between 1910 and 1989, representing 11% of the total silver and 6% of the total cobalt endowment of the Cobalt-Gowganda camp. This output came from ten separate mines, with the Miller-O’Brien mine in Nicol Township being the largest (production of 38.0-million ounces silver and 0.8-million pounds cobalt (Ontario Geological Survey, Open File Report 6318). The claim blocks being acquired do not cover areas of past production.
Gowganda is located 85 km northwest of the town of Cobalt and its world famous silver-cobalt camp, and roughly 120 km north of Green Swan’s other cobalt assets in Sudbury, Ontario. Infrastructure is readily available in the region in the form of Highways 560 and 65 as well as several secondary roads.
Green Swan has been aggressively acquiring strong cobalt assets in ethical jurisdictions (Ontario and Quebec), with a view to supplying the skyrocketing demand in cobalt. Cobalt is a key component in the cathode of those batteries, for cell phone, laptops, hand held tools and most importantly electric vehicles. Cobalt pricing on the London Metal Exchange has increased roughly 250% since February, 2016, and management believes that the price will continue to trend upwards for the foreseeable future.
The silver-cobalt deposits at Gowganda occur within fracture-fill type carbonate veins that include a wide variety of minerals containing combinations of cobalt-iron-nickel, arsenic-antimony-sulphur and minor amounts of chalcopyrite and galena. The veins occur within Nipissing Gabbro sills that have intruded Archean metavolcanic rocks which are unconformably overlain by flat-lying meta-sedimentary rocks of the Coleman Member of the Gowganda Formation. The veins tend to be vertical to sub-vertical, narrow and somewhat discontinuous, but very high-grade.
The claim blocks being acquired were targeted to cover mineral occurrences documented in the Ontario Mineral Deposits Inventory database and prospective Nipissing Gabbro sills. Management is of the opinion that these blocks are highly prospective for cobalt, silver and copper.
Get our daily investorintel update
Historic exploration conducted on the claim blocks is described below as taken from the Ontario Mineral Deposits Inventory database website (http://www.mndm.gov.on.ca/en/mines-and-minerals/applications/ogsearth/mineral-deposits-mdi):
- Morel (36 units) covers the Solid Silver (MDI41P15SE00009) and Bloom Lake (MDI41P15SE00015) occurrences, along with a five kilometer section of a Nipissing Gabbro sill. A value of 411g/t silver is reported from a single surface grab sample taken at Solid Silver. Values ranging from 219 to 603g/t silver, 0.3 to 0.9% cobalt, and 11.0 to 14.7% copper are reported from four surface grab samples taken at Bloom Lake. Previous underground exploration work at Bloom Lake includes development of a shaft and several adits;
- United Reef (48 units) covers the Unit Reef prospect (MDI41P10SE00006) and parts of several Nipissing Gabbro sills. A single drill hole intersection of 1,250g/t silver over 3.0 metres is reported at the Unit Reef prospect;
- Nicol (36 units) covers parts of a Nipissing Gabbro sill. Strong historic values have been reported to the west, northwest and east of Nicol. In particular, values of 50 and 7,800g/t silver were reported from two surface grab samples taken at the Byberg prospect (MDI41P10NE00046), 400 metres west of Nicol. At the Bishop occurrence (MDI41P10NE00002), 325 metres northwest of Nicol, a 365 metre shaft and adit were part of the development work, with values of 0.3% cobalt and 1.6% copper reported from a single surface grab sample taken there. To the east, values of 0.1% silver and 0.9% cobalt were reported from a single surface grab sample taken at the Powerful prospect (MDI41P10NE00065), 575 metres east of Nicol;
- Lawson (32 units) covers parts of a Nipissing Gabbro sill. A single grab sample taken from a trench exposing this same Nipissing Gabbro sill returned 65.4 oz/ton (1,844 grams) silver and 0.2% cobalt at the Lacarte prospect (MDI41P10SE00008) located 2.5 km north of Lawson.
All historic sample results quoted above have not been verified by Green Swan. Grab samples are selective by nature and may not be representative of the rest of the claim blocks. Green Swan has not yet carried out any field work on these blocks. All historic work was carried out by third parties and Green Swan will have to carry out work to test the historic results.
The purchase price for the four Gowganda claim blocks is a total of $72,750 in cash and 450,000 units issued at a deemed price of ten cents per unit with each unit consisting of one common share and one common share purchase warrant exercisable at $0.15 for a period of eighteen months from the date of issue . The 450,000 units would be subject to a hold period of at least four months and a day. In addition, Green Swan will grant to the vendor a Net Smelter Returns Royalty of 2%, with half of such NSR re-purchasable at any time at Green Swan’s option for $1,000,000.
The vendor is arm’s length to Green Swan. The acquisition is subject to regulatory approval.
In addition, as previously announced, Green Swan’s management is proposing to change the name of the company to “CBLT Inc.”. Management feels this name is more descriptive of the company’s focus on strong cobalt assets and will bring greater attention in the global markets. The Company has reserved “CBLT” as a new trading symbol and shareholders will be asked at the April 24, 2017 shareholder meeting to approve the name change.
The technical contents of this release were approved by Dr. Tom E. McCandless, P.Geo., an independent director for Green Swan and a qualified person as defined by National Instrument 43-101. None of the claims blocks have been the subject of a National Instrument 43-101 report and Dr. McCandless has not verified the technical data disclosed in this release.
About Green Swan Capital Corp.
Green Swan Capital Corp. is a Canadian mineral exploration company with a proven leadership team, targeting cobalt in reliable mining jurisdictions. Green Swan is well-poised to deliver real value to its shareholders. With the Gowganda acquisitions, Green Swan continues to build its impressive portfolio of assets in mining-friendly jurisdictions, including its main Sudbury asset, Dryden Cobalt, Otto Lake, Chilton Cobalt, Geneva Lake, Ryliejack and Mikayla.
Forward Looking Statements
This news release contains certain statements that constitute forward-looking statements as they relate to the Company and its management. Forward-looking statements are not historical facts but represent management’s current expectation of future events, and can be identified by words such as “believe”, “expects”, “will”, “intends”, “plans”, “projects”, “anticipates”, “estimates”, “continues” and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.
By their nature, forward-looking statements include assumptions and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this new release, the Company will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities laws, the Company assumes no obligation to update or revise any forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: reliance on key personnel; risks of future legal proceedings; income tax matters; availability and terms of financing; distribution of securities; effect of market interest rates on price of securities, and potential dilution.
On Behalf of the Board of Directors
GREEN SWAN CAPITAL CORP.
“Peter M. Clausi”
Peter M. Clausi
CEO and Director
Neither 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.
InvestorIntel is a trusted source of reliable information at the forefront of emerging markets that brings investment opportunities to discerning investors.