Cassidy Gold to Conduct IP Survey at Kouroussa Gold Project, Guinea
September 24 2009 - 11:13AM
Marketwired
Cassidy Gold Corp. ("Cassidy") (TSX VENTURE: CDX) is pleased to
announce plans for exploration work on the Kouroussa Gold Project,
located in Guinea, West Africa. Cassidy holds a 100% interest in
the project. The program will consist of a gradient Induced
Polarization (IP) survey of the Koekoe Prospect area extending over
to Sodyanfe and northeast to Kinkine. This grid, totalling 145
line-kilometres, will cover the entire project resource area and
the most prospective targets of the Kouroussa Project. Based on
results of the survey, targets will be prioritized ahead of a
planned drill program. IP surveys have been used to successfully
identify priority targets at Crew Gold's Lefa Gold Mine and
Semafo's Kiniero Mine, 120 kilometres north and 35 kilometres south
of Kouroussa, respectively.
The IP survey will extend across the length and width of the
Koekoe gabbro into the surrounding Birimian sedimentary strata.
Most mineralization associated with the Sanu Filanan, Sanu Filanan
North, Sanu Folo, JJ Vein, and KD-1 prospects is hosted in the
gabbro. However, significant intersections are also found off-board
of the Sanu Filanan trend and at the apparent southern limits of
both JJ and KD-1. These areas have seen limited drilling and remain
poorly understood. The survey will also cover adjoining resource
areas at Sodyanfe and Kinkine, following the Junction and Kinkine
faults, respectively. Both faults are believed to be controlling
structures to mineralization. A map highlighting the planned IP
program will be posted at www.cassidygold.com shortly.
Further exploration is designed to direct future drill programs
in identifying and expanding the resource picture at Kouroussa. A
Scoping Study completed by Coffey Mining earlier this year
recommended further work focused on the discovery of additional
"new" resources. Scoping work was based on 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 October 2008 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)
--------------------------------------------------------------------------
Indicated Resource Inferred Resource
--------------------------------------------------------
Resource Area 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
--------------------------------------------------------------------------
Based on these estimated resources, the Scoping Study 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 (Mtpa). The average gold
recovery is 94.5% and the strip ratio is 6.7:1. Initial capital
costs for the Kouroussa Project are estimated to be $97 million,
with a further $11 million estimated for sustaining capital.
Table 1 shows the Net Present Value (NPV) at a discount rate of
10% and the Internal Rate of Return (IRR) for the Project for a
range of gold prices at a milling throughput of 1.0 Mtpa employing
a gravity-CIP process configuration and assuming 100% equity
financing. Project economics are favourable at a gold price of
greater than US$900. Cassidy believes that more work is warranted
including trying to reduce capital and operating cost and
investigating alternative mining configurations.
Table 1 NPV10% and IRR Sensitivity to Gold Price
-------------------------------------------------
Au Price (USD/oz) NPV10% (US$ million) IRR (%)
-------------------------------------------------
$ 750 -$23.6 1
-------------------------------------------------
$ 838 $0.0 10
-------------------------------------------------
$ 900 $16.8 16
-------------------------------------------------
$ 950 $30.3 21
-------------------------------------------------
$1000 $43.7 25
-------------------------------------------------
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.
Christopher J. Wild, P.Eng, V.P. Exploration, is Cassidy's
Qualified Person for this release. Harry Warries, MAusIMM,
Principal Consultant is the Qualified Person overseeing the
Kouroussa Scoping Study on behalf of Coffey Mining. For more
information, please visit the Company's website at
www.cassidygold.com.
On behalf of the Board of Directors
Cassidy Gold Corp.
James T. Gillis, President & CEO
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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
Contacts: Cassidy Gold Corp. Jim Gillis President 250-372-8222
250-828-2269 (FAX) info@cassidygold.com www.cassidygold.com
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