Cavan Ventures Inc.
TSX VENTURE : CVN

Cavan Ventures Inc.

February 28, 2012 10:12 ET

Cavan to Acquire Flake Graphite Occurrence in Saskatchewan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2012) - CAVAN VENTURES INC. (TSX VENTURE:CVN) ("Cavan" or the "Company") announces today it has, subject to regulatory approval, entered into an agreement to acquire a 100% interest in mineral claims staked in Saskatchewan that cover the historic Lake 19 flake graphite occurrence, located 28 kilometers southwest of the community of Southend. The Lake 19 occurrence is also approximately 20km south of the Deep Bay graphite deposit, and 30km SW of Deep Bay East Project presently being explored by Strike Graphite.

The Lake 19 graphite showing occurs in the Kisseynew Domain, slightly north of Lake 19. The showing area as mapped in 1969 is underlain by garnet-biotite gneiss, garnet-biotite-sillimanite gneiss, and locally, graphite-rich garnet-biotite gneiss. The band of graphite-rich garnet-biotite gneiss on the property contains about 30% graphite across a width of 20 ft (6.1 m). As noted in the Saskatchewan Mineral Deposits Index (SMDI), the Lake 19 occurrence is listed as flake graphite hosted within meta-sediments. (From the Saskatchewan Mineral Deposits Index: http://www.er.gov.sk.ca/SMDI).

The Saskatchewan Energy and Resources website notes that sedimentary-hosted flake graphite occurs in several domains in Canada, but the Kisseynew Domain, hosts the most significant known graphite locations. In 1976, the Deep Bay graphite deposit located approximately 20km to the north of Lake 19 was estimated to host historical reserves of 1.8 million tons grading 10.32% graphite to a depth of 60m (From the Saskatchewan Energy and Resources Model Number B-12: Sedimentary-hosted Flake Graphite, 2p). The reserve estimates are historical, and a qualified person has not done sufficient work to calssify the historical estimates as current mineral resources, therefore these historical estimates should not be relied upon, and do not have currently demonstrated economic viability. Approximately 30km to the northeast Strike Graphite are working the Deep Bay East project which is an area of historic graphite occurrences and prior drilling.

Terms of the agreement are staking costs of $15,000 plus $15,000 cash and 600,000 common shares of the company, subject to regulatory approval, for a 100% interest in the claims. A finder's fee will be payable.

Natural graphite comes in several forms: flake, amorphous and lump. Of the plus-one-million tonnes of graphite produced annually, approximately 40% is of the most desirable flake type. A recent European Commission study regarding the criticality of 41 different materials to the European economy included graphite among the fourteen materials high in both economic importance and supply risk (Critical Raw Materials for the EU, July, 2010).

The technical contents of this release were approved by Mr. Marvin Mitchell, P.Eng. and qualified person as defined by National Instrument 43-101.

Cavan Ventures Inc. is a junior exploration company actively seeking mineral opportunities for the benefit of all its stakeholders. For further information please visit us at www.cavanventures.com.

ON BEHALF OF THE BOARD

Peter P. Swistak, President

Forward-Looking Statement:

Some statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Cavan Ventiures, Inc. Actual results may differ materially from those currently anticipated in such statements.

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

  • Cavan Ventures Inc.
    Peter P. Swistak
    President
    (604) 683-3995 or Toll Free: (888) 945-4770
    www.cavanventures.com