Cadillac Mining Corporation Goldstrike Project Update
Vancouver, British Columbia CANADA, September 12, 2011 /FSC/ - Cadillac Mining Corporation (CQX - TSX Venture), wishes to update shareholders as to recent progress on 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.
The Company is pleased to announce that compilation and interpretation of the historical data from previous exploration and heap leach mining operation from the Goldstrike District has delineated five Phase One drilling targets. Cadillac's exploration strategy will focus on establishing low-grade resources by extending historical pit boundaries in all directions, including confirmation of previously delineated but un-mined gold mineralization and secondly, testing at depth higher grade gold mineralization intersected by prior drilling.
Commencing in 1978, the Goldstrike District was explored by a succession of entities culminating in commercial gold production by Tenneco Minerals in 1988. As shown on the attached plan of the Company's property, each of the target areas lies in relatively close proximity to open pits mined by Tenneco Minerals and USMX Inc. between 1988 and 1994. USMX terminated mining in 1994 as a result of falling gold prices, a low-grade resource, increasing strip ratios, and a problematic royalty. Gold production from heap leach operations is reported to be approximately 210,000 ounces ("oz") from roughly 8.0 million tons. The reported as-mined average grade from 12 pits was greater than 1.0 g/tonne.
Cadillac has acquired a substantial portion of the historical data from previous exploration and mining activities, including mining records, assay data from approximately 1400 of the more than 1500 exploration drill holes, and a large number of related maps. The Company has converted most of this data to modern GIS formats, leading to the selection of the current targets.
Cadillac has yet to conduct its own drilling to verify prior results. A review of the data indicates that the drilling, sampling, and assaying techniques were performed according to best practices available at the time, under the direction of qualified and experienced personnel.
The accompanying table is an incomplete summary of the highest gold values obtained in exploration drilling, and is a sub-set of a larger tabulation as represented on the attached map. It is emphasized that most of the mineralization indicated falls within pit limits and will have been mined. However, some intercepts extend beyond pit boundaries and were not mined because of difficulties imposed by topography and economic constraints.
The style of the gold mineralization in the Goldstrike project is generally regarded as Carlin-type. It is controlled to a large degree by a network of complex intersecting sub-vertical faults and a stratigraphic interface of porous 'reactive' sediments. This geometric relationship between structure and stratigraphy successfully guided historical drilling conducted mainly with vertical reverse-circulation (RC) methods that served to delineate resources for bulk open-pit mining and heap leach operations. However this technique has shortcomings in defining physical characteristics of controlling vertical structures or testing grade over true widths.
The attached map also shows the distribution of historical pits with respect to principal fault systems. The plot of RC holes carrying grades in excess of 3.0 g Au/tonne over nominal 1.52 meter (5.0ft) sample intervals clearly shows a linear correspondence between high-angle structure and elevated gold values. This supports the concept pursued in the early 20th century wherein high-grade vein systems were developed from underground.
In the Phase One program Cadillac will sample obvious targets with a sequence of angled RC holes to verify historical results, prove potential for additional heap-leach grade mineralization, and prepare for a follow-up diamond drilling program designed to examine mineralizing structures at depth. Core drilling will also help confirm the limits of zones amenable to mining by open pit.
Cadillac is preparing permitting applications for the RC drilling program described above. This program is contingent on successfully raising adequate funding for its execution, and is expected to begin by November of this year. Results of this work, in combination with a compilation of a recently acquired library of non-digitized data, will form the basis for subsequent core drilling on structures at depth.
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 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
Victor Erickson 604-684-7300
President CEO
v.erickson@cadillacmining.com
To view the accompanying table , click on the link below or paste the link into your browser:
http://www.usetdas.com/maps/cadillacmining/Summary Selected Drill Data 12 Sep 2011 NR.pdf
To view the map mentioned above click on the link below or paste the link into your browser:
http://www.usetdas.com/maps/cadillacmining/Drill Targets Sep 11.pdf
To view this press release as a web page, click onto the link below:
www.usetdas.com/PR/cadillacmining12092011.htm
Source: Cadillac Mining Corporation (TSX-V: CQX) http://www.cadillacmining.com
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