2012-09-20 16:12:45 -
Vancouver, British Columbia CANADA, September 20, 2012 /FSC/ - Cadillac Mining Corporation (CQX - TSX Venture), ("Cadillac")is pleased to provide a progress report for its Goldstrike project situated about 35 miles northwest of St. George in southwestern Utah. Cadillac is targeting broad, open pit, Carlin-style, gold mineralization similar to many other gold deposits in the Great Basin of the western United States.
Cadillac has a 100% interest in the 4800-acre property, comprising patented claim leases and 208 contiguous federal claims, covering about 8 kilometers of prospective geology within the former Goldstrike Mining District. Historical modern production at Goldstrike is reported at 209,800 ounces of gold and 197,600 ounces of silver recovered from 12 pits.
Cadillac's President & CEO, Victor Erickson,
commented, "As a result of the difficult economics caused by falling gold prices and high royalties, prior operators Tenneco and USMX focused their exploration almost exclusively on the margins of known zones of gold mineralization and on near-surface targets, This constrained exploration to relatively shallow depths, leaving most of the prospective Tertiary strata on the Goldstrike property largely untested. Cadillac management is confident that the multi-million ounce potential of the Goldstrike project will in due course be realized as a result of the methodical approach the Company has taken in exploring the property."
The Goldstrike District, situated near the southeast limit of the Great Basin, is a stratiform, Carlin-style setting. Cadillac is currently targeting extensions to the oxide gold mineralization that was mined between 1988 and 1994 from 12 shallow deposits stretching over four miles of favorable geology. The reported average grade of the ore mined from the Tertiary-age lower Claron formation sandstone and underlying brecciated Paleozoic limestone was 1.1 g Au/tonne.
Cadillac's successful 12-hole Phase One program, tested a zone of mineralization located in close proximity to the Hamburg and Basin pits, intersecting the following mineralized intervals, (as initially released on June 29 and July 18, 2012). Silver assays for GS11-02 and 03 were received recently. See the recently updated drill and pit maps on the Company's website at cadillacmining.com/NR47_CA.php
Drill Hole Mineralized Intercept
Hole # Section AZ/Dip Total From To Interval Au Ag
degrees Depth (m) (m) (m) (g/t) (g/t)
GS11-01 660E 180/-70 164.6 No values -
GS11-02 660E 360/-72 201.2 24.4 97.5 62.4 1.13 6.27
Includes 24.4 68.6 44.2 1.56 9.50
Includes 45.7 61.0 15.3 2.51 14.33
GS11-03 630E 330/-67 201.2 24.4 106.7 82.3 1.25 8.02
Includes 24.4 74.7 50.3 1.58 10.65
Includes 33.5 53.3 19.8 2.88 21.2
and 100.6 106.6 6.1 3.00 9.75
GS12-04 690E 360/-67 132.4 27.1 56.1 29.0 0.43 4.01
GS12-05* 690E 360/-80 65.8 27.1 63.1 36.0 0.81 7.09
GS12-06* 690E 180/-80 55.5 Scattered values
GS12-07 730E 360/-67 147.6 70.7 100.9 30.2 1.56 3.80
GS12-08* 730E Vertical 102.1 52.1 82.9 30.8 2.05 4.31
Includes 52.1 64.3 10.2 4.48 8.77
GS12-09 770E 360/-67 147.0 88.4 131.1 42.7 0.61 3.93
GS12-10 770E 180/-70 128.8 54.0 64.3 10.3 1.49 3.00
GS12-11 815E 360/-67 150.0 83.8 138.7 54.9 0.86 4.14
Includes 99.7 131.1 31.4 1.23 5.91
GS12-12 815E 180/-70 144.6 88.4 138.7 47.3 0.64 4.87
Includes 91.4 112.8 21.4 1.02 9.34
*Drill hole terminated before reaching target depth because of drilling conditions.
The drilling program extended the strike of the gold mineralization in the Hamburg Extension to the east by 200 meters, and showed that the zone remains open to the north, west, and east. In addition, the core drilling identified some aspects of geological complexity either not documented or not previously recognized. Understanding these features will greatly assist the interpretation of past and future drilling results.
The next drill program will comprise approximately 3000 meters of core drilling to test several targets at modest depth near the margins of existing pits, and several historical drill intercepts worthy of follow-up. (See the drill target map at cadillacmining.com/NR47_CA.php
In addition, the Company believes that a mudstone cap-rock identified in core will respond to geophysical prospecting methods. If confirmed by a pilot survey over the known zone, this technology will provide a powerful and very cost effective exploration tool.
Cadillac management also believes that historical multi-ounce fault-related drill intercepts imply good potential for deep-seated, structurally controlled high-grade gold mineralization of the type originally found in the Carlin District, and subsequently discovered elsewhere in the Great Basin.
The Company has initiated discussions with several potential financing entities to fund the next drilling program.
About Cadillac Mining Corporation
Cadillac Mining Corporation is a junior exploration and development company based in Vancouver, Canada focused on large-scale precious and base metal projects in the Abitibi geological province in Canada, and the Great Basin in the western USA. The Company's long term objective is the discovery of a major deposit through carefully planned exploration strategies. Its business model provides shareholders access to a wealth of exploration experience, dedicated management, and the opportunity to experience discovery through a conservatively capitalized company. The Company has approximately 32 million shares outstanding.
On behalf of the Board of Directors
Victor Erickson, P.Eng.
President & CEO email@example.com
Steven Kubota 604-805-6684
Investor Relations firstname.lastname@example.org
THIS NEWS RELEASE WAS PREPARED BY MANAGEMENT WHICH TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. THE TSX-VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-VENTURE EXCHANGE) DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release contains "forward-looking information" within the meaning of the Canadian securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "budgets", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the recently completed reverse circulation drilling program which may be deemed to be forward-looking information in that it reflects a prediction of the mineralization that could be encountered if additional exploration and drilling is completed.
In connection with the forward-looking information contained in this news release, Cadillac has made numerous assumptions, regarding, among other things: the geological data and information has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. While Cadillac considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies including there is no certainity that additional exploration on the Goldstrike property would located additional gold mineralization. Additionally, there are known and unknown risk factors which could cause Cadillac's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: the possibility that future drilling on the Goldstrike project may not occur on a timely basis, or at all; that additional drilling may not intersect additional gold mineralization and uncertainty as to timely availability of permits and other governmental approvals.
All forward-looking information herein is qualified in its entirety by this cautionary statement, and Cadillac disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
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Source: Cadillac Mining Corporation (TSX-V: CQX) www.cadillacmining.com
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