Canada Silver Cobalt Works Inc. (TSX-V:CCW) said it has struck a deal to acquire, for cash and shares, the Allsopp property, expanding its prospective Eby-Otto gold property in the prolific Kirkland Lake district of Ontario.
It means the firm expands its footprint at Eby-Otto, bought in 2021, to 1,000 hectares (Ha) from 810 Ha previously.
Notably, the acquisition includes a historic shaft and exposed veins near-surface and sits just five kilometres (km) southwest of Agnico Eagle's high-grade Macassa gold mine - an operation which started almost 100 years ago, churning out over 5 million ounces of gold, which still has one of the highest reserve grades in the world.
"We are geared up to accelerate this project in 2022," said Matthew Halliday, president of Canada Silver Cobalt Works in a statement. "We have a team with proven success in the Kirkland Lake camp and we are ready to take action and bring real value to this property. We will be completing a drone survey to collect some important geological information very soon, and this will help us make informed decisions as we begin work on these properties. We want boots on the ground and the drill bit turning as soon as possible."
READ: Canada Silver Cobalt Works reveals 2022 plans at its portfolio of mineral properties in Ontario and Quebec
Under the deal, Arnold Allsopp has granted the firm the option to buy, over four years, 100% of the property in return for cash payments totaling C$100,000, issuing 400,000 shares, and incurring C$340,000 in exploration expenditures.
Allsopp will retain a 3% royalty if Canada Silver Cobalt Works completes the entire option and the company will be the operator and will manage all exploration.
Canada Silver Cobalt Works said its geologists were very excited about the upcoming field season.
"The 2022 exploration plan for the newly consolidated Eby-Otto property includes drone geophysics, stripping of outcrops, channel sampling, and geological mapping. Results of this field season help refine and add to the planned drill program," it said.
Canada Silver Cobalt Works describes itself as an exploration, development, technology, and environment leader in the prolific Northern Ontario Silver-Cobalt District. Its flagship silver-cobalt Castle mine and 78 square km Castle Property feature strong exploration upside for silver, cobalt, nickel, gold, and copper.
Contact the writer at giles@proactiveinvestors.com