Cadillac Ventures (CVE:CDC) (OTCBB:CADIF), a Toronto-based junior explorer, has reported an updated resource estimate for its Burnt Hill project in central New Brunswick, more than tripling resources since the last report completed in 2009.
The tungsten, molybdenum and tin project is now estimated to hold a total of 1.761 indicated tonnes grading 0.292% tungsten, 0.007% molybdenum and 0.008% tin, as well as 1.52 million inferred tonnes of 0.263% tungsten, 0.008% molybdenum and 0.005% tin. The report used a cut-off grade of 0.07% tungsten in open pit and 0.16% in underground mining.
The company, which late last year refocused its efforts on Burnt Hill, said Monday in a statement that this represents an increase of 282 per cent in the indicated category since the last calculated resource in August 2009, and a 158 per cent boost in the inferred category.
The newest report included several field compaigns completed between 2009 and 2012, according to Cadillac's statement. It took note of the fact that tungsten prices are "significantly higher" today than in 2009, pointing to a price of $470 mtu currently as opposed to about $230 mtu in 2009.
The Burnt Hill property stretches 11,000 hectares and although historical prospecting activity was carried out during the 1970s, work largely focused on the Burnt Hill mine site, and did not include exploration for silver. IN May, the company announced the discovery of polymetallic veining consisting of silver and copper at Burnt Hill - the first such discovery at the property to the company's knowledge.
The historic tungsten/tin mine was actually taken to test production by Cadillac's CEO, Norman Brewster, for Canadian International Paper during the early 1980s. The company has been working to update the resource model at the deposit, with the final product announced today.
"I am very pleased with the updated resource calculation for Burnt Hill which demonstrates the success of our exploration programs at Burnt Hill to date," said Brewster in a statement accompanying the new resource.
"We look forward to continuing to expand the Burnt Hill story as we move towards underground exploration and development at the Burnt Hill mine site and continue to push the exploration envelope around the mine site outward, building upon our successes."
The company used the existing model on the property, together with airborne and surface data to expand the area of interest outward from the historic Burnt Hill mine, resulting in the identification that the geological setting for the property is a major deformation zone that is up to 1.2 km wide.
Cadillac is focusing on this area during an initial ground proofing prospecting campaign at Burnt Hill, planned for this summer. Crews are currently prospecting, stripping and trenching for hand and channel samples in the "Target A" area, as a means to single out targets for a future drilling program. The company said the results of the hand and channel samples will be released once they are available.
As recently as late May, the Canadian junior put to bed a $1.2 million private placement financing despite a challenging time for junior exploration companies. Sino-Canada Natural Resources Fund I subscribed for 100 per cent of the offering, now owning roughly 12.1 per cent of Cadillac, or 21.7 per cent assuming full exercise of its warrants. The funds were put toward expenditures on its Canadian exploration properties and for working capital needs.
Cadillac also owns the nickel and copper Thierry project in northwestern Ontario, which consists of the past producing Thierry Mine and hosts two NI 43-101 compliant resources at the Thierry Mine and the K1-1 deposit.
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