Cassidy Gold drills 75 m of 2.4 g/t Au at Kouroussa

2006-03-16 13:29 ET - News Release

Mr. James Gillis reports

CASSIDY GOLD CORP.: KINKINE RETURNS 2.40 G/T AU OVER 75 METRES AT KOUROUSSA GOLD PROJECT, GUINEA

Cassidy Gold Corp. has released additional results from continuing reverse circulation and air-core drilling on its 100-per-cent-owned Kouroussa project, located in Guinea, West Africa. RC drill results highlight the new Kinkine zone, four kilometres northeast of the Sanu Filanan zone. Results include 2.68 grams per tonne gold over 60 metres in KRC828 and 6.01 grams per tonne gold over 7.0 metres and 2.40 g/t Au over 75.0 metres in KRC829.

Results for the remaining RC holes on the Bag Farm zone have also been received. Highlights include 3.88 g/t Au over 4.0 metres in KRC809 and 1.53 g/t Au over 6.0 metres in KRC815. Previous RC results for Bag Farm were presented in Cassidy Gold's news in Stockwatch dated March 2, 2006. A third drill has arrived on site to begin core drilling at Junction, Kinkine and Sanu Folo.

Kinkine zone

Fourteen RC holes totalling 1,496 metres were completed on the Kinkine zone to begin defining mineralization intersected in previous air-core drilling. Highlights of the air-core phase of drilling included 1.82 g/t Au over 23.0 metres in KRAB255 and 1.47 g/t Au over 56.0 metres in KRAB388 (Cassidy Gold news in Stockwatch -- Dec. 21, 2005, and Feb. 9, 2006).

Two fences of seven RC holes each, 80 metres apart, with holes spaced at 40 metres along each fence, were completed across the area outlined by air-core drilling. Holes were inclined at minus 50 degrees toward 120 degrees to intersect two observed structural controls to mineralization. The southern fence, KRC826 to KRC832, intersected a broad zone of mineralization (see table 1). Highlights include 1.27 g/t Au over 15.0 metres in KRC827, 2.68 g/t Au over 60.0 metres in KRC828, 6.01 g/t Au over 7.0 metres and 2.40 g/t Au over 75.0 metres in KRC829, and 1.81 g/t Au over 10.0 metres in KRC831. It should be noted that KRC828 terminated in mineralization. Several other intervals of significant mineralization occur within the broad zone of mineralization.

              Table 1  

       RC DRILL RESULTS FOR 

     KINKINE ZONE -- SOUTH FENCE

Hole    From     To    Length  Au

ID       m       m      m      m

KRC826   2.0    3.0    1.0    9.15

       117.0  120.0    3.0    0.94

KRC827  43.0   58.0   15.0    1.27

        62.0   68.0    6.0    2.31

        72.0   77.0    5.0    1.72

KRC828  12.0   21.0    9.0    0.76

        42.0  102.0   60.0    2.68

KRC829   6.0   10.0    4.0    0.92

        12.0   19.0    7.0    6.01

        28.0   31.0    3.0    1.50

        34.0  109.0   75.0    2.40

KRC830  11.0   18.0    7.0    1.07

        30.0   32.0    2.0    1.29

        37.0   39.0    2.0    7.04

        69.0   84.0   15.0    0.74

KRC831  31.0   33.0    2.0    1.29

        63.0   64.0    1.0    8.22

        87.0   97.0   10.0    1.81

       118.0  124.0    6.0    1.33

The northern fence, KRC819 to 825, intersected the same broad zone of mineralization encountered in the southern fence, including 1.08 g/t Au over 34.0 metres in KRC820, 1.56 g/t Au over 15.0 metres in KRC822, 1.35 g/t Au over 21.0 metres and 5.25 g/t Au over 6.0 metres in KRC823, and 1.44 g/t Au over 16.0 metres in KRC824. KRC821 and KRC825 also intersected significant gold mineralization (see table 2).

              Table 2  

          RC DRILL RESULTS FOR 

      KINKINE ZONE -- NORTH FENCE

Hole    From     To    Length  Au

ID       m       m      m      m

KRC819  58.0   59.0    1.0   1.95

KRC820  54.0   57.0    3.0   1.03

        73.0  107.0   34.0   1.08

KRC821  18.0   25.0    7.0   0.79

        50.0   52.0    2.0   1.14

        71.0   81.0   10.0   1.10

KRC822  30.0   32.0    2.0   1.08

        37.0   52.0   15.0   1.56

KRC823   6.0   27.0   21.0   1.35

        41.0   47.0    6.0   5.25

KRC824  37.0   53.0   16.0   1.44

        63.0   68.0    5.0   0.97

        93.0  110.0   17.0   0.63

KRC825  16.0   23.0    7.0   1.38

        44.0   52.0    8.0   0.89

        71.0   73.0    2.0   1.99

        79.0   84.0    5.0   1.29

        99.0  102.0    3.0   1.54

       119.0  126.0    7.0   0.79

Preliminary interpretation of these results suggests that this broad zone of mineralization is related to a fault structure striking east-northeast with a moderate northwest dip. North-trending subsidiary structures also appear to be mineralized. If higher-grade intervals are also related to east-northeast-striking structures, true thicknesses would be in the order of 80 per cent of reported lengths. Updated location map will be posted on the company's website shortly.

Bag Farm zone

The remaining results from the 28-hole, 2,624-metre RC drill program on the Bag Farm zone have been received and mineralized intervals recompiled. Highlights include 3.88 g/t Au over 4.0 metres in KRC809 and 1.53 g/t Au over 6.0 metres in KRC815 (see table 3). Initial results, including 5.17 g/t Au over 8.0 metres in KRC809, were reported in Cassidy Gold's news in Stockwatch dated March 2, 2006.

          Table 3  

RC DRILL RESULTS FOR BAG FARM ZONE 

      (One-metre splits)

Hole    From     To    Length  Au

ID       m       m      m      m

KRC804   21.0   29.0    8.0   0.85

KRC805    7.0   13.0    6.0   0.55

         43.0   48.0    5.0   1.27

         57.0   62.0    5.0   1.13

         69.0   73.0    4.0   0.50

KRC809   84.0   88.0    4.0   3.88

KRC812   22.0   27.0    5.0   0.95

KRC814   50.0   54.0    4.0   1.50

KRC815   61.0   67.0    6.0   1.53

         76.0   79.0    3.0   0.64

         88.0   89.0    1.0   0.57

KRC816   11.0   15.0    4.0   1.80

         66.0   68.0    2.0   0.93

KRC818    0.0    1.0    1.0  21.00

         62.0   64.0    2.0   1.24

RC drilling is stepping to the south of the Junction zone to extend mineralization down toward the Bag Farm zone. Geologically, the Bag Farm and Junction zones are very similar. Both appear to be northeast-trending zones of mineralization, consisting of quartz veining and silicification in fine-grained sedimentary rocks. Junction zone mineralization appears to dip moderately to the southeast.

Koekoe-Sodyanfe air core

A program of 189 air-core holes totalling 6,824 metres was recently completed between the Koekoe and Sodyanfe areas. A number of targets are highlighted in the results from this reconnaissance drilling, including 3.78 g/t Au over 4.0 metres in KRAB592 and 1.88 g/t Au over 32.0 metres in KRAB593, located one kilometre northwest of Sanu Folo (see table 3). Three hundred metres further west, KRAB543 intersected 0.95 g/t Au over the 19 metres drilled and KRAB542 hit 1.14 g/t Au over the top 8.0 metres of the hole. Further drill testing of this target area is planned.

           Table 4  

      AIR-CORE DRILL RESULTS

   FOR BAG FARM-JUNCTION TREND

      (Four-metre splits)

Hole    From     To    Length  Au

ID       m       m      m      m

KRAB483  0.0    4.0    4.0    3.54

KRAB542  0.0    8.0    8.0    1.14

KRAB543  0.0   19.0   19.0    0.95

KRAB556 20.0   34.0   14.0    0.55

KRAB571  4.0   16.0   12.0    0.90

KRAB589 40.0   44.0    4.0    1.12

KRAB590  4.0    8.0    4.0    3.09

KRAB590 56.0   60.0    4.0    0.60

KRAB592 16.0   20.0    4.0    3.78

KRAB593  8.0   40.0   32.0    1.88

KRAB603  8.0   12.0    4.0    3.53

KRAB631 16.0   20.0    4.0    0.96

KRAB632  0.0    4.0    4.0    1.81

KRAB659 12.0   16.0    4.0    0.97

KRAB662 12.0   20.0    8.0    0.70

Exploration program

The RC drill is currently drilling off extensions to the Junction zone. From Junction, the RC drill will move to Manie to test a few air-core anomalies there. In the meantime, Cassidy Gold is planning a significant resource drill program at Kinkine. Resource drilling totalling 3,810 metres is also planned for Sanu Folo to further define and expand the resource picture there.

Diamond drilling has commenced at the Sanu Folo zone. Core holes are planned for Junction-Bag Farm and Kinkine. Holes will also target JJ and Sanu Filanan where required for resource work. Core drilling will be used to assess the structural geology, lithology and alteration, and to collect samples for bulk density determinations and metallurgical testwork.

Air-core drilling was completed in the Kinkine South area to follow up on the intersection of 23.35 g/t Au over 20.0 metres in KRAB416. Air-core drilling has also tested geochemical anomalies between Sodyanfe and Manie (Manie South). Results are expected over the next few weeks. From there, the air-core rig will be sent north to Benegban to test a significant soil geochemical anomaly and artisanal dig site. Preparations are under way to move the air-core rig to Dalaoule and Banjounani in the western portion of the Tambiko permit.

Soil geochemical sampling continues at Karikarissa, 30 kilometres northeast of Sanu Filanan. Soil sampling has been completed on the Tambiko block 2 and has moved immediately south to the Kouroussa South block. Regolith mapping of the prospect areas is continuing.

Sampling and assay procedures

RC and air-core drill samples were collected from the cyclone and split or pipe sampled to one-kilogram size. All samples were sent to the SGS analytical laboratory in Siguiri, Guinea, for fire assay using a 50-gram subsample. Samples assaying greater than five g/t gold are reassayed using a metallics screen technique. Repeat assays are made on every 25th sample, and duplicates and blanks are submitted, one each in every 20 samples. Quality control and quality assurance are closely monitored by RSG Global personnel.

Personnel

Project manager Nick Hewson of RSG Global heads the exploration team in Guinea. Christopher J. Wild, PEng, vice-president, exploration, for Cassidy Gold, is the qualified person for this release.