Cassidy Gold Corp.

Cassidy Gold Corp.

June 28, 2011 09:30 ET

Cassidy Acquires Exploitation Permit for Kouroussa Gold Project, Guinea, West Africa

KAMLOOPS, BRITISH COLUMBIA--(Marketwire - June 28, 2011) - Cassidy Gold Corp. ("the Company" or "Cassidy") (TSX VENTURE:CDX) is pleased to announce that it has recently received an Exploitation Permit covering all gold resources identified to-date at the Company's 100% owned Kouroussa Gold Project located in Guinea, West Africa. This permit runs through to October 14, 2019. The Exploitation Permit covers an area of 16 square kilometres within the Company's 949 square kilometre exploration permits, which remain in good standing until September 29, 2012, subject to renewal provisions described in the Guinean Mines Code.

The latest resource statement for the Kouroussa Gold Project, announced in October 2008, highlighted 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 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)
Resource AreaIndicated ResourceInferred Resource
TonnageAu g/tAu ozTonnageAu g/tAu oz
Koekoe Trend5,586,0002.3420,0004,963,0001.8293,000
Kinkine Trend2,353,0001.8136,000843,0001.439,000
Sodyanfe Trend3,441,0001.1125,000660,0001.531,000

A Scoping Study completed by Coffey Mining in early 2009 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. The average gold recovery is 94.5% and the strip ratio is 6.7:1. Initial capital costs for the Kouroussa Project were estimated to be $97 million, with a further $11 million estimated for sustaining capital. The study indicated at the time that project economics were favourable at a gold price of greater than US$900; however, Cassidy management determined that, at the time, the project would not justify the capital expenditure.

In the scoping report, Coffey Mining recommended further work focused on the discovery of additional "new" resources based on the prospectivity of the overall project area. Metallurgical test work including Gravity Recoverable Tests, Variability Extraction Tests, Comminution Tests, and Viscosity Settling tests were also recommended. Further study concerning Tailings Storage Facility requirements, geotechnical and hydrological characteristics, and environmental and social baseline studies will be required as well.

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.

The company is now in the process of updating this Scoping Study.

Christopher J. Wild, P.Eng., COO and Vice-President of Exploration of Cassidy Gold Corp., and a Qualified Person as defined by Canadian National Instrument 43-101, has reviewed and approved the technical disclosure contained in this news release.

On behalf of the Board of Directors Cassidy Gold Corp.

James T. Gillis, President

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