Tuesday, 14 February 2012

Cadillac Resources boosts K1-1 deposit inferred resources to 53.6 mln tonnes

Cadillac Ventures (CVE:CDC) Tuesday unveiled an updated resource estimate for its K1-1 deposit within its Thierry copper exploration property in Ontario.
Investors cheered the news Tuesday afternoon, sending Cadillac stock up 10 percent to 22 cents.

The company gave an updated inferred mineral resource at K1-1 of 53,614,000 tonnes grading 0.38 percent copper, 0.10 percent nickel, 1.83 grams per tonne (g/t) silver, 0.03 g/t gold, 0.05 g/t platinum and 0.14 g/t palladium.

Cadillac president and CEO Norman Brewster said: "Cadillac is extremely pleased with the results of the Winter 2011 drill program and the update to the Inferred mineral resource at K1-1. The company will now evaluate overall development options for the Thierry Property."

Tuesday's updated inferred resource represents an increase of greater than 150 percent over the initial September 2011 inferred resource, and has been provided by P&E Mining Consultants of Brampton, Ontario.

Cadillac Ventures attributed the increase in the inferred resource due to several factors, including results from the 26 holes drilled by Cadillac in the Winter 2011 program, an increase in the trailing average metals prices since September 2011, lowered operating costs at K1-1 - which were derived from a conceptual combination of operations at the K1-1 open pit deposit and the Thierry underground deposit - and the inclusion of additional data not considered in Sept 2011.

The K1-1 property consists of a global mineralized inventory of 75,857,000 tonnes grading 0.38 percent copper, 0.10 percent nickel, 1.81 g/t silver, 0.02 g/t gold, 0.05 g/t platinum and 0.14 g/t palladium.

K1-1 is located approximately three kilometres to the east of the Thierry Mine project, both being within the boundaries of the 11,538 acre Thierry property, occupying only a small portion of the property.

This update of the K1-1 resource estimate will affect a future production decision at Thierry, as the close proximity of the deposits to each other allow cost efficiencies based upon the sharing of the infrastructure and processing plant capacity.

Sharing of facilities between the deposits should enable Cadillac to realize lower production costs, and therefore process material of a lower grade than would be envisioned based upon either deposit operating independently of the other.

Earlier this month, Cadillac released drill results from K1-1 including hole K-11-33, which intersected 140 feet of 0.289 percent copper and 0.066 percent nickel, including 30 feet of 0.423 percent copper and 0.071 percent nickel, and 40 feet of 0.326 percent copper and 0.068 percent nickel. The hole also intercepted 20 feet of 0.385 percent copper and 0.091 percent nickel.

Other results included hole K-11-36, which returned 5 feet of 0.968 percent copper and 0.146 percent nickel.

In January, the company reported drill results from the first eight holes of the 26-hole program, reporting further results last week, with highlights including 110 feet of 0.626 percent copper and 87.5 feet of 0.546 percent copper.

Cadillac is a development-focused copper company currently advancing its 100 percent owned Thierry property, near Pickle Lake, Ontario. The Thierry property consists of the past producing Thierry Mine, and hosts two NI 43-101 compliant resources: Thierry Mine and K1-1.

Overall, the Thierry Mine deposit has a current resource estimate consisting of 8.3 million tonnes measured and indicated grading 1.73 percent copper and 0.20 percent nickel, as well as 14.6 million tonnes inferred grading 1.70 percent copper and 0.16 percent nickel. The deposit remains open at depth and to the west.

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