Cadillac Mining Corporation - Goldstrike Project Drill Program
Vancouver, British Columbia CANADA, November 15, 2011 /FSC/ - Cadillac Mining Corporation (CQX - TSX Venture), is pleased to announce that it has been granted a permit by the Division of Oil, Gas & Mining (OGM) of the Utah Department of Natural Resources in respect of 22 angle reverse circulation drill holes planned for its 100%-owned Goldstrike Project in the Great Basin, 35 miles northwest of St. George, Utah. The Company holds options on 40 patented claims, subject to a 2.5% NSR royalty, and has staked for its own account a further 208 claims.
A $50,000 reclamation bond has been established by Cadillac with the OGM so that work may commence immediately on the Phase One drilling targets the Company announced on September 12th. The only preparation required prior to drilling is the re-opening of approximately 200 meters of previously reclaimed drill access road.
The initial target is the West Hamburg Extension where the prior operator of the Goldstrike Mine delineated a heap-leachable Carlin-type gold resource. This zone was not mined because of rising stripping ratios, and falling gold prices in the mid-1990's. Cadillac's drill program will verify the historical resource, and develop a better understanding of complex geological controls to mineralization at Goldstrike. Finally, the program will provide a means of comparing current sampling and analytical techniques against the large historical database generated by previous operators, and now in the possession of the Company.
The Goldstrike camp lay dormant from the late 1930's until the mid-1970's, when a succession of entities began modern exploration that culminated in 1988 with the commencement of open-pit heap-leach gold production by Tenneco Minerals. Goldstrike was subsequently purchased by USMX, but mining was terminated in 1994 because of failing economics caused by falling gold prices, increasing strip ratios, and a problematic royalty. Total production over the period is reported to have been approximately 210,000 oz of gold from roughly 8.0 million tons of ore. The as-mined average grade from 12 pits was greater than 1.0 g/tonne.
Now that permitting for the drill program is in place, the Company intends to complete the private placement financing announced on October 31st, and commence drilling as soon as possible.
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 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 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
Investor Relations Gus Garisto 416-805-3106
Bay Street Connect
Company Victor Erickson 604-684-7300
President & CEO
v.erickson@cadillacmining.com
To view this press release as a web page, click onto the link below:
www.usetdas.com/PR/cadillacmining15112011.htm
Source: Cadillac Mining Corporation (TSX-V: CQX) http://www.cadillacmining.com
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