Canada Silver Cobalt Works acquires prospective gold property near Kirkland Lake Gold’s Macassa Mine

Canada Silver Cobalt Works Inc. has entered into an option agreement to acquire the Eby-Otto Township property from geologist Doug Robinson and prospector James Reed. The property lies within the prolific Kirkland Lake district and is located within 5 kilometers (km) of the high-grade Macassa Gold Mine currently operated by Kirkland Lake Gold. Under the agreement, Canada Silver Cobalt Works said both claim holders have granted it the option to acquire, over a period of five years, 100% of the property in return for cash payments totaling $364,000 and the issuance of 800,000 common shares of the company as well as incurring a total of $2.4 million in exploration expenditures.  READ: Canada Silver Cobalt Works discovers more high-grade silver at its Castle East project in Ontario In addition, Reed and Robinson will retain a 3% royalty if the company completes the entire option. Canada Silver Cobalt Works will be the operator and will manage all exploration work throughout the term of the option. In a statement, the company said the acquisition highlights include: The property contains about 200-hectares with a strike length of over 2km. Numerous strongly altered and mineralized quartz veins outcropping at surface have been discovered. The mineralization and alteration are highly favorable in addition to being typical of other gold-bearing veins in the district. Preliminary channel sampling has been recently completed with the assays pending. Property comes highly recommended by Robinson, a long-time geologist who originally discovered Canada Silver Cobalt’s Robinson Zone, and Reed, an experienced prospector highly familiar with the area. The acquisition allows the company to expand its precious metals portfolio into the well-established Kirkland Lake Gold camp as well as the prolific Larder Lake-Cadillac Break system. Canada Silver Cobalt Works CEO Frank Basa noted that Robinson is a highly respected geologist with a proven record of precious metal discoveries over the past 50 years. He served as underground mine geologist for Agnico Eagle Mines in the Greater Silver-Cobalt Camp in the 1980s and more recently as a geological consultant for Canada Silver Cobalt Works’ Castle property.  “His work for us led to the first major discovery of the exceptionally high-grade silver veins at Castle East which produced the world’s highest pure silver resource and we named it the Robinson Zone in his honour,” said Basa. “The property we are acquiring from Doug Robinson and Jim Reed is the core mining claim package they have retained over the years representing the most prospective of the over 100 claim units they held since the 1990s near the high-grade Macassa Gold Mine. They have completed a significant amount of work at the property including an airborne drone-based geophysical survey along with substantial hand stripping and have identified several drill targets. We are very pleased that Doug will continue to be involved as a consultant to Canada Silver Cobalt Works and will assist in the next steps in continuing gold exploration at the acquired property.” Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham