Cassidy Gold Corp.
TSX VENTURE : CDX

Cassidy Gold Corp.

September 24, 2009 12:13 ET

Cassidy Gold to Conduct IP Survey at Kouroussa Gold Project, Guinea

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 24, 2009) - Cassidy Gold Corp. ("Cassidy") (TSX VENTURE:CDX) is pleased to announce plans for exploration work on the Kouroussa Gold Project, located in Guinea, West Africa. Cassidy holds a 100% interest in the project. The program will consist of a gradient Induced Polarization (IP) survey of the Koekoe Prospect area extending over to Sodyanfe and northeast to Kinkine. This grid, totalling 145 line-kilometres, will cover the entire project resource area and the most prospective targets of the Kouroussa Project. Based on results of the survey, targets will be prioritized ahead of a planned drill program. IP surveys have been used to successfully identify priority targets at Crew Gold's Lefa Gold Mine and Semafo's Kiniero Mine, 120 kilometres north and 35 kilometres south of Kouroussa, respectively.

The IP survey will extend across the length and width of the Koekoe gabbro into the surrounding Birimian sedimentary strata. Most mineralization associated with the Sanu Filanan, Sanu Filanan North, Sanu Folo, JJ Vein, and KD-1 prospects is hosted in the gabbro. However, significant intersections are also found off-board of the Sanu Filanan trend and at the apparent southern limits of both JJ and KD-1. These areas have seen limited drilling and remain poorly understood. The survey will also cover adjoining resource areas at Sodyanfe and Kinkine, following the Junction and Kinkine faults, respectively. Both faults are believed to be controlling structures to mineralization. A map highlighting the planned IP program will be posted at www.cassidygold.com shortly.

Further exploration is designed to direct future drill programs in identifying and expanding the resource picture at Kouroussa. A Scoping Study completed by Coffey Mining earlier this year recommended further work focused on the discovery of additional "new" resources. Scoping work was based on an Indicated Resource of 680,000 ounces contained in 11,380,000 tonnes grading 1.9 g/t Au and an Inferred Resource of 363,000 ounces contained in 6,466,000 tonnes grading 1.7 g/t Au (Table 1). 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.



Table 1 Total Indicated and Inferred Resources, Kouroussa Project
(0.7 g/t Au cut-off)
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Indicated Resource Inferred Resource
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Resource Area Tonnage Au g/t Au oz Tonnage Au g/t Au oz
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Koekoe Trend 5,586,000 2.3 420,000 4,963,000 1.8 293,000
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Kinkine Trend 2,353,000 1.8 136,000 843,000 1.4 39,000
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Sodyanfe Trend 3,441,000 1.1 125,000 660,000 1.5 31,000
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TOTALS 11,380,000 1.9 680,000 6,466,000 1.7 363,000
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Based on these estimated resources, the Scoping Study concluded that Kouroussa could produce an average of 79,000 ounces of gold annually at a cash operating cost of US$484 per ounce over a 6-year mine life. The Study proposed 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 1.0 million tonnes per annum (Mtpa). The average gold recovery is 94.5% 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.

Table 1 shows the Net Present Value (NPV) at a discount rate of 10% and the Internal Rate of Return (IRR) for the Project for a range of gold prices at a milling throughput of 1.0 Mtpa employing a gravity-CIP process configuration and assuming 100% equity financing. Project economics are favourable at a gold price of greater than US$900. Cassidy believes that more work is warranted including trying to reduce capital and operating cost and investigating alternative mining configurations.



Table 1 NPV10% and IRR Sensitivity to Gold Price
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Au Price (USD/oz) NPV10% (US$ million) IRR (%)
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$ 750 -$23.6 1
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$ 838 $0.0 10
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$ 900 $16.8 16
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$ 950 $30.3 21
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$1000 $43.7 25
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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.

Christopher J. Wild, P.Eng, V.P. Exploration, is Cassidy's Qualified Person for this release. Harry Warries, MAusIMM, Principal Consultant is the Qualified Person overseeing the Kouroussa Scoping Study on behalf of Coffey Mining. For more information, please visit the Company's website at www.cassidygold.com.

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.

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