News - Drill Results
Canada Silver drills 0.3 m of 7,981 g/t Ag at Castle East
2021-07-26 10:30 ET - News Release
Mr. Frank Basa reports
CANADA SILVER COBALT CONTINUES TO EXPAND "BIG SILVER" AT CASTLE EAST WITH ADDITIONAL DOWN-DIP HIGH-GRADE INTERCEPTS OF 2,736 AND 7,981 G/T AG
Canada Silver Cobalt Works Inc. has released assay results of additional intersections of high-grade silver of 2,736 and 7,981 grams per tonne silver belonging to the Big Silver vein (Vein 2) at Castle East in Northern Ontario -- further defining and expanding this exceptional high-grade silver zone initially discovered with hole CS-20-39 which had earlier recorded intercepts of up to 89, 853 g/t Ag (2,621 ounces per ton) over 0.30 metre (see Jan. 29, 2021, April 26, 2021, and June 16, 2021, news releases).
Matt Halliday, PGeo, president, chief operating officer and vice-president of exploration, commented: "The latest drill results bring us closer to a significant expansion of silver resources in the next resource update which we have scheduled for Q1 2022 and which supports our view that Castle East could progress into being a full-fledged mine, producing silver and other metal by-products such as cobalt and nickel.
"The Castle East grades are truly exceptional -- among the highest silver grades in the world -- and are comparable to the high silver grades (and vein widths) that were very profitably mined during the silver mining boom in the early 1900s in the Greater silver-cobalt camp which included the past-producing Castle, Capitol, and O'Brien high-grade underground silver mines (with cobalt by-product) all within two kilometres of our Castle East discovery near Gowganda, Ont.," Mr. Halliday stated.
"We're putting the building blocks together for a new mine, including working on the design and permitting of a ramp down to the high-grade veins (studies for permitting of the ramp to be completed in the first half of 2022). In addition, we have upgraded the TTL bulk processing facility we own in nearby cobalt so that we are able to mill the high-grade bulk samples we extract and use TTL's bullion furnace to pour silver dore bars (as several companies such as Agnico Eagle and Teck have done in the past).
"Our earlier discovery of the Robinson zone (60 metres away from Big Silver) with its vein intercepts of up to 70,380 g/t Ag (2,053 oz/ton) over 0.3 m was, by itself, the basis of our initial resource estimate published in May, 2020. Since then, we have drilled 39,000 m of a 60,000-metre drill program and have intersected an additional seven mineralized veins including Big Silver, which is bigger in size than the Robinson vein, and an additional high-grade vein system in between the Robinson and Big Silver vein system. We expect that the seven new veins, along with others we may still discover during the continuing drilling at Castle East, will contribute to a major increase in the upcoming resource estimate," Mr. Halliday added.
Drill highlights
- Significant silver intercept in hole CS-21-54 grading 7,981 g/t Ag (232.82 oz/ton) over 0.30 m at a downhole depth of 484.87 m to 485.17 m with a gold equivalent grade of 3.25 oz/ton Au (111.41 g/t Au). The intersection is 15 m down dip from the pilot intercept in hole CS-20-39;
- Another silver intercept in hole CS-21-51 grading 2,736 g/t Ag (79.81 oz/ton) over 0.30 m at a downhole depth of 448.55 m to 448.85 m with a gold equivalent grade of 1.11 oz/ton Au (38.21 g/tonne Au). The intersection is six m down dip from the pilot intercept in CS-20-39;
- We believe that these two intersections belong to the same structure as Big Silver. Intercepting this zone again from surface drilling increases the company's confidence in its geologic model and demonstrates the continuity of this structure -- expanding the zone by a total of 15 metres.
With CS-20-51 and CS-20-54 containing valuable intercepts to the expansion of Big Silver and to the Robinson zone area, the company is developing a better understanding of these vein systems and will continue to explore the veins from surface and with wedge drilling.
SAMPLE DETAILS Hole ID Sample No. From (m) To (m) Length (m) Ag g/t CS-20-54 484.87 485.52 0.65 4233.3 Including 13432 484.87 485.17 0.3 7981 13433 485.17 485.52 0.35 1021 CS-20-51 448.2 448.85 0.65 2040.25 Including 13366 448.2 448.55 0.35 1443.9 13367 448.55 448.85 0.3 2736 Note Gold equivalent is calculated based on $25.17 (U.S.) oz/ton Ag and $1802.30 (U.S.) oz/ton Au as of July 23, 2021.
Ongoing drilling in the Castle East area is geared toward identifying new veins to enable significant expansion to the existing resource panels outlined in the company's maiden resource estimate reported in a news release May 28, 2020. The resource estimate identified zones 1A and 1B of the Robinson zone with an average silver grade of 8,582 g/t (250 oz/ton) in a combined 27,400 tonnes of material for a total of 7.56 million inferred ounces of silver using a cut-off grade of 258 g/t silver equivalent (mineral resources that are not mineral reserves do not have demonstrated economic viability). Report reference: Rachidi, M. 2020, National Instrument 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.
Location
The Castle property is 15 km east of Aris Gold Corp.'s Juby gold deposit, 30 km due south of Alamos Gold's Young-Davidson mine, 75 km southwest of Kirkland Lake Gold's Macassa complex, and 100 km southeast of new gold discoveries in the Timmins West area.
Qualified person
The technical information in this news release was prepared under the supervision of Mr. Halliday, PGeo, APGO, president, COO and VP of exploration of Canada Silver Cobalt, a qualified person in accordance with National Instrument 43-101.
About Canada Silver Cobalt Works Inc.
Canada Silver Cobalt recently discovered a major high-grade silver vein system in the Castle East area 1.5 km from the past-producing Castle mine near Gowganda, Ont., in the prolific high-grade Silver District of Northern Ontario. The company 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 uncut 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 metres, was identified. The discovery remains open in all directions (1A and 1B are approximately 800 metres from the Capitol mine workings) (mineral resources that are not mineral reserves do not have demonstrated economic viability) (refer to Canada Silver Cobalt press release May 28, 2020).
Canada Silver Cobalt's flagship silver-cobalt Castle mine and 78-square-kilometre Castle property feature strong exploration upside for silver, cobalt, nickel, gold and copper. With underground access at Castle, an exceptional high-grade silver discovery at Castle East, 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 formulations, Canada Silver Cobalt is strategically positioned to become a Canadian leader in the silver-cobalt space.
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