Canada Cobalt History

Cobalt History on CCW Properties

In addition to the Castle Silver Mine profitably operated by Agnico Eagle Mining up until the late 1980’s, the Company also has 100% ownership of the Beaver and Violet cobalt silver mine properties located near the historic Castle silver cobalt mine property.  Roughly 300,000 pounds of cobalt was mined from Castle over the years, see August 3rd 2015 Technical Report with the Beaver mine property having historical documented cobalt production of another 140,000 pounds.  Although cobalt has been in the news as the price continues to head up, work related to cobalt on these properties dates to 2011 when drill hole CA11-09 returned 1.44% cobalt over 0.12 metres (0.39 feet) at Castle plus CA11-08 returned 6,476 grams (188.8 ounces) of silver per tonne over 3.09 metres (10.138 feet) including 0.91% cobalt over 0.45 metres (1.48 feet) also at Castle.

In February 2013, metallurgical tests on samples from the Beaver mine property were released. The Company’s geological consultant hand cobbed 400 kilograms of cobalt-nickel sulphide material from the historic waste pile at Beaver. A 20-kilogram sample was used in a test program, with an average calculated assay of 7.98% cobalt, 3.98% nickel and 1,246 g/t silver. Combined gravity-flotation recoveries from the limited test program yielded 64.2% for cobalt, 61.2% for nickel and 92.0% for silver.

Results from bench-scale metallurgical flotation and gravity test work press released January 31, 2017 showed silver and cobalt recoveries of 98.5% and 70.5% respectively with an extremely high concentrate grade of 11,876 grams per tonne silver and 10.5% cobalt produced using a simple flotation process. The mineralized-material surface rock sample was a composite collected from the waste pile assaying 2,064 grams per tonne silver and 5.62% cobalt at the Beaver mine property. Read the entire press release here Castle metallurgy results news release revised January 31 2017

In June 2017 the company announced that chip sampling from the back of a quartz-carbonate vein on the first level adit at the Castle mine property site confirmed the presence of high-grade cobalt. Highlights of the first five chip sample results were all strongly mineralized as follows: 1.8% cobalt, 8.6% nickel and 25.2 g/t silver (CSR-17-S03) plus 1.6% cobalt, 7.6% nickel and 32 g/t silver (CSR-17-S04) and 0.81% cobalt, 5.9% nickel and 4.1 g/t silver (CSR-17-S01)

Then in July 2017 in a demonstration of Canada Cobalt’s underground advantage, an 82‐kilogram sample of vein material from the first level of the Castle mine property at Gowganda was crushed to ‐10 mesh, blended and assayed, returning 1.48% cobalt, 5.7 g/t gold and 46.3 g/t silver. On July 19th, it was announced that SGS Lakefield had produced a 14.8% cobalt concentrate from recently sampled material from the first level of the Castle mine property.

On November 13, 2017 the results from an exploratory surface drill program 200 meters from the adit at the Castle mine property were released. Mineralization was intersected in every hole highlighted by 1.55% cobalt, 0.65% nickel, 0.61 g/t Au and 8.8 g/t Ag over 0.65 meters at a very shallow depth (3.85 meters to 4.50 meters) in hole CA-17-16.  It has been asserted and again evidenced that historical operators overlooked the potential for cobalt, gold and base metals at the historic Castle mine property preferring only to focus on the extraction of high-grade silver.

On December 1, 2017 it was announced that ongoing underground sampling had returned high-grade cobalt from additional areas on the first level of the Castle mine adit with highlights including, 3.1% cobalt in sample CSR-UG-T-2, 1.04% cobalt in sample CSR-UG-T-3, and 2.3% cobalt in sample CSR-17-10.

These bulk samples were obtained by removing muck rock from the floor of the drift and chipping out vein material over 2 lengths of 10 metres with each filling a 23-litre container with approximately 20 kg of material. A single composite sample was taken by randomly selecting approximately 2 kilograms.

On December 8, 2017 results from the Beaver mine property were released also showing high-grade cobalt from three composite samples collected from select hand cobbed material at surface. The averages came in at 4.68% cobalt, 46.9 g/t silver and 3.09% nickel from the 38.7 kg samples combined weight.

February 27, 2018 it was announced that high-grade cobalt values were returned from a continuing mini-bulk sample at the Castle mine. The first sample, weighing 13.0 kg, assayed 2.47% cobalt, 23.4 g/t silver, 0.68% nickel and 1.83 g/t gold. The second sample, weighing 14.0 kg, assayed 0.91% cobalt and 460 g/t silver.

The most recent cobalt news on March 16, 2018, from a selected bulk sample from the floor of the first level of the mine, crushed, blended and assayed by SGS Lakefield, returned 2.46% cobalt, 1.0% nickel and 6,173 g/t silver (198.5 ounces per tonne). Native silver was not included in that pulp assay. A metallic screen fire assay was performed on the native silver, producing a head grade of 818,254 g/t (26,307 ounces per tonne).

Next steps include continued dewatering underground and blasting in prep for rehab work underground that could result in cobalt mineralized rock from behind the stopes. Other plans include trenching at the Beaver mine property and at Castle to follow up on an array of new near-surface targets identified by the 2017 drill program adjacent to the Castle mine adit.