Friday, 17 February 2012

Secutor Capital sees "potential upside" at Cadillac Ventures' K1-1 deposit

Secutor Capital mentioned Cadillac Ventures' (CVE:CDC) in a recent research note after the junior explorer reported an increase in resources at its K1-1 deposit in Ontario earlier this week.
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 from the Thierry Mine and the K1-1 deposit.
Earlier this week, the company unveiled an updated resource estimate for its K1-1 deposit within its Thierry copper exploration property in Ontario.
The updated inferred mineral resource at K1-1 was for 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.
The new estimate represents an increase of greater than 150 percent over the initial September 2011 inferred resource, and was provided by P&E Mining Consultants of Brampton, Ontario.
In a research note, Secutor Capital said: "Cadillac Ventures trades at a discount to its peers. The reason for the discount could be partly because of its overall low percentage of Measured & Indicated (M&I) resources; the bulk of the resource is Inferred.
However, the Thierry project is in Ontario, near infrastructure, and contains a sizeable copper resource with potential upside, Secutor added.
"K1-1 could see additional growth with more drilling to expand the conceptual pit by including more of the global mineralization resource. Thierry could also potentially be expanded due to the combined project economics."
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.
The 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.
Thursday morning, Cadillac Ventures shares were flat at $0.20 on the TSX Venture Exchange.

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