Cassius Ventures Ltd.
TSX VENTURE : CZ

August 29, 2012 17:57 ET

Cassius Ventures Ltd. Provides Exploration Update on the Leon Project Area and Concession Holdings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2012) - Cassius Ventures Ltd. (TSX VENTURE:CZ) (the "Company") is pleased to provide an exploration update in respect of the León project area.

As disclosed in the Company's press releases of June 7, 2012, and June 26, 2012, the Company presented initial results of geochemical and rock sampling assay results from two main areas within León: A porphyry target called Cerro Rojo and Las Mercedes - a vein type target. A full overview of the Company's exploration program in the León Project Area is described below.

The León target represents an exciting prospect which the Company hopes to advance over the coming months and the Company is in the process of exploring a number of alternatives to advance the property, including joint venture and / or partnership structures with mid to large tier gold companies.

John Thomas, President and CEO, added: "Recent sampling results from León show promising potential for uncovering additional mineralization at both targets. Our aim is to continue to advance these properties over the coming months to help further uncover the potential of the property."

Overview

The Leon concessions are located 100 km north of Managua and easily accessible by the Pan-American Highway and a good paved road 30 km to the east. The concession consists of 63,000 hectares forming one continuous block with one smaller concession (Paso Real) to the north of the Leon block.

The Leon concessions are located between El Limon, operated by B2 Gold and the La India mine owned by Condor Gold PLC, which is presently closed but has a JORC resource of 1.6 million ounces.

Access throughout the project area is excellent with gravel roads and trails. Topography in the area is generally flat and rolling, with low relief. The town of El Sauce, where the company has accommodation for employees, office space and storage and logging facilities, is located in the center of the concession. Local labor is readily available.

The exploration program at León has comprised:

  • Stream sediment, soil, rock chip, and trench channel sampling on concessions not previously sampled as well as concessions worked on historically
  • Soil geochemistry surveys on prospective areas
  • Mapping and rock sampling on the prospective areas

In all, a total of eight sediment gold anomalies have been identified in a trend which runs NW - SE across the León concessions (Figure 1).

Cerro Rojo

At Cerro Rojo, soil geochem sampling resulted in the outlining of an anomalous gold area, which was followed up by mapping and rock sampling. Mapping of the porphyry indicates a coverage of approximately 6 km² with oxidation, argillitization, quartz veinlets locally, and brecciation, with 1% to 2% pyrite. The porphyry is quartz-andesitic to dacitic in composition. Mafic volcanics occur in contact or adjacent to the quartz-feldspar porphyries and are observed in several areas to the east and west of the porphyries.

The geochem soil sampling results of this area demonstrate a strong gold anomaly associated with pyrite in a quartz-feldspar porphyry and with an associated Mo, Ag and Cu anomaly. The mineralization model for the area is a porphyry gold - molybdenum - copper mineralization. In 2011, a total of 1,058 soil samples were collected with maximum values of 125 ppb Au, 150 ppm Mo, and 297 ppm Cu.

As a result of the Au soil geochem anomalies, focused rock sampling of 148 rock samples were collected with maximum values of 14,011 ppb Au, 81 ppm Ag, 653 ppm Mo, and 144 ppm Cu. Rock sampling of the porphyry where there is brecciation, quartz veining, quartz flooding and silicification, resulted in eight samples returning values above 1.00 g/t Au. Mineralization in the eight samples occur over an open area of 500 m (east-west) by 350 m (north-south). The surface grab samples gave values of 14.01 g/t Au, 7.79 g/t Au, 6.26 g/t Au, 2.02 g/t Au, 1.99 g/t Au, 1.48 g/t Au, 1.13 g/t Au and 1.05 g/t Au (Figure 2).

The next stage of exploration at Cerro Rojo is to better define the extent of the porphyry, potentially through airborne and / or ground IP surveys.

Las Mercedes

At Las Mercedes, several stream sediment anomalies occur along a northwest trend stretching over a distance of 24 km and parallel to the orientation of the La India gold deposit.

A detailed soil geochem survey carried out at Las Mercedes defined four soil geochem anomalies based on 247 soil samples. In total, 25 soil samples returned anomalous values ranging between 50 ppb Au and 196 ppb Au. These Au soil geochem anomalies helped focus the mapping and rock sampling in areas of gold mineralization. One of the northern soil anomalies has two historical workings with 1.8 m wide quartz veins cutting through intermediate volcanics (andesites) and trending 119° dipping 60°S and two samples returned assays of 0.25 g/t Au and 0.33 g/t Au.

Prospecting and mapping west of the tunnels uncovered two mineralized areas: the first site at 850 m west-southwest grading 32.15 g/t Au in a quartz vein within silicified intermediate volcanics and a second site 1.50 km west within quartz veins and silicified intermediate volcanics assaying 55.25 g/t Au . The mineralization and structures trend northwest, similar to the mineralization trends at the La India deposit, southeast of the area. A third site, 700 m north of the first site noted above assayed 28.23 g/t Au in quartz veins within dacites. Soil geochemical anomalies in the southern part of Las Mercedes (block C) occur in an area of oxidized rocks within intermediate volcanics.

This area requires further mapping and rock sampling in order to further define mineralization in the area.

Update on Landholdings in Nicaragua

As noted above, in the light of challenging equity market conditions, the Company notes that it is currently in discussions with the Nicaraguan mining ministry to re-structure its concession holdings and rents held by its wholly owned subsidiary Fortress de Nicaragua S.A. As part of the restructuring, the Company is considering the extent of concessions held as well as potential joint venture opportunities in regards to certain concessions.

The restructuring is being undertaken in order to enable the Company to optimize its cash position in the coming months.

Further updates will be provided in due course.

To view Figures 1-3, please visit the following link: http://media3.marketwire.com/docs/cz829i.pdf.

CASSIUS VENTURES LTD. (www.cassiusventures.com)

On behalf of the Board of Directors

John A. Thomas, P.Eng., CEO and President

Eddy Canova, P.Geo., Director of Exploration of the Company and a Qualified Person as defined by NI 43-101, has reviewed and is responsible for the technical information contained in this news release.

This news release contains forward-looking information (within the meaning of Canadian securities laws) about the Company and its future plans. Forward-looking information reflects management's expectations or beliefs regarding future events rather than historical facts, and in this news release includes, without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "scheduled", "believes", or variations of such words and phrases or statements that certain actions, events or results "potentially", "may", "could", "would", "might" or "will" be taken, occur or be achieved. There can be no assurance that forward-looking statements will prove to be accurate, and actual results could differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements are based on certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including, but not limited to, the assumption that: (1) the Company's ability to discover minerals in commercially feasible quantities in Nicaragua, (2) the Company's ability to raise the necessary financing for ongoing operations and to complete any acquisitions or pursue any planned exploration programs, (3) there being no significant disruptions affecting operations, whether due to labour/supply disruptions, damage to equipment or otherwise; (4) permitting, development, expansion and power supply proceeding on a basis consistent with the Company's current expectations; (5) certain price assumptions for gold; (6) prices for availability of natural gas, fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels; (7) the accuracy of current mineral resource work and studies on the Company's property; and (8) labour and material costs increasing on a basis consistent with the Company's current expectations.

Important factors that could cause actual results to differ materially from the Company's expectations include, among others, risks related to the ability of the Company to obtain necessary financing and adequate insurance; the economy generally; fluctuations in the currency markets; fluctuations in the spot and forward price of gold or certain other commodities (e.g., diesel fuel and electricity); changes in interest rates; disruption to the credit markets and delays in obtaining financing; the possibility of cost overruns or unanticipated expenses; employee relations. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Reference to the section entitled "Risks and Uncertainties" immediately preceding this section.

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 release.

Contact Information

  • Cassius Ventures Ltd.
    John A. Thomas, P.Eng.
    CEO and President
    604 558 1107
    604 566 9081 (FAX)
    www.cassiusventures.com