Cadillac Ventures receives "speculative buy" from Industrial Alliance

Cadillac Ventures (CVE:CDC) received Monday a "speculative buy" rating from equity research firm Industrial Alliance Securities, as the junior miner holds one of the largest copper-nickel-platinum group element resorces in eastern Canada.

Industrial Alliance covered Cadillac for the "resource stock watchlist", and as such did not assign the company a target price.

However, Cadillac, whose main asset is the wholly-owned Thierry Mine project near Pickle Lake, Ontario, has much to look forward to in the coming months.

The Thierry mine, which is mainly a copper resource, but also includes nickel, silver, gold, platinum and palladium deposits, was last in operation under UMEX in the early 1980s.

Since re-acquiring the project, Cadillac has been focused on adding to the resource in the immediate area of the mine by drilling a gap in the current deposit model, referred to as the tooth target area. In early June, the Toronto, Ontario-based company successfully finished drilling the final hole of the tooth program, with positive results.

Cadillac also managed to conduct other successful drill programs at Thierry this year, expanding the strike length of mineralization at the main deposit both to the east and the west.

The property is divided across multiple satellite deposits, with the main Thierry Mine deposit currently hosting a measured and indicated mineral resource of 6.2 million tonnes at a grade of 1.92% Cu, and an additional inferred resource of 8.4 million tonnes at a grade of 1.79% Cu.

Industrial Alliance noted that the latest drilling will have drastically increased tonnage at this deposit, as well as confirmed the large, historical bulk tonnage at the K1-1 target, one of three satellite deposits at the project.

With K1-1 holding historic resources of nearly 900 million pounds of copper equivalent, at only 1000 feet, Cadillac will be able to expand the deposit as it remains open in all directions, Industrial said, with the target possibly holding  upward of 1 billion pounds of copper.

"With both deposits still open in all directions and the possibility of proving the remaining satellite deposits, CDC is well positioned to control an important Canadian Cu deposit," the report stated.

"With two large open resources potentially totaling above 1B lb CuEq each, CDC is trading well below its comparables.
"The sizeable increase that will follow the final evaluation of the gap infilling combined with confirmed resources from K1-1 will act as a catalyst for CDC."
Aside from the Thierry Mine and K1-1 deposits, Cadillac also has the ability to add other historic satellite deposits to the project, underscoring the potential for the company to reposition itself as an important copper resource in Canada.
Cadillac, whose largest shareholder is Trafigura, owns 100% of the Thierry Mine, with no net smelter royalties on the main deposit. The property, east of Pickle Lake, is 500 kilometres north of Thunder Bay, and is easily accessible year-round by provincial highways.

The company's shares rose more than 5.5% on Monday, to trade at $0.19 as of 10:36am EDT.