BMR weekly: CQXCadillac Mining (CQX, TSX-V)
Cadillac Mining has been a star performer since we introduced this intriguing company to BMR readers a month ago, but we have reason to believe the best is yet to come…Cadillacwas off a penny for the week at 40.5 cents and reached a multi-yearhigh of 50 cents last Tuesday, the first trading day of 2011…the declinethe last three sessions has eased the overbought condition considerablywith the Chaikin Money Flow indicator actually rising, a very bullishsign…there are several really interesting and powerful dynamics at workat the moment with Cadillac, the newest one being the large claim position it holds to the south and west of Vantex’s (VAX, TSX-V) Galloway Project…Vantexhas more than doubled in value on high volume since December 30 when itannounced that Robert McEwen has taken a significant position in thecompany…McEwen is bullish on Galloway, and you can be sure he’s wellaware of Cadillac’s holdings immediately adjacent tothat property…drill results are expected soon from eight more holes fromthe Moriss Zone at Galloway…a little further east, Cadillac holds a 100% interest in seven strategic and valuable claims (164 hectares in total) immediately adjacent to Richmont Mines‘ (RIC, TSX) Wasamac Property where drilling has proceeded with increasing urgency since last May…Wasamac is a former producer and Richmont is making new discoveries there…more drill results and a new resource estimate are expected this month…what’s particularly interesting is that the principal structure that hosts the Gold mineralization at Wasamac dips northerly toward the seven claims owned by Cadillac…in addition, from the only hole Cadillachas drilled at its Wasa claims, a hole that they deepened last summer,the company discovered a 300-metre thick altered zone that’sinterpreted to be a feeder system typical of those seen under VMSsystems in the Noranda camp…it’s clear that Cadillac’s “Wasa” claims, largely untested, hold outstanding potential…another factor driving Cadillacis the fact the company appears to be close to nailing down someimportant property acquisitions in the Great Basin of the western UnitedStates, “elephant country” for Gold…as stated in CQX’s December 30 news release, “managementis targeting several acquisitions generated from in-house research,data analysis and prospecting conducted over the past year“…we met with CadillacPresident and CEO Victor Erickson prior to our departure to Quebec lastweek and he’s an impressive individual with a very strong industrybackground and the ability and determination to make some big thingshappen with this company…at his side is Andre Audet(VP, Exploration) who also has excellent credentials…we’re extremelycomfortable with this situation and the company’s market cap is stillonly $10 million with a highly attractive share structure…insiders arehanging on tightly to their positions despite the significant increasein the share price over the past couple of months…Cadillac has partnered with Visible Gold (VGD, TSX-V) on nearly 7,500 hectares in the Rouyn, Beauchastel and Dasserat townships including the claims beside Vantex’s Galloway Project…Visible Gold intends to be very aggressive in the exploration of these properties and that bodes extremely well for Cadillac which continues to hold a 100% interest in its “Wasa” Property as well as its “Gan” Property, 1.6 kilometres north of Richmont’s Francoeur Mine underground workings…