Cassidy Gold Corp. #635 – 235 First Avenue Kamloops, BC, Canada, V2C 3J4 November 8, 2007 TSXV – CDY
Indicated Resources Increase 38% at Cassidy Gold’s Kouroussa Project
Cassidy Gold Corp. (the “Company”) is pleased to announce updated resource figures for its 100% owned Kouroussa Gold Project in Guinea, West Africa. Indicated resources have increased to 466,000 ounces of gold contained in 6,736,000 tonnes grading 2.2 g/t Au in addition to an Inferred Resource of 477,000 ounces of gold contained in 8,772,000 tonnes grading 1.7 g/t Au. Indicated and Inferred ounces have increased 38% and 31%, respectively, over the September 2006 resource update. Most of the gold resources reported lie within 150 metres of the surface. Table 1 summarizes the Indicated and Inferred resources at Kouroussa estimated using a 0.7 g/t Au cut-off grade and a 3-metre minimum horizontal thickness.
Table 1 Total Indicated and Inferred Resource, Kouroussa Project (0.7 g/t Au cut-off)
RESOURCE AREA INDICATED RESOURCE INFERRED RESOURCE
Tonnage Au g/t Au oz Tonnage Au g/t Au oz
Koekoe Trend 3,432,000 2.7 300,000 6,156,000 1.8 362,000
Kinkine Trend 2,353,000 1.8 136,000 843,000 1.4 39,000
Sodyanfe Trend 950,000 1.0 31,000 1,773,000 1.3 75,000
TOTALS 6,736,000 2.2 466,000 8,772,000 1.7 477,000
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The Koekoe Trend hosts an Indicated resource of 300,000 ounces of gold in 3,432,000 tonnes grading 2.7 g/t Au and an Inferred resource of 362,000 ounces of gold in 6,156,000 tonnes grading 1.8 g/t Au. Within the Koekoe area, the Sanu Filanan deposit increased its total resources to 187,000 Indicated ounces and 242,000 Inferred ounces. The largest increases were noted in KD-1, where the Indicated resource grew 150% to 45,000 ounces and the Inferred resource grew 145% to 58,000 ounces. At JJ, the Indicated resource grew over 50% to 44,000 ounces and at Sanu Folo the Inferred resource grew 31% to 25,000 ounces. A new deposit, the Sanu Filanan North contributed 9,000 ounces of Indicated resource and 17,000 ounces of Inferred resource (see Table 2). All 5 deposits have significant potential to increase with additional resource drilling.
Table 2 Indicated and Inferred Resources, Koekoe Trend (0.7 g/t Au cut-off)
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DEPOSITS INDICATED RESOURCE INFERRED RESOURCE
Tonnage Au g/t Au oz Tonnage Au g/t Au oz
Sanu Filanan 1,840,000 3.2 187,000 3,750,000 2.0 242,000
KD-1 712,000 1.9 45,000 1,226,000 1.5 58,000
JJ 446,000 3.0 44,000 334,000 1.9 20,000
Sanu Folo 181,000 2.6 15,000 497,000 1.6 25,000
Sanu Filanan North 253,000 1.1 9,000 349,000 1.5 17,000
Koekoe Trend 3,432,000 2.7 300,000 6,156,000 1.8 362,000
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Kinkine, located 4 kilometres north of Koekoe, saw an increase of almost 53% in contained Indicated ounces and an 11% increase in Inferred ounces as a result of targeted resource drilling in 2007 (see Table 3). As expected, the average grade decreased between 5% and 7% as the drilling focussed on the slightly lower grade margins of the deposit. As is the case at Koekoe, most of the mineralization is hosted within a gabbro plug emplaced along a regional northeast trending fault, the Kinkine Fault. Planned regional exploration will target this fault zone.
Table 3 Indicated and Inferred Resources, Kinkine Trend (0.7 g/t Au cut-off)
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DEPOSITS INDICATED RESOURCE INFERRED RESOURCE
Tonnage Au g/t Au oz Tonnage Au g/t Au oz
Kinkine 2,353,000 1.8 136,000 843,000 1.4 39,000
Kinkine Trend 2,353,000 1.8 136,000 843,000 1.4 39,000
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On the Sodyanfe Trend, 2 kilometres west of Koekoe, resource drilling stepped southwest along the Junction zone extension increasing the Indicated and Inferred resources by 47% and 53%, respectively (see Table 4). Mineralization is open to the northeast, southwest toward Bag Farm, and down dip. Unlike Koekoe and Kinkine, Sodyanfe is largely hosted in mudstones along the eastern flank of a series of mafic volcanic rocks known as the Niandan Chain. The north-trending X Vein is hosted within pillowed flows. Further exploration will focus on targets further to the northeast, between Junction and Bag Farm, and southwest of Bag Farm. More work remains to be done along the eastern flank of the Niandan volcanics.
Table 4 Indicated and Inferred Resources, Sodyanfe Trend (0.7 g/t Au cut-off)
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DEPOSITS INDICATED RESOURCE INFERRED RESOURCE
Tonnage Au g/t Au oz Tonnage Au g/t Au oz
Junction 658,000 1.1 22,000 1,377,000 1.1 49,000
Bag Farm 292,000 0.9 9,000 151,000 1.5 7,000
X Vein 245,000 2.4 19,000
Sodyanfe Trend 950,000 1.0 31,000 1,773,000 1.3 75,000
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Coffey Mining, following the completion of a merger with RSG Global Consulting, has validated and interpreted the data, constructed wire frames, completed 3-dimensional block models, and estimated resources for each of the mineralized zones using an Ordinary Krige technique. Resource estimates were prepared and reported in accordance with Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects and the classifications adopted by CIM Council in December 2005. Metallurgical testwork completed by SGS Lakefield Research in February 2007, confirmed excellent recoveries from composite samples collected from the Koekoe Trend and the Kinkine Trend. One oxide and one sulphide sample from each deposit area underwent a series of tests with the four samples averaging 96.8% recovery by whole ore cyanidation, 60.8% by gravity methods, and 97.7% by gravity and cyanide leach of the tail with regrind. Process design is underway based on these and additional metallurgical testwork. Metallurgical testwork completed by AMMTEC in December 2006 reported that four of five samples submitted for testwork from the Junction deposit were highly refractory in nature due to the presence of preg-robbing carbon. The consequence of this would be significantly reduced recovery from this deposit.
The previous resource statement, completed in September 2006, outlined an Indicated resource of 338,000 ounces of gold and an Inferred resource of 365,000 ounces of gold in the Koekoe, Kinkine, and Sodyanfe areas. Progress in the latter half of 2006 and first half of 2007 was hampered by a degree of social and political unrest in Guinea. A general strike and the imposition of Martial Law in February forced the Company to withdraw its exploration crews for over one month. Additional labour disruptions at the SGS laboratory in Siguiri resulted in lengthy turnarounds for sample assays. Those delays hindered planning additional drilling that relied on those results. However, the political situation in Guinea has stabilized with the appointment of a new government. Cassidy is gearing up for the next phase of resource and exploratory drilling, to commence later this month. The program will consist of 10,000 metres of RC drilling and 1000 metres of diamond drilling, and will focus on extending the KD-1, JJ, and Sanu Filanan North deposits along strike to the northwest and to depth. Spectrem Air Limited has been contracted to complete an airborne EM survey over the all the Kouroussa concessions. Coffey Mining will once again be managing the exploration program on behalf of the Company.
Christopher J. Wild, P.Eng, V.P. Exploration, is the Qualified Person, and has reviewed results, sampling procedures, and data contained in this release. For more information, please visit the Company’s website at www.cassidygold.com. On behalf of the Board of Directors Cassidy Gold Corp. James T. Gillis
James T. Gillis, President & CEO
For further information please contact: Jim Gillis, President – Phone: 250-372-8222 or Fax: 250-828-2269
This press release may be accessed at Cassidy Gold Corp.’s website: www.cassidygold.com and at SEDAR-CDY
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