May 16, 2011 (Filing Services Canada) -- Cadillac Mining Corporation (CQX - TSX Venture), wishes to inform shareholders and interested parties that a PowerPoint presentation has just been filed on its website www.cadillacmining.com. The presentation provides a comprehensive overview of the Goldstrike Project located on the southwestern limit of the Great Basin in southern Utah, and the Break Project on the Cadillac-Larder Lake Break in the Abitibi geological province of Quebec. In addition, a 3-D video presentation or "virtual tour" of approximately 1400 drill holes on the Goldstrike Project has been posted on Cadillac's website.
Goldstrike Property
In January, Cadillac Mining announced the leasing of several patented properties, and the staking of 163 federal claims in the historic Goldstrike District northwest of St. George, Utah. At that time the Company also noted the acquisition of a substantial volume of drilling data generated primarily by mine operators Tenneco Minerals and USMX. An initial re-compilation and review of that information has now been completed, so that it is now possible to graphically present an overview of the project to clearly demonstrate its exploration potential.
The Goldstrike District lies within a recognized SW-NE trending corridor known as the Iron Springs Belt, which stretches approximately 115 miles from the Delamar gold deposit in Nevada, to the Parowan iron deposits in Utah. It is thought to be the expression of a deep-seated mineralizing system tapping a basement lineament.
Mineralization at Goldstrike is controlled by a complex and poorly understood structural regime that includes a low-angle thrust fault and a northeast-striking set of arcuate high-angle faults. The latter bound a sequence of horsts and grabens along which silica-related gold mineralization was introduced into a Tertiary sandstone host. Low-grade disseminated gold occurs in silicified hydrothermal breccias, silica flooded sandstone, and jasperoidal limestone. Mineralization, which is associated with arsenic, mercury, and antimony, resembles "Carlin-type" in many respects.
Tenneco Minerals and its successor USMX mined twelve near-surface deposits in the Goldstrike District between 1988 and 1994. Published records of heap-leaching of oxidized low-grade ores extending over a roughly four mile-long trend show:
- production of 209,835 oz gold and 197,654 oz silver
- processing of 6,858,000 short tons of ore
- average ore grade delivered to the leach pads at 0.035 oz Au per ton, (or 1.20 gram per tonne)
- mining cut-off grade of 0.018 oz Au per ton, (or 0.62 gram per tonne)
- approximately 18.7 million tons of waste mined over the life of the operation.
Records and reports dating to the early 20th Century also note the discovery of discontinuous pockets of bonanza-grade mineralization, but production of such ore was limited at that time. Communications with previous Tenneco/USMX management confirmed that a portion of such mineralization was identified and mined in the course of their operations.
The drill database for the property, which a major mining firm had originally compiled in 1997, is extensive:
- comprises approximately 1400 of the 1500 holes drilled since 1978 in and around the 12 pits
- most holes were vertical, and were limited to a depth of generally 250-300'
- only 37 have been drilled deeper than 400'
- there are very few core holes. The most recent three, drilled in 1997, reached depths of between 660' and 800'.
Personnel involved in the management of operations for Tenneco and USMX confirm that drill hole sampling and assaying was conducted to industry standards at the time. Consequently, Cadillac is confident that stated results are generally reliable, and suitably accurate. RC drill samples were usually taken on five-foot intervals, and split according to standard practice. Assaying was done at the mine's on-site laboratory with systematic duplicated checks sent to commercial laboratories for verification. Cadillac, for the purposes of its analysis and presentations, has arithmetically converted gold and silver values originally reported as oz per short ton (oz/ton), to grams per metric tonne (g/tonne), and has converted all imperial English measures to their metric equivalents.
Current precious metal prices will favourably influence the economics of the Goldstrike District. The graphical presentations recently generated by the Company strongly suggest that mineralization previously deemed uneconomic and left in place when mining ended in 1994 now merits re-examination. While still focusing on our original concept of exploring for deep-seated high-grade resources such as have been discovered in the major districts in Nevada, Cadillac also plans to complete a detailed analysis of the drill data for each of the known deposits, and the minimally tested intervening ground on trend, to determine the potential for significant volumes of low-grade mineralization amenable to bulk mining and recovery techniques. The drilling campaign currently under consideration will be designed to address both concepts.
Wasa Property
Cadillac's Wasa property comprises 164-hectares in seven claims contiguous with the north boundary of Richmont Mines' Wasamac project. Richmont has recently announced a NI43-101 resource of approximately 1.4 million ounces of gold, and plans for a scoping study in 2011. Shareholders should note that the Wasa property was not included in the option agreement with Visible Gold Mines Inc.
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 ground at depth is strong.
Drilling for the extensions of Wasamac mineralization presents significant potential, but since depth to the prospective zones exceeds 1000 meters, targeting the projection of known zones must be carefully considered. Richmont Mines has published details of its 2010 drilling, and has recently revealed results from the initial 9900 meters of the 35,000 meters of drilling planned for 2011. Results of this work will serve to better define trends in the gold-bearing zones as they approach the Wasa boundary. Consequently, Cadillac management has determined that it is in the best interests of the Company to review and assess that information as it becomes available, prior to drilling for down-plunge extensions of the Wasamac Main, #1 and #2 Zones.
The Wasa property also hosts an unrelated massive sulphide (VMS) target in the northern half of the property. In 2006 Cadillac's DDH06-12 intersected an alteration pipe carrying anomalous base metal values. In 2010 the hole was extended from 300 to 600 meters, demonstrating continuity of the pipe to the bottom of the hole. Situated immediately south of the Horne Creek fault, and 2.5 km east of the previously mined Aldermac copper-gold deposit, this target also lies directly beneath a Hydro-Quebec transmission line, ONR tracks, a natural gas pipeline, and other cultural sources of interference. Consultation with geophysical contractors has revealed that extraneous currents generated by these infrastructural features would mask response from any mineralized structures. Consequently, conventional geophysical techniques are unlikely to provide further useful data in identifying drilling targets. Therefore, exploration of this target will probably require systematic drilling based on the drilling, geological and geophysical data the Company has generated to date. Surface geochemistry is also being considered to exhaust all possible means of defining drill targets.
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, which has 27.4 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 this 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.co
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www.usetdas.com/PR/cadillac16052011.htm
Source: Cadillac Mining Corporation (TSX-V: CQX) http://www.cadillacmining.com
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