Canada Cobalt Works (TSXV:CCW): Atypical Junior Bucks Venture Trend

Oct 20, 2019

Canada Cobalt Works Inc. (TSXV:CCW ; OTC: CCWOF)
October 17, 2019

The Venture has been hit hard since the middle of September, but there’s one company whose stock price has actually jumped more than 30% during that time. Last year it was featured on “The National” on CBC and the stock actually quadrupled in value in less than three months while the Venture was also slumping.

What’s so different about this company that it would be able to attract such positive media attention and outperform the market so significantly over lengthy periods? And why are its prospects now considered to be better than ever?

Unique Company Grows On A High-Grade Focus

Canada Cobalt (TSXV: CCW; OTC, CCWOF) is the company we’re referring to. Apart from having a technological solution (Re-2OX Process) to a longstanding environmental issue of arsenic-rich ores in a broad district of Northern Ontario known as the birthplace of Canadian hard rock mining, Canada Cobalt has separated itself from the rest of the junior resource sector due to its multiple near-term revenue streams ranging from high-grade silver recovery from its Castle mine and property to “urban mining” of high-grade gold and other metals from printed circuit boards. In several ways, CCW is racing down the same path that Agnico Eagle used many years ago in the Northern Ontario Silver-Cobalt Camp as a springboard to become the corporate giant it is today in the mining sector. In fact, CCW’s Castle mine was a cornerstone of Agnico Eagle’s success in the district throughout the 1980’s.

Grade is King. In Canada Cobalt’s world, drill results can be in the tens or even hundreds of ounces per ton, cobalt assays exceed the global average by orders of magnitude, and planned “urban mining” of printed circuit boards could yield gold in the ounces (not grams) per tonne.

Transformational Deal

Canada Cobalt is one of the most exciting opportunities we see in the market right now because it has so many different levers it can pull to generate interest and build shareholder value, especially after the October 10 announcement of a binding LOI to acquire the only facility in Canada’s silver-cobalt heartland that combines bullion pouring, bulk sampling, commercial assaying and e-waste processing. It’s located in the historic town of Cobalt, immediately next to a rail line and just a 1-hour drive from the Castle mine in Gowganda.

CCW Cuts Game-Changing Deal

The binding LOI to acquire privately-held PolyMet Resources Inc., on very favorable terms, is truly a “game changer” for CCW. The deal creates a robust cash flow model and solidifies the company as the vertically integrated leader of a mining and exploration district that’s making a powerful comeback as bull markets ramp up in silver and gold, while the district’s potential as an ethical source of cobalt has drawn a lot of attention as the electric vehicle revolution intensifies.

CCW Scores Big On Castle Mine Waste Material

CCW Highlights:

There are multiple moving parts to this intriguing story, so here’s a quick bullet point summary of what’s unfolding now:

Canada Cobalt has just poured its first silver bars in a proof-of-concept test ahead of a significant ramp-up that will officially begin with the pouring of a 1,000-ounce silver dore bar planned for later this month;
Owning and advancing a high-grade past producing underground mine such as Castle, with historic tailings, puts Canada Cobalt in a unique position at this early stage of the silver bull market – tailings are being targeted for significant recovery of high-grade silver;

The PolyMet facility, a shrewd deal completed for only $650,000 (half cash and half stock), comes with 4 profit centers: 1) Bullion pouring, which CCW is starting already; 2) Bulk sampling; 3) Commercial assaying; and 4) E-waste processing;
The PolyMet facility becomes the home for Canada Cobalt’s proprietary and environmentally friendly Re-2OX Process which has allowed CCW to become the first company during the battery arms race to produce a high-purity cobalt sulphate product from its own mineralized material;
PolyMet recently produced a ton of shredded printed computer circuit boards in a trial run that graded just over 7 oz per ton Gold, 2 oz per ton Palladium, 30 oz per ton Silver and 11% Copper, verified by a smelter in Chicago. That’s a phenomenal value of $15,000 per tonne!
“Urban mining” has the potential to become a major new business for the PolyMet operation, under the umbrella of CCW and where it will also host its Re-2OX Process – check out ETI and MWX which have a combined market cap of around $130 million.

Phase 2 underground drilling has commenced at Castle to build on stellar 2018 results such as 2 ounces per ton silver, 0.67% cobalt and 3.8 g/t gold over half a metre within a broader 5.51-m core length averaging 2,620 g/t silver (76.4 ounces per ton) in CA-18-02;

The best place to find a new mine is near an old mine, and Canada Cobalt has exceptional discovery potential immediately east of the Castle mine (and two other past producers) where the company has drilled into gold and very high-grade silver.

Canada Cobalt has wisely protected its share structure in recent years, unlike its neighbors in the Northern Ontario Silver-Cobalt Camp, and has just under 84 million shares outstanding with no significant warrant overhang. Management and personnel have extensive experience in the region, going back decades, and have smartly executed on a broad vision for CCW that was laid out well before a major rush into the district by other companies beginning in 2016.

Significantly, Canada Cobalt has all the ingredients and potential to continue to clearly distinguish itself as a very different type of company in the junior resource sector.

https://www.canadacobaltworks.com/