NEWS: Cache Exploration Update on Long Lake Property in New Brunswick
July 21, 2010 — VANCOUVER, BC (Source: CacheExploration.com) -– CACHE EXPLORATION INC. (TSX-V: CAY) is pleased to provide additional information on the 160 claim Long Lake Property under option in northern New Brunswick (June 28, 2010 news release). Arthur Hamilton, P.Geo. is a Qualified Person as described in National Instrument 43-101 and is responsible for the technical information contained in this news release.
Cache may earn a 100% interest if it issues the vendors 250,000 common shares over 3 years, incurs $250,000 of exploration expenditures over 3 years, and makes property option payments of $50,000 over 3 years. The property vendors will retain a 2.5% NSR of which Cache has the right to purchase 1% for $1,000,000. The initial $10,000 option payment has been paid and the 50,000 shares due within 60 days have been issued. The only remaining obligation until April 30, 2011 is for Cache to incur $50,000 in exploration expenditures which is included in our Phase I program described below.
Cache has received a New Brunswick Junior Mining Assistance Program (NBJMAP) grant of $45,000 or 50% of eligible costs up to $90,000 for the Long Lake Property. The NBJMAP program is a financial assistance program for junior companies, and provides up to 50% of eligible costs for mineral exploration programs to a maximum of $50,000. The NBJMAP provides valuable assistance which increases the probability of finding economically viable mineral resources in New Brunswick.
The following information is based on a review of historical records and is not compliant to National Policy 43-101 reporting. Investors are cautioned that these are historic in nature and are disclosed for reference only and that individual prospect descriptions vary among different publications and deposit/prospect descriptions vary significantly between various historical sources.
Canadian Occidental Petroleum did some of most significant work in the area; however, they abandoned their New Brunswick properties in the early 1980’s. Historical samples from diamond drilling, mostly by Canadian Occidental near Long Lake, have returned values of up to 40,000 ppm Cu over 0.3m, 25,000 ppm Pb over 0.09m, 153,000 ppm Zn over 0.3 m, 86 ppm Ag over 0.3 m, 44 ppm Cd over 0.53 m, 134 ppm In over 0.3m and 96 ppm Sb over 1.3m. Historical trench and float samples have returned grades up to 12% Mo, 3,000 ppb Au, 8,095 ppm As and 1,980 ppm Bi. A float sample found on the west side of Long Lake in 2006 ran 160 ppm Ag, 6.53% Cu, 87.3 ppm In, 1.61% W and 862 ppm Bi. Significant float occurrences on the Long Lake claim group are shown in Fig. 2. Since the last report submitted by Canadian Occidental in 1982, only limited work by CEGB was reported in 1987 on the current Long Lake property until it was staked by the current title holders in 2006.
Strong and widespread silver and lead soil anomalies on the east side of Long Lake, as outlined by 4 ppm Ag and 200 ppm Pb contour lines, have not been adequately explained by historical work. In 2008, a geochemical survey was carried out on the east side of the Long Lake property using a Pionjar to collect till samples at depth. Samples were taken at 100 meter intervals along lines spaced 400 meters apart. The survey outlined strong anomalies with values up to 771 ppm Pb, 1,830 ppm Zn, 635 ppm Cu, 24.5 ppm Ag, 120 ppb Au, 143 ppm Sb, 2,030 ppm As, 164 ppm Mo, and 40 ppm W. In 2006, a gradient array IP survey was carried out on L-0 to L-800N and dipole-dipole IP was also done on L-300N.
In 2008, a dipole-dipole IP survey was carried out on L-1000N to L-2000N. Many of the till anomalies are coincident with IP chargeability and/or resistivity anomalies that, for the most part, remain untested.
Intrusion-related breccia and/or vein mineralization has been identified at a number of locations in the region. Historical work has identified a northwest trending structural control on mineralization in the area and a north-south structural trend may be locally important. Mineralized structures tend to be steeply dipping.
The proposed initial Phase I work program for Long Lake for 2010 consists of:
•Diamond drilling 1,050 m $90,000
•Till survey $ 1,000
•IP surveying $ 4,000
Diamond drill collars and trench locations from historical work and proposed diamond drill holes are shown in Fig. 3 and 4. Proposed holes are also shown on IP pseudo sections in Fig. 5 and 6. Bubble plots showing anomalous metals identified in the 2008 till survey are shown in Fig. 7 – 15.
Moderate to strong chargeability and low to moderately low resistivity readings are almost continuous from about 500E to the east end (i.e. 1200E) of L-1800N (Fig. 3, 4 & 5). Historical diamond drill hole 80-2 is located approximately on L-1800N at about 900E and was drilled to a depth of 88 meters at -45º dip and bearing of 195º. Alteration and mineralization was reported in the hole that included 0.14% Pb and 11.4 g/t Ag over 0.5 ft. However, it was noted that the upper part of the hole (above about 25 meters) “appeared the most fractured; it was also heavily limonitized with many leached quartz vugs present, suggesting that this section was at one time sulphide-rich”. Till geochemical anomalies associated with this section of anomalous IP include up to 205 ppm Pb, 450 ppm Zn, 635ppm Cu. 4.0 ppm Ag, 76.5 ppm Sb, 2,030 ppm As, 164 ppm Mo and 29 ppm W. The extensive chargeability and resistivity anomalies on L-1800N and adjacent lines may be due to multiple sheeted layers. Drill hole 80-2 would have only tested about 50 meters across the IP anomaly that extends across more than 500 meters along L-1800N. Two holes of approximately 300 meters each are recommended to test anomalous IP and till geochemistry along L-1800N (Fig. 1&2).
Anomalous values of Cu-Pb-Zn-W coincide with chargeability and resistivity anomalies at about 400E to 500E on L-1400N. One hole of 250 meters is proposed to test this anomaly.
Strongly anomalous values including up to 24.5 ppm Ag, 326 ppm As, 143 ppm Sb, 371 ppm Cu, 336 ppm Pb and 1260 ppm Zn were identified in till samples from 800E to 1000E on L-800N. This line was surveyed by a gradient array IP that identified a strong resistivity anomaly but no significant chargeability anomaly. In order to better define this anomaly, dipole-dipole IP is recommended to be carried out on L-800N and adjacent lines and several till more samples should also be taken with a Pionjar in this area. One drill hole of 200 meters is proposed to test this target.
Cache Exploration is a well funded company with a focus on exploring for REE deposits. Cache is exploring the Welsford REE Properties in New Brunswick, the Cross Hills REE Property in Newfoundland which is adjacent to the Rockbridge Resources REE Property and the Louil Hills REE Property in Newfoundland. All four Cache REE properties have proximity to available infrastructure and are considered to have excellent potential for rare earth mineralization.
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