Cassidy Acquires Exploitation Permit for Kouroussa Gold Project, Guinea, West Africa
28 June 2011 - 11:30PM
Marketwired
Cassidy Gold Corp. ("the Company" or "Cassidy") (TSX VENTURE: CDX)
is pleased to announce that it has recently received an
Exploitation Permit covering all gold resources identified to-date
at the Company's 100% owned Kouroussa Gold Project located in
Guinea, West Africa. This permit runs through to October 14, 2019.
The Exploitation Permit covers an area of 16 square kilometres
within the Company's 949 square kilometre exploration permits,
which remain in good standing until September 29, 2012, subject to
renewal provisions described in the Guinean Mines Code.
The latest resource statement for the Kouroussa Gold Project,
announced in October 2008, highlighted an Indicated Resource of
680,000 ounces contained in 11,380,000 tonnes grading 1.9 g/t Au
and an Inferred Resource of 363,000 ounces contained in 6,466,000
tonnes grading 1.7 g/t Au (Table 1). Coffey Mining completed the
resource estimate in accordance with Canadian National Instrument
43-101, Standards of Disclosure for Mineral Projects and the
classifications adopted by CIM Council in December 2005.
Table 1 Total Indicated and Inferred Resources, Kouroussa Project (0.7 g/t
Au cut-off)
----------------------------------------------------------------------------
Resource Area Indicated Resource Inferred Resource
----------------------------------------------------------
Tonnage Au g/t Au oz Tonnage Au g/t Au oz
----------------------------------------------------------------------------
Koekoe Trend 5,586,000 2.3 420,000 4,963,000 1.8 293,000
----------------------------------------------------------------------------
Kinkine Trend 2,353,000 1.8 136,000 843,000 1.4 39,000
----------------------------------------------------------------------------
Sodyanfe Trend 3,441,000 1.1 125,000 660,000 1.5 31,000
----------------------------------------------------------------------------
TOTALS 11,380,000 1.9 680,000 6,466,000 1.7 363,000
----------------------------------------------------------------------------
A Scoping Study completed by Coffey Mining in early 2009
concluded that Kouroussa could produce an average of 79,000 ounces
of gold annually at a cash operating cost of US$484 per ounce over
a 6-year mine life. The Study proposed open pit mining of a series
of pits utilizing contract miners. Ore would be processed through a
conventional gravity-CIP (carbon-in-pulp) plant with a design
capacity of 1.0 million tonnes per annum. The average gold recovery
is 94.5% and the strip ratio is 6.7:1. Initial capital costs for
the Kouroussa Project were estimated to be $97 million, with a
further $11 million estimated for sustaining capital. The study
indicated at the time that project economics were favourable at a
gold price of greater than US$900; however, Cassidy management
determined that, at the time, the project would not justify the
capital expenditure.
In the scoping report, Coffey Mining recommended further work
focused on the discovery of additional "new" resources based on the
prospectivity of the overall project area. Metallurgical test work
including Gravity Recoverable Tests, Variability Extraction Tests,
Comminution Tests, and Viscosity Settling tests were also
recommended. Further study concerning Tailings Storage Facility
requirements, geotechnical and hydrological characteristics, and
environmental and social baseline studies will be required as
well.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The preliminary assessment
includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves, and there is no certainty that the preliminary assessment
will be realized.
The company is now in the process of updating this Scoping
Study.
Christopher J. Wild, P.Eng., COO and Vice-President of
Exploration of Cassidy Gold Corp., and a Qualified Person as
defined by Canadian National Instrument 43-101, has reviewed and
approved the technical disclosure contained in this news
release.
On behalf of the Board of Directors Cassidy Gold Corp.
James T. Gillis, President
This press release may be accessed at Cassidy Gold Corp.'s
website: www.cassidygold.com and at www.sedar.com
If you wish to be placed on Cassidy Gold Corp.'s e-mail press
release list, please contact us at cassidygold@telus.net
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news
release.
Contacts: Cassidy Gold Corp. Jim Gillis President 250-372-8222
250-828-2269 (FAX) www.cassidygold.com
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