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Wednesday 29 February, 2012

Cassidy Gold Corp

NI 43-101 completed at Kouroussa gold project

RNS Number : 3502Y
Cassidy Gold Corp
29 February 2012
 



 

 

#1100 - 235 First Avenue
Kamloops, BC V2C 3J4

 

29 February 2012                                                                                           TSX-V: CDX

 

NI 43-101 PEA completed at Kouroussa gold project in Guinea

 

Cassidy Gold Corp. (the "Company" or "Cassidy") is pleased to announce that SRK Consulting (UK) Limited ("SRK"), an associate company of SRK Consulting (Global) Limited, have completed a Mineral Resource Estimate ("MRE") and a National Instrument NI43-101 Preliminary Economic Assessment ("PEA") report on the Mineral Assets of the Kouroussa Gold Project ("Kouroussa" or the "Project") located in Guinea. Cassidy's principal asset is its 100% owned interest, subject to a 15% state participation, in the Kouroussa gold concessions in Guinea, West Africa. Kouroussa, at a latitude of 10° 41' N and longitude of 9° 52' W, is located approximately 570km east of Conakry, the capital of Guinea.

 

The Company has two key exploitation licences that are the subject of the PEA. They cover an area of 16km2 in total and are valid for period of 10 years up to 14th October 2019. The key conditions of the licences are an obligation to pay a royalty of 5% and a corporate tax rate of 35%. The exploitation licenses are situated within a larger area of exploration licences covering 933 km2 which will require renewal on or before the 29th September 2012.

 

The Kouroussa basement geology incorporates the Siguiri Basin, which is a palaeo-Proterozoic sedimentary sequence. The Siguiri Basin represents part of the Birmian volcano-sedimentary series which dominates the basement geology of the West African Shield. The Birmian Series of West Africa is host to some of the largest gold deposits in the world, including Sadiola, Yatela, Morila and Syama in Mali, Obuasi, Bogosu, Prestea, Ahafo and Achem in Ghana, and Siguiri in Guinea, the latter also lying within the Siguiri Basin.

 

Block model quantities and grade estimates have been classified according to the CIM definition Standards for Mineral Resources and Mineral Reserves (November 2010) by Ben Parsons, MSc, MAusIMM(CP), Membership Number 222568, an appropriate independent Qualified Person for the purpose of National Instrument 43-101.

 

The Mineral Resource statement is shown in Table 1.

 

Table 1.           Mineral Resource Statement Summary*, Kouroussa Project, Guinea, SRK Consulting (UK) Ltd, effective date, 28th February 2012

 

Category

Quantity   Grade

Metal


Category


Quantity

Metal


Kt          Au

Au




Kt

Au

Au



000's






000's

 Open Pit**                                                gpt             oz        Open Pit**                                             gpt             oz  

Indicated - Laterite                  798.7        1.43         36.7         Inferred - Laterite                  124.0        1.66            6.6

Indicated - Saprolite               4140.9        2.11        281.4         Inferred - Saprolite                 435.9        1.94          27.2

Indicated - Transitional            1545.1      1.90         94.3         Inferred - Transitional           104.3        2.79          12.0

 Indicated - Fresh                      2599.3        2.63        219.7       Inferred - Fresh                       471.5        3.81          57.8

 Total Indicated                      9084.0        2.16        632.1       Total Inferred                     1164.7        2.77          103.6



 

Category

Quantity   Grade

Metal


Category


Quantity

Grade

Metal


Kt          Au

Au




Kt

Au

Au



000's






000's

 Underground***                                       gpt             oz        Underground***                                    gpt             oz

 

Indicated - Transitional             192.7        1.72         10.6

Inferred - Transitional             129.6        1.90           7.9

 Indicated - Fresh                       933.0        2.07         62.0   

 Total Indicated                     1125.6        2.01         72.7   

 Inferred - Fresh                     1978.0        2.33        149.8

 Total Inferred                     2107.6        2.33        157.7

Notes on table:

* Mineral resources are reported in relation to a conceptual pit shell. All figures are rounded to reflect the relative accuracy of the estimate. All composites have been capped where appropriate.

** Open pit mineral resources are reported at a cut-off grade of 0.43 g/t for laterite and saprolite material, 0.48 g/t for transitional material and 0.53 g/t for fresh material. Cut-off grades are based on a price of US$1,400 per ounce of gold, without considering revenuesfrom other metals within a limiting pit shell

*** Underground mineral resources are reported at a cut-off grade of 1.25 g/t for laterite and saprolite material, 1.28 g/t for transitional material and 1.37 g/t for fresh material andbelow the material considered potentially mineable viaopen pit methods. Cut-off gradesare based on a price of US$1,400 per ounce of gold, without considering revenues from other metals.

The preliminary assessment does not include inferred mineral resources as they 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.   Mineral resources that are not mineral reserves do not have demonstrated economic viability.

SRK has made the following key assumptions for the purpose of the PEA. These havemainly been derived from the Coffey report, SRK's estimation or internal database of recent projects or advised by the Company:

Gold price range (Au) of US$900 to 1,800/oz with a base case of $1,275/oz;

Discount rate of 8%is considered for the Base Case;

Royalty rate of 5% on gross production of gold;

Open pit mining options to be completed by a contractor mining fleet;

Corporate tax rate of 35%;

Working capital assumed to be US$2M based on a ratio of operating costs;

Contingency on capital costs of 20%;

100% equity has been assumed. SRK notes that there is a 15% free carried interest for the government specified in the licences.

SRK notes that process recoveries have been applied in the financial model to reflect the variation of process recovery according to material type. Therecovery has therefore been tonnage-weighted in this regard. Tables 2 to 4 summarise the results for the three scenarios.

Table 2.       Summary of NPV Results (1Mtpa Gravity and CIL)


NPV US$M, Pre Tax

NPV US$M, Post Tax

6%

169.4

110.1

8%

146.5

95.2

10%

126.5

82.2

12%

109.1

70.9

14%

93.7

60.9

The Internal Rate of Return (IRR) for this scenario is 37%. The payback period is 3.5 years.

Table 3.       Summary of NPV Results (1Mtpa Gravity)


NPV US$M, Pre Tax

NPV US$M, Post Tax

6%

67.9

44.2

8%

59.4

38.6

10%

51.8

33.7

12%

44.9

29.2

14%

38.6

25.1

The IRR for this scenario is 33%. The payback period is 2 years.


Table 4.       Summary of NPV Results (0.5Mtpa Gravity)


NPV US$M, Pre Tax

NPV US$M, Post Tax

6%

54.9

35.7

8%

47.31

30.8

10%

40.6

26.4

12%

34.6

22.5

14%

29.3

19.0

The IRR for this scenario is 31%. The payback period is 3.2 years.

Based on review of the drilling database and QA/QC data provided to SRK by Cassidy, SRK considers the data to be of a suitable quality to form the basis of the Mineral Resource estimate.

 

The technical content of this news release has been prepared under the supervision of Michael Beare, who is a Qualified Person under National Instrument 43-101.

 

Paul Rankine, CEO, commented, "The results of the Preliminary Economic Assessment report are very encouraging the Company has instructed SRK to continue with the Pre-Feasibility Study, which is expected in Q4 2012."

 

Contact

 

Cassidy Gold Corp.                                        +1 250 372 8222

Paul Rankine

Marion Bush

 

Threadneedle Communications                     +44 20 7653 9840

 

About Cassidy

 

Cassidy Gold Corp. is a gold exploration and development company listed on the TSX Venture Exchange (symbol CDX). Cassidy's principal asset is its 100% owned interest, subject to a 15% state participation, in the Kouroussa Gold Exploitation License and the surrounding gold exploration concessions in Guinea, West Africa. Cassidy's mission is to fast-track the development of the Kouroussa mine.

 

This news release contains certain statements that may be deemed "forward-looking statements". Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, except as required by law.

 

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.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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