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Canada Cobalt: Big Drill Results Plus Bonus Gold Discovery

Jeff Nielson Jeff Nielson, Stockhouse
0 Comments| December 18, 2018

For Canadian mining investors looking for a strong cobalt play, it’s hard to overlook Canada Cobalt Works Inc. (TSX: V.CCW, OTCQB: CCWOF, Forum). Stockhouse introduced this Company to investors in a full-length feature article from August 9, 2018.

CCW boasts several qualities that will be of significant interest to Stockhouse investors:

  • High-grade cobalt (and silver) mineralization at flagship Castle Mine Project
  • Considerable underground infrastructure, including three shafts and an adit
  • Only Company in Cobalt Camp permitted for underground workings
  • Unparalleled leadership

President and CEO, Frank Basa has devoted much of his 28-year mining career to mining operations in the Cobalt Camp. Simply, no other mining executive in Canada today knows this geology better than Basa, who worked at CCW’s Castle Mine Project while the Mine was still in production (for previous operator, Agnico Eagle Mines).

However, as a Professional Engineer, Basa brings more to the table than just his knowledge of the geology of the Cobalt Camp. He has also pioneered proprietary clean/green technology, designed specifically to process this ore, dubbed Re-2OX.

Since Stockhouse published its feature article in mid-summer, Canada Cobalt Works has been busy – busy drilling. Here there is important news on two fronts.

The starting point is the high-grade silver/cobalt mineralization that the Company is uncovering at the Castle Mine site. From his earlier days working in this Mine, Basa knew that little attention was paid at the time to the cobalt mineralization, since (at previous prices) it was the high-grade silver that was the big revenue-generator.

One of the missions of Basa and Canada Cobalt Works is to re-explore this geology, but with now a much stronger emphasis on the cobalt mineralization. On November 2, 2018; CCW released drilling assays from the Castle Mine.

Highlights from the first three drill holes reported big numbers:

  • 2.28% cobalt, 261 g/t silver and 1.65% nickel over 7.00 meters (hole CA 18-001)
  • 1.87% cobalt, 4,763 g/t silver, 1.29% nickel and 1.19 g/t gold over 2.54 meters (hole CA 18-002)
  • 3.16% cobalt and 10,741 g/t silver over 0.60 meters (hole CA 18-003)

These results come from the first level of the Castle Mine, which was readied for drilling quickly and cost-effectively. With 11 levels of (previous) mining at Castle, the Company is literally just scratching the surface as it re-explores this large, high-grade mine site.

Click to enlarge

The second piece of big news from recent exploration on this property relates to something hinted at in drillhole CA 18-002: gold.

On December 14, 2018; Canada Cobalt Works reported a new discovery. In step-out drilling, 1.5 kilometers east-northeast of the Castle property (previously undrilled), CCW has “intersected an apparent syenite hosted gold system”. Two widely-spaced holes were drilled, with both encountering near-surface gold mineralization.

Doug Robinson, consulting geologist for Canada Cobalt, offered these insights:

“Drill holes CS-18-15, CS-18-16 and CS-18-16-W (wedge hole) east of the mine are a very important breakthrough and now have us seriously investigating an apparent gold system with appropriate sulphide and quartz veining in association with a major fault that may be the controlling fault for the zones we've encountered.” [emphasis mine]

The discovery of near-surface gold mineralization east of the Castle Mine doesn’t rule out the possibility of finding silver/cobalt mineralization in this new zone, as well, beneath this layer of gold mineralization.

Thanks to the Electric Vehicle Revolution and the rise of lithium-ion batteries, cobalt remains one of the hottest metals markets on the planet today. Meanwhile, precious metals markets – gold and silver – are well overdue for their next rally.

Canada Cobalt Works was already on the radar of mining investors due to the high-grade silver and cobalt mineralization hosted at the Castle Mine Project. Assay results from November 2nd attached an exclamation point to this high-grade potential.

Now, new gold mineralization identified to the east of the Castle Mine may be the proverbial layer of icing on the cake. The Company remains busy with its exploration efforts and investors should stay tuned for further updates here in the New Year.

FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.

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