Cadiscor Resources Inc.

Cadiscor Resources Inc.

October 09, 2007 08:30 ET

Cadiscor Resources Signs an Agreement With IAMGOLD to Acquire the Sleeping Giant Mine

MONTREAL, QUEBEC--(Marketwire - Oct. 9, 2007) - Cadiscor Resources Inc. ("Cadiscor") (TSX VENTURE:CAO) (FRANKFURT:DQN) is pleased to announce that it has signed an agreement with IAMGOLD Corporation, ("IAMGOLD") that provides Cadiscor with an option to acquire a 100% interest in the Sleeping Giant Mine and its related milling facilities ("Mine"). The option grants Cadiscor the right to take possession of the Mine at the end of production from current reserves and in any event not later than April 1st, 2009.

The Sleeping Giant Mine is located approximately 100 km north of Amos, Quebec, in the Abitibi region. The gold mine has been in operation since 1988. At the end of 2006, it had produced 825,000 gold ounces from 2,306,000 tonnes of ore, at an average grade of 11.1g/t Au. The production schedule calls for the end of the production at the end of 2008, at the exhaustion of actual known reserves. The mine has an on site 900 t/d C.I.P. mill. The 2007 Mine production target is 50,000 ounces of gold.

The main terms of the Option are the following:

1- Upon execution of the Option Agreement, Cadiscor will pay to IAMGOLD a cash amount of $300,000 and will issue to IAMGOLD 600,000 common shares of Cadiscor. Cadiscor will also issue to IAMGOLD on such date 1,000,000 common share purchase warrants, each such warrant entitling IAMGOLD to purchase one common share of Cadiscor at a price of $1.00 until April 1st, 2009.

2- On the earlier of (i) April 1st, 2009 or (ii) the date of completion of the mining and processing of the current reserves of the Mine, Cadiscor will take possession of the Mine by paying to IAMGOLD an amount of $5,000,000, payable, at Cadiscor's sole discretion, either in cash or by the issuance of the relevant number of common shares of Cadiscor at a price equivalent to the volume-weighted average price of the previous 20 trading days, less the maximum allowable discount permitted by the TSX Venture.

3- After acquiring the Mine and after Cadiscor has milled, at the Mine milling facilities, a total of 300,000 tonnes of ore from any source, Cadiscor will pay to IAMGOLD an amount of $1,000,000, payable at Cadiscor's sole discretion, either in cash or by the issuance of the relevant number of common shares of Cadiscor at a price equivalent to the volume-weighted average price of the previous 20 trading days, less a discount of 5%.

4- After the acquisition of the Mine, Cadiscor will commit to grant to IAMGOLD the following royalties: (a) a 1.0% NSR royalty on future gold production from the Mine property, with Cadiscor having the right to buy back such royalty for an amount of $1,000,000 at any time; and (b) a 1.5% NSR royalty on any future base metal production from the Mine property, it being understood that such royalty will only be granted if there exists more than 5,000,000 tonnes of Measured and Indicated resources on the property, as established by a 43-101 compliant resource estimate.

5- Upon execution of the Option Agreement, Cadiscor shall also have the right to carry out a surface or underground exploration program on any portion of land included in the Mine property by assuming all costs related to it. IAMGOLD will give Cadiscor access to the necessary facilities to conduct the exploration program and will charge to Cadiscor, at cost, all the expenses in connection therewith.

All issuances and potential issuances of Cadiscor shares under the deal are subject to the approval of the TSX Stock Exchange.

Regarding the transaction, Michel Bouchard, President of Cadiscor said: "The Sleeping Giant Mine acquisition gives us strategic milling facilities that will lower the capital costs necessary to develop the Discovery project following a positive feasibility study and production decision. At the same time, we strongly believe in the exploration potential of Sleeping Giant and we intend to design and carry out a significant exploration program in the coming months at the Mine, in collaboration with the Mine team."

Joe Conway, CEO of IAMGOLD said: "We believe that Cadiscor with its nearby Discovery property is the best suited for the future of the Sleeping Giant Mine. As a shareholder of Cadiscor, we are optimistic on the exploration results on both properties. We are confident that this transaction will ensure some form of continuity for the mining industry in the vicinity of the Sleeping Giant Mine in Quebec."

Cadiscor has invested more than $4M over the last year in successful exploration drilling on its wholly owned Discovery gold property located 70 km to the east of the Sleeping Giant Mine. In May 2007, a 43-101 report by the independent consulting firm InnovExplo Inc. established that Measured and Indicated resources totalled 1,163,186 tonnes at a grade of 5.53 g/t Au for 206,624 ounces. In addition, Infered resources totalling 966,864 tonnes at a grade of 6.06 g/t Au for 188,510 ounces were calculated. The gold zones remain open at depth and along strike. Cadiscor has recently restarted drilling on the Discovery property and has announced that Hole B-07-150A intersected 14.1g/t Au over 2.97 metres and Hole B-07-152 intersected 5,15g/t Au over 6.9 metres in the 1200 Sector, 600 metres to the east of the Main Area included in the 43-101 resource estimate. This gold zone is open at depth and laterally. Drilling is continuing on the zone.

InnovExplo Inc. is conducting a Scoping Study on the Main Area of the Discovery project to design an underground exploration program including a bulk sample and underground exploration drilling. The Report is scheduled for November 2007.

Cadiscor also carried, during the year, field exploration work on its Cameron Shear property, located east of the Discovery property and under option with Canadian Royalties Inc. Results are being compiled and drilling will follow in early 2008. The data from the wholly-owned Flordin property is also being compiled in preparation for a drilling campaign.

With the Discovery, Cameron Shear and Flordin properties, Cadiscor controls a length of 21 kilometres of prospective ground along the Cameron Deformation Zone. Cadiscor has 32 M shares outstanding, advanced gold properties in a secure environment and great partners. To know more about the company, go to its website at:

Forward-Looking Statements

This press release contains forward-looking statements subject to certain risks and uncertainties. There can be no assurance that these statements will prove to be correct, and actual results and future events could differ materially from those implied by such statements. These risks and uncertainties are discussed in the annual report filed with the securities commissions of Alberta, British Columbia, Ontario and Quebec, and in the 10-KSB annual report filed with the US Securities and Exchange Commission. The Company does not undertake to publicly revise or update any such statements on the basis of new Information, future events or any other event.


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