Canada Silver Cobalt Works is earmarking $1.2 million raised in flow-through shares to chase more silver at a former mine property in the Gowganda area.
In the coming weeks, the British Columbia junior miner is ramping up a second round of drilling at Castle East on its 78-square-kilometre property in looking to bring the former Castle Mine site back into production.
The company has seen recent success in expanding a high-grade silver discovery - the Robinson Zone - and aims to drill off other high-priority targets this year in what they're calling a "pregnant system" with previously undiscovered high-grade veins of silver, cobalt, gold and nickel.
The Castle Mine operated sporadically between 1917 and 1989, producing a total of 292,686,672 grams of silver and 376,053 pounds of cobalt. The last company in was Agnico Eagle with production ore grades averaging 26 ounces per ton of silver.
The property is 30 kilometres south of Alamos Gold’s Young-Davidson mine and within 100 kilometres of Timmins.
Last month, the company released a first-time inferred estimate of 7.6 million ounces of silver with drill results as high as 70,380 grams per tonne of silver.
Plans for 2020 include plenty of follow-up drilling to grow the resource estimate and obtaining permits to dig out a ramp to establish underground exploration platforms.
"We have a very large area that has never been systematically drill tested, so the scale potential is very significant," said Matt Halliday, exploration vice-president, in a news release. "We know we have the grade with 7.6 million inferred ounces at 250 ounces per ton in a very concentrated area, ideal for accessing through a ramp."