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Canada Silver Cobalt Works looking to supply emerging green energy markets with its strategic position in famous cobalt camp

Published: 07:00 24 Sep 2020 EDT

Canada Silver Cobalt Works Inc. -
Frank Basa has been CEO of Canada Silver Cobalt Works since 2015

Canada Silver Cobalt Works Inc (CVE:CCW) (OTCMKTS:CCWOF) is focused on the cobalt camp in the Gowganda district of Ontario - one of the few places in the world where silver and cobalt can be mined together as primary metals.

Cobalt is gaining traction as a battery metal due to the rapidly growing electric vehicle (EV) market. Prices are rising and supply is tight.

The group's flagship asset is the permitted underground Castle mine and the surrounding 78 square kilometer Castle property. It wants to bring the Castle and Beaver mines back on stream. Previously, they generated 9.5 million ounces silver and 300,000 pounds of cobalt and 7.1 million ounces silver and 139,000 pounds cobalt, respectively.

Earlier this year, the firm uncovered a significant high-grade grassroots silver discovery at the Castle mine called the Robinson zone, where surface drilling found up to 70,380 grams per ton (g/t) silver.

The company is also the owner of its proprietary Re-2OX technology, which can produce cobalt sulphate to specifications required by battery end-users.

Proactive recently caught up with Canada Silver Cobalt Works CEO Frank Basa, who outlined some of the firm's key points and its current activity.

PROACTIVE: Please can you give a brief description of how the company was formed?

FB: The properties currently in Canada Silver Cobalt were originally held by Gold Bullion Development Corp - now Granada Gold Mines (CVE:GGM)). The reality was that these properties were not being given any weight in the valuation of Granada so when the opportunity came, the properties were spun out into a shell company called Takara Resources. 

Takara was renamed Castle Silver Resources then renamed to the current Canada Silver Cobalt Works. The existing shareholders of Granada gold were compensated with a dividend distribution over a four year period which worked extremely well for those shareholders as the share price of Canada Silver Cobalt moved up with the noteworthy drill results in both cobalt and silver but also other metals like gold.  It is extremely rare for a junior explorer to pay a dividend, but we did that as promised.

PROACTIVE: What do you consider to be your greatest/main achievements to date?

FB:  Aside from the dividend achievement already noted, we have the Robinson Zone discovery, which is an excellent target for high-grade silver, being one of the first major discoveries in the camp since production ended in the 1980s.

The achievement of hitting veins with the widths and grades that were economic in the past such as some of our 50,000-70,000 grams per ton (g/t) silver samples was an astounding accomplishment, but the fact that we are using the historical knowledge base from the camp through contracting consultants present when Agnico was a major player in the camp with new technology and techniques has allowed us to quickly produce a 43-101 compliant resource. I believe this is the first-ever 43-101 compliant resource in the camp.

Secondly, we have the Re2Ox process that we can use to remove arsenic from cobalt minerals and produce a high-quality cobalt sulphate as we did a few years ago according to the specs given to us by metal traders based in Asia. 

This will make us a leader in that circle and give us a gateway to being a green producer for emerging green energy markets. This is truly a critical component to becoming a leader in the camp and globally.

PROACTIVE: What are the likely catalysts for the stock over the next 12 months or so?

FB: We are currently drilling 50,000 meters at the Robinson zone and we expect to expand our current resource and upgrade the category of some of our resources.

We will be implementing more technology into the drill campaign to better utilize our collected data and produce new mineralization vectors on the Castle project.

You will see us engaging with key stakeholders to build a ramp, and we will be disseminating that knowledge to the goal of driving a ramp within the next 24 months. The company also just raised over 6 million dollars so is well capitalized to execute these plans.

Contact the author at giles@proactiveinvestors.com

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