Cassidy Proposes Financing and 1 for 3 Share Consolidation

Cassidy Gold Corp. (the "Company") (TSX VENTURE:CDY) has arranged a non-brokered
private placement of up to 20,000,000 units at a price of $0.05 per unit for
aggregate proceeds of up to $1,000,000. Each unit will consist of one common
share of the company and one non-transferable share purchase warrant, each
warrant entitling the holder to purchase an additional common share at a price
of $0.10 per share for a period of one year from the completion of the offering.
Shares acquired by the placees, and shares which may be acquired upon the
exercise of the share purchase warrants, will be subject to a hold period of
four months plus one day from the date of completion of the financing in
accordance with applicable securities legislation. Finder's fees in amounts yet
to be determined may be paid to persons who introduce the company to investors.
Proceeds will be used for working capital, as well as an induced polarization
geophysical survey and further drilling upon the Company's Kouroussa Gold
Project, Guinea West Africa.


The Company also announces that upon completion of the financing described
above, it will effect, subject to shareholder and regulatory approval, a
consolidation of its issued common shares on the basis of 3 old shares for 1 new
share. The Company intends to call a special shareholders meeting on or about
July 30, 2009 to seek shareholder approval of the consolidation.


As disclosed in the Company's news release of February 18, 2009, "Initial
Scoping Results for Cassidy Gold's Kouroussa Gold Project, Guinea, West Africa",
Coffey Mining recommended further work focused on the discovery of additional
"new" resources. Permits have been renewed, and pending completion of the
current financing, the project is on care and maintenance.


The scoping study has concluded that Kouroussa could produce an average of
79,000 ounces of gold annually at a cash operating cost of $484 (U.S.) per ounce
over a six-year mine life.


The study proposes 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 one million tonnes per annum
("Mtpa"). The average gold recovery is 94.5 per cent 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.


The NPV 10% AND IRR SENSITIVITY TO GOLD PRICE table shows the net present value
("NPV") at a discount rate of 10 per cent and the internal rate of return
("IRR") for the project for a range of gold prices at a milling throughput of
one Mtpa employing a gravity-CIP process configuration and assuming 100 per cent
equity financing. Project economics are favourable at a gold price of greater
than $900 (U.S.).




NPV 10% AND IRR SENSITIVITY TO GOLD PRICE

Au price (U.S./oz)      NPV10% (US$ million)            IRR (%)

$750                                 -$23.6                  1

$838                                   $0.0                 10

$900                                  $16.8                 16

$950                                  $30.3                 21

$1,000                                $43.7                 25



Scoping work was based on an indicated resource of 680,000 ounces contained in
11.38 million tonnes grading 1.9 grams per tonne gold and an inferred resource
of 363,000 ounces contained in 6.46 million tonnes grading 1.7g/t Au. 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.
Coffey Mining validated and interpreted the exploration data, constructed wire
frames, completed three-dimensional block models, and estimated resources for
each of the mineralized zones using an ordinary kriging technique. 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.


Pit optimization studies confirm that the bulk of potentially mineable resources
are contained in the Koekoe Trend, particularly in the Sanu Filanan deposit,
with important contributions coming from the Kinkine Trend. The Sodyanfe Trend
deposits (Junction-Bag Farm) are too low grade to contribute significantly to
the resource base given current economic conditions.


In addition to a conventional gravity-CIP process configuration, a gravity-only
option was investigated. Gravity recoveries range between 62.5 per cent and 58.4
per cent for oxide, transitional, and sulphide ore types. These relatively low
recoveries negatively affect the economics for a gravity-only configuration,
though considerably more test work is required to assess this option more fully.


A series of metallurgical test work including gravity recoverable tests,
variability extraction tests, comminution tests, and viscosity settling tests
will also be required. Further study on defining tailings storage facility
requirements and geotechnical and hydrological characteristics will be needed.
Baseline studies of environmental and social conditions will be necessary as
well.


In the scoping report, Coffey Mining recommended further work focused on the
discovery of additional "new" resources. A series of metallurgical test work
including gravity recoverable tests, variability extraction tests, comminution
tests, and viscosity settling tests were also recommended. Further study on
defining tailings storage facility requirements and geotechnical and
hydrological characteristics will be needed. Baseline studies of environmental
and social conditions will be required as well.


Company management believes that more work is warranted to move the project
toward feasibility including trying to reduce capital and operating cost
estimates and investigating alternative mining configurations.


The technical content of this news release has been prepared under the
supervision of Christopher Wild, P.Eng, Vice-President Exploration, who is a
Qualified Person under National Instrument 43-101. Harry Warries, MAusIMM,
principal consultant, is the qualified person overseeing the Kouroussa scoping
study on behalf of Coffey Mining.


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.
Cassidy Gold Old (Tier2) (TSXV:CDY)
過去株価チャート
から 5 2024 まで 6 2024