BMR weekly: Cadillac MiningCadillac Mining (CQX, TSX-V)
Cadillac Mining is the newest addition to the BMRPortfolio and it enjoyed a powerful week, nearly doubling in value from17 to 33 cents with nearly 8 million shares traded on the CDNX…the potential of this situation is immense which is why we were so elated to discover it and put it forward to BMR readers for their consideration…while CQX has enjoyed a strong run, its market cap is still only $8.25 million – the lowest of any company in the BMR Portfolio…there are 3 major driving factors that are powering this stock higher…last Monday, Cadillacrevealed in a news release that it has been “researching preciousmetals opportunities” in the Great Basin for the past 2 years…readingbetween the lines of that release, it’s our conclusion that CQXis likely close to pulling the trigger on what is probably going to be amajor property acquisition in “Elephant Country”…the second drivingfactor is that Cadillac’s “Wasa” Property adjoins Richmont Mines‘ (RIC, TSX) Wasamac Property which is delivering very encouraging drill results…CQX‘s claims at Wasamac cover 164 hectares and are potentially very valuable with the strong probability that Richmont has a new mine in the works here…the principal structure hosting the Wasamac Gold mineralization dips northerly toward the 7 claims owned by Cadillac…inaddition, the Horne Creek fault, host to significant mineralization tothe northeast, and the related McClay splay, also cross Cadillac’s Wasa Property which is largely untested for its Goldpotential…only 1 hole has ever been drilled on these claims and itintercepted a zone that is interpreted to be a feeder system typical ofthose seen under VMS systems in the Noranda camp…the discovery of analteration pipe on these claims, and Richmont’s drilling success in the immediate vicinity, underscore the value of this important asset for Cadillac Mining…Richmontcontinues to drill at Wasamac (they have completed 18,000 metres) andmore results and a resource calculation are expected next month…a“strong zone of mineralization” has been intersected between 200 and 800metres vertical depth and Richmont is exploring thepotential for an underground operation…there is plenty of nearbyinfrastructure…the third driving factor is that Cadillac announced last Monday it has partnered with Visible Gold (VGD, TSX-V) on its other landholdings in the general area (over 7,000 hectares)…VGD is in the process of raising $5 million and is expected to be very aggressive in exploring these properties…if you look at GBB’s new map on its web site, all the areas in light green (primarily to the west of Granada) are held by Cadillac…Gold Bullion also picked up a property (South Kekeko) which is immediately south of Cadillac’s Kekeko Property…record volume surges like we’ve seen with Cadillacover the past few months are typically a tell-tale sign of bigdevelopments on the way…a new chapter in this company’s history isunderway and we believe it’s going to be a very exciting one…that’s alsowhat the chart is saying…with strong insider ownership and a highlyfavorable share structure with no possible selling pressure fromwarrants (no warrants are outstanding), this is a particularlyattractive situation…
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