Cassius Ventures Ltd.

September 29, 2011 19:05 ET

Cassius Ventures Ltd. Provides an Update on 2011 Exploration Program and Reports July 31, 2011 Quarterly Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 29, 2011) - Cassius Ventures Ltd. (the "Company") (TSX VENTURE:CZ) is pleased to provide an update on the Company's 2011 exploration program in respect of its Nicaraguan gold properties acquired in May of this year and to report the Company's July 31, 2011 quarter end results.

Exploration Update

In June 2011, the Company completed the acquisition of sixteen exploration concessions located across three project areas in Nicaragua ("the Nicaraguan Gold Properties").

In July, 2011, the Company opened its office in the Nicaraguan capital of Managua and commenced fieldwork in respect of the properties with 10 geologists focused initially on the Murra Mining District ("MMD") and Central North West ("CWN") concession areas.

Environmental permits to allow prospecting (which allows sampling of stream sediments, soils, outcrops and trenching to a maximum depth of 1.5 meters) have been renewed for all MMD and CWN areas, and an exploration permit which allows deeper trenching and drilling has been obtained for Manto de Corona, one of the Company's initial targets for drilling in the MMD area (see below). Environmental permits to allow for the exploration of other concession areas are in the process of being obtained through the environmental application process.

In the northern MMD district, work started immediately on trenching at the Manto de Corona target, located in the La Jalapena concession. Work carried out by Fortress in 2007 and 2008 had located a very pronounced gold anomaly. Several trenches had been dug and sampled historically, together with sampling of several tunnels, believed to be from artisanal mining carried out historically.

The Company has built on this historic work, adding an additional 210 meters of trenching and collecting some 260 samples up to the end of August 2011. Work in this area is ongoing and an initial drill program is planned for commencement in October 2011.

In addition to work done on the Manto de Corona, trenching work was started in July 2011 on La Olingo, another well pronounced anomaly located some 13 km south east of Manto de Corona. Two trenches have been excavated, one of 62 meters, and the other 37 meters and to the end of August. Some 75 samples have been collected for which the Company awaits results.

Stream sediment sampling over the large (47,000 hectare) La Leonesa concession located within the CWN concession area has been completed this month. To the end of August, some 632 samples had been taken. Two areas showing anomalous gold values have been identified so far in the Western part of the concession, area and assay results are anticipated to be delivered in October, 2011.

Other CWN targets include Cerros Rojos, a large zone of alteration (10 km2) identified and presumed to be a zone of moderate to high sulfidation, Zopilote another low sulfidation target identified near Santa Barbara Hill and a very large (100 km2) area of andesite lava containing magnetite and ilmenite in La Leonesa.

The exploration program will continue through to May, 2012 where the results the Company's sampling and drilling program will dictate the extent of further exploration in the areas.

July 31, 2011 Quarter End Results

The Company announced today its financial results for the three and nine month period ended July 31, 2011.

Total assets at July 31, 2011 amount to $4,270,610 (October 31, 2010 - $634,964), comprising cash and cash equivalents of $2,105,698 (October 31, 2010 - $486,719), and Mineral Properties of $2,110,525 (October 31, 2010 - $142,514). The increase in mineral properties of $1,968,011 is primarily due to the acquisition and commencement of the exploration program of the Company's Nicaraguan Gold Properties. The increase in cash and cash equivalents of $1,618,979 was the result of $2,755,427 received from private placements net of share issuance costs, partially offset by $641,691 incurred in operating activities, $18,307 from the purchase of equipment, and $493,950 in mineral property expenditures.

Three month period ended July 31, 2011

During the three months ended July 31, 2011, the Company incurred a net loss of $216,165 compared to $44,939 for the three months ended July 31, 2010. The loss of $216,165 was primarily due to acquisition costs of $118,011 (2010 - $Nil) as it pertained to the acquisition of the Nicaraguan Gold Properties; and consulting fees of $27,400 (2010 - $Nil) related to strategic corporate advisory services provided by various consultants of the Company.

Lawrence Dick, a Director 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.


On behalf of the Board of Directors

John A. Thomas, President and Chief Executive Officer

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
    President and Chief Executive Officer
    +1 604 558 1107
    +1 604 566 9081 (FAX)