VANCOUVER, Jan. 17 /CNW/ - Cadillac Mining Corporation (TSXV: CQX) ("Cadillac") is pleased to announce the assembly of a large land position in the
Goldstrike (also known as Bull Valley) Mining District in western
Washington County, southern Utah.
Cadillac has executed three leases comprising 33 patented claims, and
has acquired a further 163 Federal claims by staking, contiguous with
the patented claims. A lease on the fourth and final group of patented
claims is under active negotiation. Only the leases are subject to a
production royalty of 2.5% of net smelter return, as commonly defined
in the industry, while no securities will be issued under the
agreements. Initial advance royalty payments will aggregate at
approximately US$40,000. When the final parcel is acquired, the
property will comprise approximately 3800 acres, covering all of the
known hard-rock gold occurrences of the historic Goldstrike District.
The project, situated about 5 miles east of the Nevada border, is
easily accessible by approximately 30 miles of paved and graveled roads
northwest of St. George, Utah.
Hardrock mining in the Goldstrike District dates to the early 20th century, when narrow 'bonanza' grade veins were mined from shallow
shafts and adits. In the 1980's the advent of heap leaching of
oxidized low-grade ores encouraged Tenneco Minerals to place the
property into production. Published records indicate that between 1988
and 1996, 209,835 oz. gold and 197,654 oz. of silver were recovered
from 6,858,000 short tons of ore mined from twelve near-surface
deposits, extending over a roughly four mile-long trend. Over the life
of the heap leach operation, where large-scale mining ceased in 1994,
the average grade delivered to the pads was reported at about 0.041 oz.
gold per ton, or 1.40 gram per tonne.
The Goldstrike District lies within a recognized SW-NE trending corridor
that 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. The project is situated at the southern edge of a Tertiary
volcanic field where it overlaps deformed Paleozoic rocks and overlying
Eocene-Oligocene sediments. Mineralization 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. Gold is associated
with widespread silicification, locally described as intense.
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.
The only exploration conducted subsequent to the termination of
operations comprised three core holes to about 300-ft. depth under each
of the main pits, and finally a six-hole RC program in 1999 mainly near
the largest pit to reported depths of 1200 to 1680 ft. Results were
deemed inadequate at the time to justify further exploration.
The Company has acquired a significant quantity of production and
exploration data converted to digital form in 1999. Cadillac is
pursuing additional exploration and mining information reportedly in
the possession of other parties. It is management's intention to
assemble all such data in a digital model to gain a clearer
understanding of the geological setting and controls to the gold-silver
mineralization over the breadth of the district. This wealth of
historical data is expected to lead directly to numerous drilling
In addition to exploring known trends for extensions to the previously
mined deposits (that would be particularly attractive at today's
elevated metal prices), it will be the Company's strategy to drill for
higher grade mineralization at depth. This approach has been
successfully applied at several of the open pits in Nevada where the
geological environment is similar.
Since the late 1980's the Utah portion of the Great Basin has not seen
the intensity of exploration experienced in neighbouring Nevada,
despite the fact that the State has a long and significant mining
history, and its governmental agencies are supportive of the
industry. It is encouraging to note that the Fraser Institute ranks
Utah closely behind Nevada in terms of overall attractiveness for
Victor Erickson, President & CEO of Cadillac Mining Corp., commented,
"Management feels that Cadillac's re-consolidation of the Goldstrike
District presents an extraordinary opportunity. By applying recent
advances in the understanding of Great Basin deposit models to a camp
that was last mined at a time of much lower and declining gold prices,
we are confident that the potential for discovery of economic surface
and deep-seated gold mineralization is high."
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:
Cadillac is a junior resource company focused on the acquisition,
exploration and development of large-scale precious and base metal
mineral properties in Quebec and the western USA. Currently it has
25,534,828 shares outstanding.
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.
SOURCE Cadillac Mining Corporation
For further information:
Cadillac Mining Corporation
Victor Erickson, P.Eng.
President & CEO
Tel.: (604) 684-7300