Canada Silver Cobalt Works Inc (CVE:CCW) (OTCMKTS:CCWOF), which is focused on the Cobalt Camp in the Gowganda district of Ontario, has announced a key step forward in its battery metals production aims, namely striking a deal with consultant SGS Canada Inc to build a Re-2OX pilot plant.
Put simply, Canada Silver Cobalt Work's Re-2OX is a proprietary technology designed to efficiently extract cobalt and produce cobalt sulphate to specifications required by battery sector end-users.
READ: Canada Silver Cobalt Works announces new high-grade mineralized vein at Robinson Zone on its Castle Silver Mine property
Today's announced agreement means SGS will carry out optimization tests and design and build the Stage 1 pilot plant at Lakefield, Ontario.
Feed material will come from the underground at the group's Castle mine, the high-grade silver discovery called the Robinson Zone, the Beaver and Castle tailings, recycled batteries, and from newly acquired properties,
"Management sees the Re-2OX pilot plant as a long-term strategic advantage that will facilitate the production of battery metals for the EV market for many years," the company said in a statement.
"....we are taking all the necessary steps to become a producer of both silver and battery metals for the EV market, while fully developing all of our assets. Feed material will be North American, with production specifically designed for the North American EV market," it added.
Last year, the company acquired the Temiskaming Testing Labs (TTL) - an ISO certified laboratory and processing facility in the town of Cobalt, giving it multiple potential revenue streams such as bullion pouring and commercial assaying and providing a space for the Re-2OX technology.
The company has reported Friday it had hired ONSite Labs as an independent contract operator of the TTL facility, which is expected to be fully operational and open for business by this summer.
Frank Basa, Canada Silver Cobalt Works' CEO said: "Back in the day, in the Cobalt Camp, the approach was simple; they followed the high-grade silver veins and discarded all the other material which was in fact battery metals that graded over 10 percent cobalt equivalent in base metals.
"The economics of harvesting both the base metals and silver, then adding value by processing it into premium EV battery metals will provide the company with two solid income streams and we are excited for the future as the high-grade and technology Leader in Canada's Silver Cobalt heartland."
Cobalt is a strategic metal due to its wide range of applications. As well as being used in electric vehicle (EV) batteries, it is used in medical devices and defence and military applications.
EV industry analysts have noted that once the price for a new electric vehicle equals a new gas-powered vehicle, adoption will go fully mainstream and demand will go vertical.
In May last year, Canada Silver Cobalt Works released the first-ever resource in the Gowganda Camp and greater Cobalt Camp.
A total of 7.56 million ounces of silver was put in the Inferred category, comprising very high-grade silver (8,582 grams per tonne (g/t)) from two sections of the Robinson Zone beginning at a vertical depth of around 400 meters.
The discovery remains open in all directions.
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