|June 16, 2009|
Cadillac Signs Heads of Agreement on Tendal Massive Sulphide Zinc, Lead and Copper Project in Argentina
|Toronto, June 16, 2009 -- Cadillac Ventures Inc. (TSXV-CDC) ("Cadillac" or the "Company") is pleased to announce that it has entered into heads of agreement with Latin American Minerals Inc. (TSXV-LAT) ("Latin American"); whereby, Cadillac has the right to earn a 50% interest in the Tendal VMS Project of Latin American.|
The Tendal VMS Project (the "Project") is located in the La Rioja Province of NW Argentina and covers 36,434 hectares at an elevation of 3,000m in an accessible, current and historical mining district. The Tendal project encompasses several distinct targets, each of which have undergone varying amounts of exploration as carried out by Latin American, the most senior of these being the Verdiona Target, the Las Catitas Target and the Yegua Pircada Target.
Within the Tendal Project the Verdiona Target is defined by a distinct surface showing of copper, zinc and lead visible in a surface mineralization length of 2 kilometres and a width of 80 metres (Latin American Press release Feb. 18, 2008), within which several stacked lenses of mineralization occur. Surface diamond saw channel sampling of the Verdiona Target by Latin American has returned values of
*the above results were extracted from a press release of Latin American's released on Feb. 18, 2008 under the supervision of their inhouse "qualified person" Dr. Perez.
The surface zone has not been comprehensively examined below ground. Limited exploration has been carried out elsewhere on the full property. Cadillac intends to conduct immediately a program of surface geological mapping and sampling, as well as geochemical and geophysical surveys to lay the ground work for a diamond drilling program to occur as soon as technically possible.
Under the terms of agreement Cadillac will make a series of escalating cash payments totaling US$300,000, and by spending US$5.0 million on exploration, both over three years as follows:
Cadillac is not obligated to make payments and may terminate at any time. On completion of all payments the joint venture will be Latin American as to 50% and Cadillac as to 50%. The joint venture is formed now, and during exploration and expenditure of Cadillac funds, Cadillac shall be operator and make all decisions regarding exploration.
After the 50%/50% level is completed, non participation will trigger a standard dilution clause. Cadillac shall have a one-time right to earn an additional 10% by taking the project to feasibility, which it must elect within 60 days of the 50%/50% level. If either party's participating interest falls below 15%, such interest will automatically convert to a 3% NSR. The other party shall have a one time right to purchase 1% of the 3% NSR for US$ 1,000,000 and a second 1% of the 3% NSR for US$ 2,000,000. The diluted party shall retain a 1% NSR. At the completion of feasibility and upon a production decision Cadillac will have the one time option to purchase a further 10% interest in the project by paying to LAT US$2.5 million.
The transaction is subject to board approval by both parties, a site visit by Cadillac to be completed with 60 days, and TSX Venture Exchange and other applicable regulatory approval.
Cadillac is a development focused exploration Company which, in addition to the MATSA Huelva Joint Venture has two Canadian exploration projects, located in regions that have been historically active.
The New Alger project is a wholly owned, previously productive gold mine, located outside of Cadillac, Quebec. The Company has commenced a long term drill program designed to identify the scope of mineralization present on the Company's property along the Cadillac break, and outline new mineralization untouched by the historic, shallow, mining operations.
The Burnt Hill Project is 51% owned by the Company and located outside of Fredericton, New Brunswick. This operation was previously productive with a small scale pilot plant operating onsite recovering tungsten via photometric sorting. In recent drill campaigns the Company has received assay results demonstrating the previously disregarded presence of molybdenum and tin on the property. The objective of the drilling programs is the delineation of a 43-101 compliant reserve and resource, focusing in some part on the areas of historic production, in addition to the mineralization newly demonstrated at depth and along strike. The Company has also added significantly to the land position of this project, encompassing several other surface showing of tungsten, tin and molybdenum.
For more information regarding Cadillac, please visit our website at www.cadillacventures.com,
or call Norman Brewster, President and Chief Executive Officer at 416 203-7722.
Latin American Technical Information
Sampling and Analytical Protocols: All of the lithogeochemical samples were collected by geologists taking into account the nature of the material being sampled and with due respect to geologic contacts. The individual sample intervals varied depending on the location but typically ranged from 0.5 to 5.0 metres. Each individual sample weighted between 2 to 5 kilograms and was collected in a plastic bag, tagged with a pre-numbered ticket and tightly closed with plastic tape. The samples were stored in a secured location at the base camp and were transported by Company professional to Alex Stewart Assayers Argentina S.A. ("ASAA") laboratories in Mendoza (Argentina). ASAA is an ISO 9001-certified laboratory with headquarters in England. The samples were crushed, dried, split and grinded to #200 mesh. A total of 200 grams of sample have been separated for analysis. All samples were assayed for gold, multi-elements by ICP and Hg by cold vapor. Gold was done by Fire Assay and AAS using a 50 gram sample. For the multi-elements the samples were dissolved in Aqua Regia at 120ºC and read in ICP-OES. The samples that were above the upper detection limit for Cu, Pb and Zn (1%) for the technique were reanalyzed by dissolving in Aqua Regia again using a larger volume of solution to raise the upper detection limit to 30% for Cu, Pb and Zn. Silver above 200 ppm was re-run by Fire Assay with gravimetric finish. Accuracy of results is tested through the systematic inclusion of certified reference standards.
Forward Looking Statements
This news release may contain certain forward-looking statements under applicable securities laws. All statements, other than statements of historical fact, are forward looking. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "believe", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the risks of obtaining necessary licences and permits and the availability of financing, as described in more detail in the Company's securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and the reader is cautioned against placing undue reliance thereon. Cadillac assumes no obligation to revise or update these forward-looking statements except as required by law. All dollar amounts are in Canadian dollars unless otherwise noted.
Neither 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.