Jun. 28, 2011 (Filing Services Canada) -- Cadillac Mining Corporation (CQX - TSX Venture), wishes to update shareholders as to progress since April on its Break Project located on the Cadillac-Larder Lake Break in the Abitibi geological province, west of Rouyn-Noranda, Quebec.
Cadillac - Visible Gold Option
Visible Gold Mines Inc. (TSX-V:VGD) has informed the Company that it has now completed 4334 meters of a planned 8900-meter drill program on a series of targets within Cadillac's Break Project where Visible Gold has an option to earn 60% in several of the properties in the Project.
In early April, Visible Gold commenced a program of four deep holes on the Kanasuta claims in Dasserat Township, approximately 800 meters south of Vantex Resources Moriss Zone discovery on its Galloway project, about 30 kilometers west of Rouyn-Noranda. To date, three holes drilled to 756, 648, and 1215 meters respectively have been completed and logged, and 513 samples have been submitted for assay.
Visible Gold has also reported the completion of the initial two of nine planned holes at the western end of Cadillac's Kekeko claim group (dubbed "Lucky Break" by Visible Gold) in Beauchastel Township, and the commencement of a third hole. The initial two holes, aggregating 1098 meters, were collared on untested gold showings approximately five kilometers south to southwest of Richmont Mines Wasamac project.
As announced on December 7, 2010, Visible Gold may earn a 60% undivided interest in the 217-claim, 7423-hectate property over a period of four years by completing exploration expenditures of $4.2 million, issuing an aggregate 500,000 Visible Gold common shares to Cadillac and paying a total of $100,000 cash. The initial payment of $25,000 cash and 100,000 common shares has been received by Cadillac.
Wasa Claims
Cadillac's 100%-owned Wasa property comprises 164 hectares in seven claims contiguous with the north boundary of Richmont Mines Wasamac project, where Richmont recently announced a NI43-101 resource of approximately 1.4 million oz gold, as well as plans for 35,000 meters of drilling, and completion of a scoping study in 2011. As the Wasamac shear zone that hosts Richmont's resource dips northerly, it can reasonably be expected to extend past the common boundary onto the Wasa property. Consequently, the potential for gold mineralization on the Wasa claims at depth appears to be reasonably strong.
Wasamac mineralization is confined to a broad persistent shear zone striking about 080 degrees with a north dip averaging 55 degrees. Gold-bearing zones occupy broad tongue-like shoots raking gently easterly. They consist of pyritic quartz-carbonate veins, stringers and silica replacement, all within a chloritic envelope (see the accompanying Longitudinal Section). The Wasamac shear and related mineralization is known to extend eastward in a semi-continuous fashion for more than 4000 meters.
The two most westerly zones, identified as 'Main Zone' and 'Zone #1', from which some 252,900 oz of gold were mined between 1965 and 1971, are of particular interest to Cadillac due to their proximity to the Wasa property. The Main Zone was developed by an inclined shaft to about 300 meters (1000-ft level), while diamond drilling has since traced it to about 600 meters vertically. These mineralized shoots range up to 68 and 20 meters in width over strike lengths of 300 and 150 meters respectively. Resource blocks, which total 5,093,180 tonnes at 2.51 g Au/tonne, appear to be continuous and predictable along both strike and dip. Notably, more than half of the recently published resource is contained in the Main and #1 Zones.
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Recent drill results released by Richmont for DDH's 56, 61 & 66A) confirm that the Main Zone extends to within 350 meters of Cadillac's south boundary. Mineralized zones reach 68 meters in width at this location. (See the accompanying 66A Section). It is important to note that all three drill holes appear to coincide with the expected intersection of the Wasamac shear and the vertically dipping Horne Creek Fault. At this location, nothing is known about the relationship between these two structures, the geometry of their intersection, or how mineralization may have been influenced at their confluence. Most importantly, it has not been established that the Wasamac shear will extend northward past the Horne Creek Fault, and onto the Cadillac claims. Accordingly, the down-dip trace of this structure is shown as a dashed line and should be considered speculative.
However, Cadillac believes the balance of probabilities supports the interpretation shown in cross-section for the following reasons:
i) gold mineralization along the Cadillac Break occurred late in the evolution of geological events and generally post-dates all but the latest fault movement;
ii) the Horne Creek and related faults have moved very little since earliest Proterozoic time, as determined by exhaustive studies of these structures at the Horne Mine; and
iii) drilling by Minnova in 1986 confirmed that the previously mined Donalda gold-quartz vein near Rouyn-Noranda continues down-dip past the Horne Creek Fault with little or no disruption, contrary to earlier theories.
Accordingly, Cadillac anticipates that the Wasamac mineralizing system is likely to extend across the fault and continue down-dip through the common boundary at depth. The Company awaits results of ongoing drilling by Richmont Mines before embarking on exploration on its side of the boundary.
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Cadillac Break Project Summary & History
Cadillac Mining's Break project comprising 7,755 hectares is 100%-owned by the Company. The claims cover more than 20 km of the Cadillac Break, and lie between the Noranda camp which has produced 18 million oz gold, and the 11-million oz former Kerr Addison Mine at Virginiatown, Ontario. Cadillac's claims are situated in and peripheral to the Noranda Basin where gold was produced primarily from VMS deposits, which include the world-class Horne Mine. Readers are reminded that the Cadillac-Larder Lake Break, which hosts more than 100 mines and significant gold prospects, extends from Kirkland Lake in Ontario to well east of Val d' Or, Quebec. This exceptional structure, productive over some 200 km, has over the past nine decades yielded and hosts an aggregate of more than 80 million oz gold.
The properties comprising the Break Project were staked in 2002 by the founders of Cadillac Mining Corporation. Exploration to date has included a project-wide airborne geophysical survey, extensive lithogeochemical sampling, and diamond drilling. Prior to Cadillac's involvement, the area it holds had been largely untested because of difficulties in penetrating to the prospective geological units.
Qualified Person
Andre J. Audet, P.Eng., Vice-President - Exploration, Cadillac Mining Corporation, fulfills the position of Qualified Person for Cadillac Mining Corporation, as per National Instrument 43-101.
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 aggressive exploration programs. Its business model provides shareholders access to a wealth of exploration experience, dedicated management and the opportunity to experience discovery through a very conservatively capitalized company. The Company now has approximately 27 million shares outstanding.
Disclaimer
Statements contained in this release that are not historical facts may be "forward-looking statements". Such statements are subject to risks and uncertainties and other factors which may cause actual developments or results or level of activity or performance to vary materially from those projected by Management.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.
For more information, please contact:
Website www.cadillacmining.com
Bernie Kennedy 877-489-4440 Victor Erickson 604-684-7300
President & CEO
Email berniekc@telus.net v.erickson@cadillacmining.com
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Source: Cadillac Mining Corporation (TSX-V: CQX) http://www.cadillacmining.com
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