Canada Silver Cobalt Works Inc (CVE:CCW) (OTCMKTS:CCWOF) (FRA:4T9B) has completed geophysical airborne surveys on five properties in Quebec, with a drill program scheduled on the B2 property during the second quarter.
The company, which has now secured 689 claims covering 38,129.4 hectares of prosperous ground, said it has budgeted $2.2 million for exploration for these properties this year.
Canada Silver Cobalt said the airborne surveys were aimed at measuring the gravity and magnetic field. The company is seeking to identify the magmatic reservoir potentially hosting significant amounts of nickel- and copper-sulphide masses at the base of the magmatic chamber.
READ: Canada Silver Cobalt Works names Ryan Webster as its new finance chief
The priority target areas of these first airborne surveys are the following properties:
- Graal – Nourricier Lac Suzanne
- Lowney, Lac Edouard South-East
- Forgues East Manic Crater
- Fuchsia-Massif du Nord
- B15 Bouguer anomaly
The company said the final reports are pending, and details will be disclosed once received and evaluated, and the information will be used to prepare subsequent drill programs.
Canada Silver Cobalt said it has started preliminary geological sampling on the B2 and Grand Portage properties. The B2 property option has shown high-grade copper in the discovery showing and a maiden drill program is expected to start by the 2Q to test the mineralized structure identified. Mineralization appears to be associated with a structural shear.
Observations from the channel sampling indicated the property deserved additional work and a ground magnetic orientation survey was completed.
The company said a total of 41 channel samples with three blanks and standards were sent to the SGS Laboratory in Québec. The highest grade came from the gossan sample with 17.53% copper, 0.245 % nickel, and 0.026 % cobalt, while channel sample results range from 25 to 2,887 parts per million (ppm) copper, 11 to 3,452 ppm nickel, and 11 to 385ppm cobalt.
At Grand Portage, the company said geological sampling with a portable drill with 30-centimetres depth capability using (AQ) drill core has confirmed the presence of mineralization of interest at the surface. The mineralization associated with mafic-ultramafic blobs deserves additional work.
Five core samples with 1 standard were sent to the AGAT laboratory in Ontario. The highest grade came from sample #10404 with 1.63% nickel, 0.61% copper and 0.068% cobalt. Samples range from 0.02 to 0.61% copper, from 0.05 to 1.63 % nickel, from 0.011 to 0.06% cobalt, from 1 to 7 grams per ton (g/t) silver, from 0.001 to 0.04 g/t gold and from trace palladium 0.002 to 0.007 g/t.
"It is Canada Silver Cobalt's intention to transfer its non-silver assets, in exchange for shares, to another public company to be identified by the company, and to do a proportional distribution of shares by way of dividends to Canada Silver Cobalt's shareholders," said CEO Frank Basa in a statement.
"This transaction will enhance shareholder value by offering exposure to two strong developing market forces with increased investor focus to the potential that the company sees with a pure precious metal play with the Robinson Zone from the former high-grade Castle Silver Mine area in Gowganda, Ontario and with the EV properties that have been recently acquired in Quebec and Ontario."
Contact the author: patrick@proactiveinvestors.com
Follow him on Twitter @PatrickMGraham