Cadillac Options Copper -Gold Prospect In North-Central B.C.
October 1, 2007
Mr. Victor Erickson reports
OSILINKA PORPHYRY COPPER-GOLD PROSPECT OPTION - NORTH CENTRAL, B.C.
Cadillac Mining Corp. has executed an option agreement with Lysander Minerals Corp. to earn a 50-per-cent interest in the 9,002-hectare Osilinka-Cat Mountain porphyry copper-gold prospect located in north-central British Columbia.
The option requires Cadillac Mining to expend $2-million on exploration and pay Lysander 250,000 Cadillac shares over a four-year period to earn a 50-per-cent interest in the property and retain operatorship of a subsequent joint venture. Cadillac will issue 50,000 shares upon receipt of regulatory approval, and must expend $350,000 on the property by the end of 2008 to maintain the option. The property is not burdened by underlying royalties.
The Osilinka property is located approximately 170 kilometres northwest of Mackenzie, B.C., within a geological trend referred to as the Quesnel trough, and is readily accessible by the Kemess mine road. Mineralization consists of alkalic intrusion-hosted copper and gold-bearing disseminated sulphides. This is similar in character to the Kemess, Mount Milligan and the recently discovered Kwanika deposits, the closest to the Osilinka prospect of several such deposits within this very active trend.
Modern exploration, which dates to the acquisition of the prospect by BP Minerals in 1975, has included mapping, geochemical and geophysical surveys, trenching, and core drilling. This work has outlined strongly elevated copper-gold values covering an area roughly one kilometre in diameter on Cat Mountain. Much of the previous drilling has focused on the Bet zone on the west of this area, revealing a subeconomic porphyry system exhibiting intense K-feldspar alteration, and pyrite, chalcopyrite and magnetite mineralization. The most recent work, an airborne survey completed earlier this year, shows an anomalous response coincident with the 800-metre-by-200-metre Hoffman zone copper-in-soil geochemical anomaly. Two core holes tested the southern limit of the Hoffman zone in 2005, with encouraging results.
Cadillac has mobilized a diamond drill and portable camp to conduct a five-hole, 1,600-metre diamond drilling program that will test the full extent of the Hoffman zone anomalies. Commencement of drilling is imminent.
Management is of the opinion that prior exploration on Cat Mountain has defined several targets within a well-mineralized intrusive complex. The similarity of the style of mineralization to other alkalic porphyry deposits in the region is very encouraging.
The acquisition of the Osilinka option is the second step in the diversification of Cadillac Mining's activities from its 2006 to 2007 exploration campaigns for gold on or near the Cadillac Break in western Quebec. The acquisition of the Santa Maria copper-silver prospect was reported in Stockwatch news dated Aug. 29, 2007, for which a drilling permit application has been submitted to regulators.
