Cassius Ventures Ltd. (the "Company") (TSX VENTURE:CZ) is pleased
to provide an update on the Company's 2011 exploration program in
respect of its Nicaraguan gold properties acquired in May of this
year and to report the Company's July 31, 2011 quarter end
results.
Exploration Update
In June 2011, the Company completed the acquisition of sixteen
exploration concessions located across three project areas in
Nicaragua ("the Nicaraguan Gold Properties").
In July, 2011, the Company opened its office in the Nicaraguan
capital of Managua and commenced fieldwork in respect of the
properties with 10 geologists focused initially on the Murra Mining
District ("MMD") and Central North West ("CWN") concession
areas.
Environmental permits to allow prospecting (which allows
sampling of stream sediments, soils, outcrops and trenching to a
maximum depth of 1.5 meters) have been renewed for all MMD and CWN
areas, and an exploration permit which allows deeper trenching and
drilling has been obtained for Manto de Corona, one of the
Company's initial targets for drilling in the MMD area (see below).
Environmental permits to allow for the exploration of other
concession areas are in the process of being obtained through the
environmental application process.
In the northern MMD district, work started immediately on
trenching at the Manto de Corona target, located in the La Jalapena
concession. Work carried out by Fortress in 2007 and 2008 had
located a very pronounced gold anomaly. Several trenches had been
dug and sampled historically, together with sampling of several
tunnels, believed to be from artisanal mining carried out
historically.
The Company has built on this historic work, adding an
additional 210 meters of trenching and collecting some 260 samples
up to the end of August 2011. Work in this area is ongoing and an
initial drill program is planned for commencement in October
2011.
In addition to work done on the Manto de Corona, trenching work
was started in July 2011 on La Olingo, another well pronounced
anomaly located some 13 km south east of Manto de Corona. Two
trenches have been excavated, one of 62 meters, and the other 37
meters and to the end of August. Some 75 samples have been
collected for which the Company awaits results.
Stream sediment sampling over the large (47,000 hectare) La
Leonesa concession located within the CWN concession area has been
completed this month. To the end of August, some 632 samples had
been taken. Two areas showing anomalous gold values have been
identified so far in the Western part of the concession, area and
assay results are anticipated to be delivered in October, 2011.
Other CWN targets include Cerros Rojos, a large zone of
alteration (10 km2) identified and presumed to be a zone of
moderate to high sulfidation, Zopilote another low sulfidation
target identified near Santa Barbara Hill and a very large (100
km2) area of andesite lava containing magnetite and ilmenite in La
Leonesa.
The exploration program will continue through to May, 2012 where
the results the Company's sampling and drilling program will
dictate the extent of further exploration in the areas.
July 31, 2011 Quarter End Results
The Company announced today its financial results for the three
and nine month period ended July 31, 2011.
Total assets at July 31, 2011 amount to $4,270,610 (October 31,
2010 - $634,964), comprising cash and cash equivalents of
$2,105,698 (October 31, 2010 - $486,719), and Mineral Properties of
$2,110,525 (October 31, 2010 - $142,514). The increase in mineral
properties of $1,968,011 is primarily due to the acquisition and
commencement of the exploration program of the Company's Nicaraguan
Gold Properties. The increase in cash and cash equivalents of
$1,618,979 was the result of $2,755,427 received from private
placements net of share issuance costs, partially offset by
$641,691 incurred in operating activities, $18,307 from the
purchase of equipment, and $493,950 in mineral property
expenditures.
Three month period ended July 31, 2011
During the three months ended July 31, 2011, the Company
incurred a net loss of $216,165 compared to $44,939 for the three
months ended July 31, 2010. The loss of $216,165 was primarily due
to acquisition costs of $118,011 (2010 - $Nil) as it pertained to
the acquisition of the Nicaraguan Gold Properties; and consulting
fees of $27,400 (2010 - $Nil) related to strategic corporate
advisory services provided by various consultants of the
Company.
Lawrence Dick, a Director of the Company and a Qualified Person
as defined by NI 43-101, has reviewed and is responsible for the
technical information contained in this news release.
CASSIUS VENTURES LTD. (www.cassiusventures.com)
On behalf of the Board of Directors
John A. Thomas, President and Chief Executive Officer
This news release contains forward-looking information (within
the meaning of Canadian securities laws) about the Company and its
future plans. Forward-looking information reflects management's
expectations or beliefs regarding future events rather than
historical facts, and in this news release includes, without
limitation, statements regarding potential mineralization and
resources, exploration results, and future plans and objectives of
the Company. In certain cases, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does
not expect", "scheduled", "believes", or variations of such words
and phrases or statements that certain actions, events or results
"potentially", "may", "could", "would", "might" or "will" be taken,
occur or be achieved. There can be no assurance that
forward-looking statements will prove to be accurate, and actual
results could differ materially from those expressed or implied by
the forward-looking statements. Forward-looking statements are
based on certain assumptions that management believes are
reasonable at the time they are made. In making the forward-looking
statements in this news release, the Company has applied several
material assumptions, including, but not limited to, the assumption
that:
(1) the Company's ability to discover minerals in commercially
feasible quantities in Nicaragua, (2) the Company's ability to
raise the necessary financing for ongoing operations and to
complete any acquisitions or pursue any planned exploration
programs, (3) there being no significant disruptions affecting
operations, whether due to labour/supply disruptions, damage to
equipment or otherwise; (4) permitting, development, expansion and
power supply proceeding on a basis consistent with the Company's
current expectations; (5) certain price assumptions for gold; (6)
prices for availability of natural gas, fuel oil, electricity,
parts and equipment and other key supplies remaining consistent
with current levels; (7) the accuracy of current mineral resource
work and studies on the Company's property; and (8) labour and
material costs increasing on a basis consistent with the Company's
current expectations. Important factors that could cause actual
results to differ materially from the Company's expectations
include, among others, risks related to the ability of the Company
to obtain necessary financing and adequate insurance; the economy
generally; fluctuations in the currency markets; fluctuations in
the spot and forward price of gold or certain other commodities
(e.g., diesel fuel and electricity); changes in interest rates;
disruption to the credit markets and delays in obtaining financing;
the possibility of cost overruns or unanticipated expenses;
employee relations. Accordingly, readers are advised not to place
undue reliance on forward-looking statements. Except as required
under applicable securities legislation, the Company undertakes no
obligation to publicly update or revise forward-looking statements,
whether as a result of new information, future events or otherwise.
Reference to the section entitled "Risks and Uncertainties"
immediately preceding this section.
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 release.
Contacts: Cassius Ventures Ltd. John A. Thomas President and
Chief Executive Officer +1 604 558 1107 +1 604 566 9081
(FAX)www.cassiusventures.com
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