Canada Silver Cobalt Works Inc said it has entered into an option agreement dated August 15, 2021, to acquire the 610 hectares, known as the Tinney property from a group of highly renowned prospectors.
The acquired property lies within the Abitibi Greenstone Belt in the prolific Kirkland Lake district and is located approximately 7 kilometres (km) south-west of the high-grade Macassa Gold Mine currently operated by Kirkland Lake Gold.
In addition, the 610 hectares included in the acquisition are adjacent to the 200 hectares recently optioned on August 3, 2021, from geologist Doug Robinson and partners. This increases the total area of the land package four-fold to a grand total of 810 hectares.
The company said the acquisition provides further expansion of its precious metals portfolio into the well-established Kirkland Lake Gold camp located on the prolific Larder Lake-Cadillac Break.
READ: Canada Silver Cobalt Works hits high-grade intercepts at the Big Silver zone on its Castle East property
In a statement, Canada Silver Cobalt Works president, Matt Halliday said: “These new gold properties have our geologists very excited about the 2022 field season. There are multiple geological features that are of extreme interest including three major fault structures: the Larder Lake Cadillac Deformation Zone (also referred to as Break or Fault Zone) 1 km to the north, the Amikougami Creek Fault 5km to the east, and over 2km of the Eby-Otto Fault trending north-easterly through the property. The property is permit ready, we just need to put in the work.”
The claim holders have granted the option to Canada Silver Cobalt Works to acquire, over a period of 5 years, 100% of the property in return for cash payments totalling $182,000, the issuance of 400,000 common shares of Canada Silver Cobalt Works and incurring a total of $1.2 million in exploration expenditures on the property. All shares issued are subject to a four-month plus a day hold period in accordance with applicable securities laws.
In addition, the claim holders will retain a 3% royalty if Canada Silver Cobalt Works completes the entire option. Canada Silver Cobalt Works will be the operator and will manage all exploration work throughout the term of the option.
The company said select claims have valid exploration permits that will allow a combination of mechanized drilling and/or surface geophysics and a well-organized exploration plan is currently being developed for the 2022 field season which may include geological mapping, the stripping of outcrops, and channel sampling. Results of this field season will dictate the drill program to follow on the property, it added.
Canada Silver Cobalt Works recently discovered a major high-grade silver vein system at Castle East located 1.5 km from its 100%-owned, past-producing Castle Mine near Gowganda in the prolific and world-class silver-cobalt mining district of Northern Ontario.
This discovery has the highest silver resource grade in the world, with recent drill intercepts of up to 89,853 grams/tonne silver. A drill program is underway to expand the size of the deposit with an update to the resource estimate scheduled for Q1 2022.
Contact the author at jon.hopkins@proactiveinvestors.com