Cadillac Mining Corp. announces commencement of drilling on West Pelletier gold prospect and closing of Mineralfields placement
July 26th, 2008 - Posted in Copper, Gold, Gold Mining Companies, Mining StockCadillac Mining Corporation announces the commencement of diamond drilling on the West Pelletier gold prospect in eastern Beauchastel Township, approximately 6 km southwest of Rouyn-Noranda, Quebec. The Company acquired the eight 40-hectare claims by staking in 2002.
The drill target lies within a sequence of mafic flows and tablular gabbroic intrusions immediately north of the Cadillac Break, and south of the Wasa shear. A strongly magnetic feature identified in the Company’s 2004 airborne survey corresponds with an untested gabbroic body measuring about 270 meters in width and more than 1100 meters along strike. This iron rich, coarse-grained intrusion is considered a particularly favourable host for gold mineralization because of coincident cross faults and fracturing.
The unit has been traced discontinuously across nearly half of the township, extending eastward into Rouyn Township where it hosts the Lac Pelletier gold deposit 3 km due east and on strike with the Cadillac claims. Alexis Minerals Corporation has published measured, indicated and inferred resources of approximately 1.7 million tonnes averaging about 5.28 g Au per tonne, and plans for extracting a bulk underground sample during 2008 at Lac Pelletier.
The target unit is mainly covered by glacial soils, but locally it is partially exposed in a road-cut where narrow quartz-carbonate stringers containing small amounts of scattered pyrite are seen. The initial test hole is being drilled northward at a 50 deg dip and is collared south of the anticipated upper contact. The planned depth of 200 meters may vary depending on visual assessment of core.
Cadillac is pleased to also report that it has closed the private placement (the Private Placement) as initially announced on July 22nd of 2,000,000 Flow-Through Units of Cadillac at a price of $0.10 with MineralFields Group, for gross proceeds of $200,000. Each Flow-Through Unit consists of one common share to be issued on a “flow-through” basis under the Income Tax Act (Canada), and one common share purchase warrant of the Company (the Unit Warrants). Each Unit Warrant has a term of 18 months, during which period the holder is entitled to purchase one Common Share at a price of $0.15. All securities issued pursuant to the Private Placement are subject to four-month hold period which expires November 23, 2008. Fees comprising 100,000 24-month brokers’ warrants at $0.10 have been issued to each of First Canadian Capital Corporation and Limited Market Dealer Group Inc., while the latter will also receive a cash payment of $10,000. The Private Placement has been approved by the TSX Venture Exchange.
In addition to the West Pelletier drilling, the proceeds of the Private Placement will be utilized on Cadillac’s Tuzo Creek molybdenum and Osilinka-Cat Mountain copper-gold prospects.
Andre J. Audet, P.Eng, Vice-President Exploration, is the Qualified Person who has reviewed and verified the technical information detailed in this release.
Cadillac Mining Corporation is a junior resource company focused on the acquisition, exploration and development of precious and base metal mineral properties across Canada. Current activities include properties in Quebec, and British Columbia.
For further information
First Canadian Capital Corp., (866) 580-8891
Victor Erickson, (604) 684-7300, Email: v.erickson@cadillacmining.com
Website: www.cadillacmining.com
Source: Cadillac Mining Corporation
