‘Significant breakthroughs’ in recent drilling as Canada Silver Cobalt Works expands Robinson Zone by 500%

In mining there is nothing more exciting than striking high grades. In the case of Canada Silver Cobalt Works Inc. (TSXV: CCW | OTCQB: CCWOF) (‘Canada Silver Cobalt’), they have recently managed to continue to drill very high grade silver at their Castle Property in the past-producing Gowganda Silver District of Northern Ontario, Canada.

On September 30, 2020 Canada Silver Cobalt announced that recent drilling had achieved some significant breakthroughs:

  1. Expansion of the Robinson Zone mineralization by 500%;
  2. Identification of 4 new mineralized veins in the first 9,000 of a 50,000 metre 2020 drill program at the Robinson Zone. This included another high grade silver result of 3,452 g/t silver over 0.4 metres.

Canada Silver Cobalt VP-Exploration, Matt Halliday, P.Geo., commented:

“We are excited about the drill program; we initiated a large-scale drill program and we are realizing the results. We have moved from a single vein at the Robinson to at least 4 mineralized veins, greatly expanding the potential for new high-grade panels. We have expanded the traditional mineralized horizon. It has been noted in literature that the upper third to upper half of the diabase sill is the mineralized horizon – it is now our belief that the entire diabase sill has the potential to be mineralized.”

In addition to the current 50,000m drill program to grow the resource, Canada Silver Cobalt is, at the same time, advancing the permitting process for an underground ramp construction in 2021 for the Robinson Zone.

The Company recently said that the ramp project was progressing well with project advancement in environmental studies, site development, community engagement, and First Nations consultations. Initially the ramp construction will act to provide underground exploration platforms to greatly enhance new discovery opportunities targeting high-grade silver at the Robinzon Zone.

Castle Mine and Property

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7.56 million ounce silver Maiden Resource at 8,582 g/t Au

Canada Silver Cobalt’s flagship is their 100% owned 78 sq. km Castle Mine and Property which features strong exploration upside for silver, cobalt, nickel, gold and copper. In May 2020 Canada Silver Cobalt announced a maiden resource with ‘phenomenal’ grades. The result was: Zones 1A and 1B have an average silver grade of 8,582 g/t (250.2 oz/ton) in a combined 27,400 tonnes of material for a total of 7,560,200 Inferred ounces of contained silver using a cut-off grade of 258 g/t AgEq. After adding in the lower grade Zone 2A the total is 7,567,000 inferred ounces of contained silver.

Canada Silver Cobalt also has two other early stage exploration projects – Violet Property and Beaver Property.

Location map showing Canada Silver Cobalt’s projects

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Closing remarks

Canada Silver Cobalt continues to make steady progress. The Company already has a very high grade 7.5 million ounce Maiden Inferred Resource, several valuable by-products, huge exploration upside, a plan in place to build an underground access ramp at Robinson Zone, 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 (Re-2OX) for the creation of technical grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations.

All this for a market cap of just C$60m means investors should have plenty to look forward to over the coming years assuming Canada Silver Cobalt continues to progress well.




Canada Silver Cobalt Works announces new name and maiden resource with high-grade silver

Silver prices have recovered ~45% since their low yet they are still about 50% below where they should be. This means silver miners right now represent extraordinary value, and should do well if the current silver price recovery continues as history would suggest is likely.

The gold-silver ratio is near an all-time high and currently at 98.5 to 1. This means gold is today worth a staggering 98.5 times more than silver. History tells us that the gold-silver ratio should be about 50:1. This is based on the 20th century average gold-silver ratio of 47:1. This means that silver is currently extremely undervalued to gold right now. Or put another way, based on the historical rate of 50:1, that would mean silver should be trading at US$ 34.34/oz (US$ 1,717 gold price/50). The current silver price is just US$ 17.45. Silver prices should be almost double based on the historical average gold-silver ratio, or about US$ 34/oz.

Based on the gold to silver historical ratio of 50, silver prices should now be about double

Source & Source

One very promising junior silver and cobalt miner is Canada Silver Cobalt Works Inc. (TSXV: CCW | OTCQB: CCWOF). The Company is developing three 100% owned, past-producing, high-grade silver-cobalt mines in the prolific Northern Ontario Silver-Cobalt Camp.

Canada Silver Cobalt Works three key historic mines in Northern Ontario, Canada

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The Castle Mine

Canada Silver Cobalt Work’s flagship Castle Mine and 78 sq. km Castle Property features strong exploration upside for silver, cobalt, nickel, gold and copper including exceptionally high grade veins of silver. Canada Silver Cobalt Works released yesterday a strong maiden resource estimate for the Castle East Robinson Zone.

The result was: Zones 1A and 1B have an average silver grade of 8,582 g/t (250.2 oz/ton) in a combined 27,400 tonnes of material for a total of 7,560,200 Inferred ounces of contained silver using a cut-off grade of 258 g/t AgEq. After adding in the lower grade Zone 2A the total is 7,567,000 inferred ounces of contained silver.

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Note: High grade is anything above 50 g/t silver (Ag). The above resource average grade was an exceptional 8,582 g/t.

Given the outstanding silver grades and strong maiden resource it helps explain the recent name change from Canada Cobalt Works Inc. to Canada Silver Cobalt Works Inc.

The Castle Property also has some gold potential. The only gold-focused drill hole at Castle East completed in 2019 (CS19-19) cut 4.3 g/t Au over 4 meters and 1.5 g/t Au over 12.5 meters within a 30-meter mineralized zone grading 0.70 g/t Au (vertical depth approximately 240 meters). This broad interval included 1 meter that returned 15.2g/t Au.

Matt Halliday, VP-Exploration, commented:

“We’re excited to continue drilling numerous remaining exploration targets. We’re seeing some phenomenal grades at Castle East, consistent with historical discoveries in the broader district going back to the early 1900’s. We see strong potential to expand and upgrade the known Inferred resource estimate, including higher up in the diabase, given the multiple targets we have.”

Canada Silver Cobalt Works is on track to be a vertically integrated silver producer with very valuable by-products. As well as planned silver production from Castle Mine material and processing of mine tailings, Canada Silver Cobalt Works intend to be a vertical integrated silver producer due to their strategic acquisition of PolyMet Resources Inc.’s Processing Facility located in the nearby town of Cobalt. The company has already demonstrated silver production capability from Castle Mine material with the pouring of silver bars at the PolyMet facility. Added to this is the Company’s proprietary Re-2OX Process that has produced cobalt sulphate exceeding battery industry specifications.

Canada Silver Cobalt Works has a First Nations agreement in place, and permitting is already underway. Other next steps include:

  • Continued exploration for silver, cobalt, gold and other metals in various vein structures at Level 1 underground at Castle Mine as well as surface drilling and a potential ramp in the Castle East Robinson Zone and further surface exploration in the new gold zone 1.5 km east of mine shafts and adit. Only a fraction of Castle East has been drill-tested and it is open in all directions. New drilling has commenced now on this high priority exploration zone.
  • Proceed with assaying, bulk sampling and bullion pouring operations at the newly acquired Temiskaming Testing Labs.
  • Tailings Program –Test work using gravity separation spiral concentrators towards establishing a mill for the processing of 600 tonnes of tailings per day.
  • Continued permitting work for the tailings program, a ramp at Castle East, and for constructing a state-of-the-art 600 t/d gravity, flotation, cyanidation mill.
  • Ongoing metallurgical testing using the proprietary Re-2OX process aimed at producing cobalt, nickel and manganese sulphates for end-buyer evaluation.

Closing remarks

Sometimes the stars all just align and everything comes together in a positive way.

With Canada Silver Cobalt Works we have a low market cap (C$51 million) vertically integrated miner with not one, but three promising projects in Canada with very high silver grades and exploration upside; all when the silver price looks set to surge. The Company also has other high value metals such as cobalt, nickel, gold and copper. The cobalt price is also currently very low with demand expected to surge and lift prices over the next few years as the EV boom takes off.

Investors should definitely have Canada Silver Cobalt Works on their radar as the company continues to progress very well.




Prophecy’s John Lee on securing a resource estimate of over 50 million ounces of high grade silver

“It is only recently that we started the program on this wonderful silver project called Pulacayo in Bolivia. We acquired the project in 2015 at the bottom of the cycle when silver was $14/oz…This is the second-largest silver mine in the world based on historical production…This is a very well advanced, low technical risk project…It has a feasibility study, it is fully environmentally compliant. It has a social license to operate in Bolivia and it has over 95,000 meters of drilling which resulted in a resource estimate of over 50 million ounces of silver at a very high grade.” States John Lee, Executive Chairman of Prophecy Development Corp. (TSX: PCY | OTCQX: PRPCF), in an interview with InvestorIntel’s Peter Clausi.

John went on to say that the previous operator had spent over $25 million in developing the project. The project has a paved road, access to power and water and there are several mills close to the project. In the last two years, Prophecy has brought in very competent people on board who can take the project all the way to production. The three people who came on board have over a hundred years of experience in commissioning, permitting, exploring and operating mines in Nevada and elsewhere in the world. John also provided an update on Prophecy’s recently announced private placement. He said that the private placement has been fully subscribed and a prominent investor took the bulk of the financing.

To access the complete interview, click here

Disclaimer: Prophecy Development Corp. is an advertorial member of InvestorIntel Corp.