Cadillac Mining to begin core drilling at Goldstrike project

4 March 2012 (Last Updated March 4th, 2012 18:30)

Cadillac Mining Corporation has unveiled plans to commence a 5,000m core drilling programme from next month at its Goldstrike project in southwestern Utah, US.

Cadillac Mining Corporation has unveiled plans to commence a 5,000m core drilling programme from next month at its Goldstrike project in southwestern Utah, US.

The work forms the next phase of exploration at its 100% owned Goldstrike project and will follow-up results from the Hamburg Extension.

Cadillac plans to use 30 to 40 angled diamond drill core holes for five targets on the prospect, about eight miles from the Nevada border.

Cadillac president and CEO Victor Erickson said: "Given the extent of the Carlin-style mineralization intersected in our December program, the broad area of prior mining on the property, and the generally permissive Great Basin geological environment, management believes that the Goldstrike project offers multi-million-ounce potential. However, Cadillac's efforts are still at an early stage."

Initially, core drilling will be employed at the Hamburg Extension, where 1.08 grams per tonne (g/t) gold over 73.1m, and 1.25 g/t over 82.3m was intersected in two reverse circulation (RC) holes last December.

Cadillac said drilling will focus on the information about the distribution, geometry and controls to mineralisation, since such detail cannot be readily determined with RC methods in a complex geological environment.

The Goldstrike property includes twelve former open pits that recovered about 210,000 oz of gold from heap-leach operations between 1988 and 1996.

The company's immediate target area runs about 2000m in length by more than 300m in width, and targets Carlin-style mineralisation confined to a silty-sandstone.

Cadillac's existing permit allows for the drilling of nineteen additional holes in the area of the Hamburg Extension, where several drill-ready pads are already being prepared in December.

A permit application for an additional thirteen drill holes has been partially processed by Utah Division of Oil, Gas & Mining and the company is currently in the process of securing funds to conduct the proposed programme.