NEWS Out CQXVancouver, British Columbia, Canada — January 17, 2011.
Cadillac Mining Corporation (TSXV: CQX) (“Cadillac”) is pleased to announcethe assembly of a large land position in the Goldstrike (also known as BullValley) Mining District in western Washington County, southern Utah.
Cadillac has executedthree leases comprising 33 patented claims, and has acquired a further 163 Federalclaims by staking, contiguous with the patented claims. A lease on the fourth and final group ofpatented claims is under active negotiation.Only the leases are subject to a production royalty of 2.5% of netsmelter return, as commonly defined in the industry, while no securities willbe issued under the agreements. Initialadvance royalty payments will aggregate at approximately US$40,000. When the final parcel is acquired, the propertywill comprise approximately 3800 acres, covering all of the known hard-rockgold occurrences of the historic Goldstrike District. The project, situated about 5 miles east ofthe Nevada border, is easily accessible byapproximately 30 miles of paved and graveled roads northwest of St. George, Utah.
Hardrock mining inthe Goldstrike District dates to the early 20th century, when narrow‘bonanza’ grade veins were mined from shallow shafts and adits. In the 1980’s the advent of heap leaching ofoxidized low-grade ores encouraged Tenneco Minerals to place the property intoproduction. Published records indicatethat between 1988 and 1996, 209,835 oz. gold and 197,654 oz. of silver were recovered from 6,858,000 short tons of ore mined from twelve near-surface deposits, extending over a roughlyfour mile-long trend. Over the life ofthe heap leach operation, where large-scale mining ceased in 1994, the average gradedelivered to the pads was reported at about 0.041 oz. gold per ton, or 1.40 gramper tonne.
The GoldstrikeDistrict lies within a recognized SW-NE trending corridor that stretches approximately115 miles from the Delamar gold deposit in Nevada, to the Parowan iron deposits in Utah.It is thought to be the expression of a deep-seated mineralizing system tappinga basement lineament. The project issituated at the southern edge of a Tertiary volcanic field where it overlapsdeformed Paleozoic rocks and overlying Eocene-Oligocene sediments. Mineralization is controlled by a complex andpoorly understood structural regime that includes a low-angle thrust fault anda northeast-striking set of arcuate high-angle faults. The latter bound a sequence of horsts andgrabens along which silica-related gold mineralization was introduced. Gold is associated with widespreadsilicification, locally described as intense.Low-grade disseminated gold occurs in silicified hydrothermal breccias,silica flooded sandstone, and jasperoidal limestone. Mineralization, which is associated witharsenic, mercury, and antimony, resembles “Carlin-type” in many respects.
The only explorationconducted subsequent to the termination of operations comprised three coreholes to about 300-ft. depth under each of the main pits, and finally asix-hole RC program in 1999 mainly near the largest pit to reported depths of1200 to 1680 ft. Results were deemed inadequateat the time to justify further exploration.
The Company hasacquired a significant quantity of production and exploration data converted todigital form in 1999. Cadillac is pursuingadditional exploration and mining information reportedly in the possession of otherparties. It is management’s intention toassemble all such data in a digital model to gain a clearer understanding ofthe geological setting and controls to the gold-silver mineralization over the breadthof the district. This wealth ofhistorical data is expected to lead directly to numerous drilling targets.
In addition to exploringknown trends for extensions to the previously mined deposits (that would beparticularly attractive at today’s elevated metal prices), it will be theCompany’s strategy to drill for higher grade mineralization at depth. Thisapproach has been successfully applied at several of the open pits in Nevada where thegeological environment is similar.
Since the late 1980’sthe Utah portion of the Great Basin has notseen the intensity of exploration experienced in neighbouring Nevada, despite the fact that the State hasa long and significant mining history, and its governmental agencies aresupportive of the industry. It isencouraging to note that the Fraser Institute ranks Utahclosely behind Nevadain terms of overall attractiveness for exploration.
Victor Erickson, President & CEO of Cadillac Mining Corp., commented, “Managementfeels that Cadillac’s re-consolidation of the Goldstrike District presents anextraordinary opportunity. By applyingrecent advances in the understanding of Great Basindeposit models to a camp that was last mined at a time of much lower anddeclining gold prices, we are confident that the potential for discovery ofeconomic surface and deep-seated gold mineralization is high.”
Qualified Person:
Andre J. Audet, P.Eng., Vice-President - Exploration, Cadillac MiningCorporation, fulfills the position of Qualified Person for Cadillac MiningCorporation, as per National Instrument 43-101.
About CadillacMining:
Cadillac is a junior resource company focused on the acquisition, exploration and development of large-scale precious and base metal mineral properties in Quebec and the western USA. Currently it has 25,534,828 shares outstanding.
Disclaimers
Statements contained in this release that are nothistorical facts may be “forward-looking statements”. Such statements are subject to risks anduncertainties and other factors which may cause actual developments or resultsor level of activity or performance to vary materially from those projected byManagement.
Neither TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of the release.
For more information, please contact:
Cadillac Mining Corporation
VictorErickson, P.Eng.
President & CEO
Tel.: (604) 684-7300
v.erickson@cadillacmining.com
www.cadillacmining.com