Stockhouse report on Canada Cobalt: Bonanza Grades at Ontario Silver-Cobalt Project

Feb 25, 2019

Stockhouse report on Canada Cobalt: Bonanza Grades at Ontario Silver-Cobalt Project

Grade is king.

For many mining investors, this is a Golden Rule in their investing. Why? Two reasons. First, with difficult conditions in the mining sector, high grades provide downside protection for project development – thus mitigating risk.

The other reason why experienced mining investors tend to focus on grades is that as mining exploration becomes increasingly exhaustive, high grade deposits are becoming increasingly scarce. Ultra high-grade mineralization, known within the industry as “bonanza grades”, are now rarely reported.

For this reason, the drilling results for Canada Cobalt Works Inc. (TSX: V.CCW, OTCQB: CCWOF, Forum) at its Castle Mine Silver-Cobalt Project are big news. Bonanza grades. Just look at the numbers for these silver and cobalt intercepts.

3,213 g/t Ag over 1 meter, including 9,816 g/t Ag over 0.33 meters
2,620 g/t Ag over 5.51 meters, including 13,208 g/t Ag, 0.67% cobalt and 3.77 g/t Au over 0.33 meters, plus 1.87% cobalt over 2.54 meters (hole CA-18-02)
Of 47 “shallow underground test holes” that were drilled, roughly ¼ returned assay values of 1.05% to 3.7% cobalt, with an average width of 1.77 meters

On February 19, 2018; Canada Cobalt released its first underground drilling results, in Phase 1 drilling at the historic Castle mine, located near Gowganda, Ontario. Canadian mining investors will recognize this region as Canada’s “Cobalt Camp”. However, even more experienced investors will know that this region was primarily a high-grade silver producing district, with abnormally large cobalt credits.

Stockhouse investors are already familiar with this Company and the exciting potential of its Castle Mine Silver-Cobalt Project. Stockhouse originally introduced Canada Cobalt to our audience in a full-length feature article from August 9, 2018.

What a difference a year makes! A year ago, the cobalt market was red hot, with a 52-week high of USD$43.32 per pound. Since then, cobalt prices have cooled off significantly – temporarily.

image: https://stockhouse.com/getattachment/53bcfb28-3dab-40ba-84d1-48195c7d3c8d/CanadaCobaltFA2_cobalt1yr.png

[chart courtesy of InfoMine.com]

As a scarce metal that is almost exclusively found as a byproduct of other metals, cobalt is “supply inelastic”, meaning no matter how high the price goes, this will only generate a muted response in terms of mine production. It’s widely seen as the key input bottleneck in the production of the lithium-ion batteries that are powering the Electric Vehicle Revolution.

What does it mean for mining investors with the price of cobalt temporarily back down to USD$14.06 per pound? It means that cobalt mining stocks are currently on sale. That’s one reason for mining investors to be interested in Canada Cobalt Works, and its exciting first-pass underground drill results.

An even bigger reason to be excited by the Company’s bonanza-grade results is the silver. The silver market has been dormant (price-wise) since its epic, 10+ year bull market run came to a halt in 2011. But that doesn’t mean that it’s off the radar of experienced mining investors.

A recent Stockhouse article pointed to the outstanding long-term fundamentals for the silver market, arguably a metal with even more explosive upside-potential than cobalt. Stockhouse’s Community of astute mining investors are aware of these fundamentals.

image: https://stockhouse.com/media/marketing/ceo_event/CanadaCobalt_BuzzJan24_220.jpg

Also in that article were results from a previous Stockhouse Investor Pulse Poll. Putting aside cobalt and vanadium (another high-flying metal), Stockhouse investors ranked silver only behind gold in terms of where they see the greatest potential for 2019.

As mining investors seek to position themselves for the longer-term opportunity in the silver market, Canada Cobalt’s combination of bonanza silver grades + high-grade cobalt will certainly turn a lot of heads. Jacques Monette, a Director of Canada Cobalt and a true mining veteran put these outstanding numbers into context.

“These results from our first-ever underground drilling support the interpretation that much was left behind at the Castle mine, not just cobalt but very high-grade silver. 2018 was a pivotal year in the revitalization of the Castle mine, and we look forward to achieving key new milestones in the coming months. At the height of winter, we have a very active site and another drill program kicking off this week southeast of the mine as we build on a potential high-grade gold discovery at Castle East.” [emphasis mine]

Quiet markets (at present) for silver and cobalt. Very active exploration by CCW at its flagship Project. For mining investors looking for high-quality mining prospects at a bargain price, this is a very attractive combination. More recently, precious metals markets have been showing increasing signs of life.

In addition to new drilling about to commence to the southeast, a Phase 2 drilling program to build on these bonanza-grade intercepts is already being mapped out by management. Investors wanting more information on how CCW sees itself fitting into the cobalt supply chain may be interested in a recent Stockhouse interview with the President and CEO of Canada Cobalt, Frank Basa.

Basa has years of previous mining experience not merely within this district, but in actually working in the Castle Mine while it was in production. He knows this geology like the back of his hand. CEO Basa is also an accomplished metallurgist and is working on innovative/efficient extraction technology to improve Project economics.

For mining investors interested in silver or interested in cobalt, Canada Cobalt Works is a Company that is hard to overlook.

Read more at https://stockhouse.com/news/newswire/2019/02/25/bonanza-grades-ontario-silver-cobalt-project#KwqRarf7yxJQt12o.99

Please click on link to view report:
https://stockhouse.com/news/newswire/2019/02/25/bonanza-grades-ontario-silver-cobalt-project

Also, here is a link to Canada Cobalt’s recent news releases announcing the high silver and cobalt grades and the recent discovery of a new pyrite-rich Archean gold system:

https://www.canadacobaltworks.com/2019-news-releases/

Best regards,

Wayne

Wayne Cheveldayoff

Corporate Communications

Canada Cobalt Works Inc. (TSXV: CCW; OTC: CCWOF; Frankfurt: 4T9B)

Granada Gold Mine Inc. (TSXV: GGM; OTC: GBBFF; Frankfurt: B6D)

[email protected]

mobile 416-710-2410