Cassidy cuts 8.49 gpt Au over 27 m on Sanu Folo zone

2006-07-06 14:15 ET - News Release

Mr. James Gillis reports

CASSIDY GOLD CORP.: 27 METRES AT 8.49 G/T AU AT SANU FOLO, KOUROUSSA GOLD PROJECT, GUINEA

Cassidy Gold Corp. has provided results from continuing reverse circulation (RC) on its 100-per-cent-owned Kouroussa project, located in Guinea, West Africa. A series of 19 RC holes totalling 1,818 metres continue to define mineralization at Sanu Folo at nominal 40-metre drill spacing. Highlights include 6.04 grams per tonne (g/t) gold (Au) over 6.0 metres and 8.49 g/t Au over 27.0 metres in KRC922, 14.46 g/t Au over 4.0 metres in KRC932 and 5.13 g/t Au over 9.0 metres in KRC933. True thicknesses are estimated to be approximately 65 per cent of the reported sample lengths.

Sanu Folo

RC drilling at Sanu Folo during May and June focused on extending mineralization to the west of previous drilling (see Cassidy Gold news release in Stockwatch dated April 27, 2006). Sanu Folo consists of a series of subparallel, east-west-trending, near-surface, gold-bearing quartz veins and silicified zones. RC holes were arranged on north-south fences spaced 40 metres apart, near the area of convergence between the Sanu Folo and Sanu Filanan structures.

Mineralization at Sanu Folo remains open to the west. KRC922 intersected two intervals of 6.04 g/t Au over 6.0 metres and 8.49 g/t Au over 27.0 metres, while KRC921 intersected 3.86 g/t Au over 9.0 metres on the same section. That mineralization may be trending somewhat to the north of the westernmost fence of holes (KRC937 -- 939). Forty metres east of KRC922, KRC924 intersected 20.97 g/t Au over 2.0 metres and KRC926 hit 1.09 g/t Au over 4.0 metres. Eighty metres further east, KRC930 intersected 6.31 g/t Au over 3.0 metres and KRC932 hit 14.46 g/t Au over 4.0 metres. Stepping another 40 metres east, KRC933 intersected 5.13 g/t Au over 9.0 metres. Another 40 metres to the northeast, KRC934 intersected 1.48 g/t Au over 4.0 metres.

TABLE 1 SANU FOLO ZONE - RC DRILL ASSAY RESULTS

Hole ID  From (m)   To (m)  Length (m)  Au (g/t)

KRC921      60.0     69.0         9.0      3.86

            82.0     83.0         1.0     10.20

KRC922      44.0     50.0         6.0      6.04

            60.0     87.0        27.0      8.49

KRC923       6.0     15.0         9.0      0.59

KRC924      29.0     32.0         3.0      1.24

            55.0     57.0         2.0     20.97

KRC925      34.0     35.0         1.0     14.10

            76.0     79.0         3.0      2.49

KRC926      11.0     15.0         4.0      1.09

            30.0     39.0         9.0      0.51

KRC927      33.0     35.0         2.0      0.85

KRC928      62.0     65.0         3.0      0.95

KRC929      18.0     19.0         1.0     18.50

KRC930      19.0     22.0         3.0      6.31

            49.0     50.0         1.0      5.16

KRC931      38.0     39.0         1.0      1.45

            44.0     45.0         1.0      3.76

            49.0     50.0         1.0      1.10

            54.0     55.0         1.0      6.26

            60.0     61.0         1.0      3.04

KRC932      15.0     16.0         1.0     27.70

            70.0     74.0         4.0     14.46

KRC933      36.0     45.0         9.0      5.13

KRC934      77.0     79.0         2.0      1.25

KRC935      35.0     46.0        11.0      0.60

KRC936       3.0      4.0         1.0     32.20

            70.0     74.0         4.0      1.48

KRC937      87.0     89.0         2.0      3.31

           160.0    166.0         6.0      1.13

           177.0    180.0         3.0      3.28

KRC938      94.0     95.0         1.0      2.33

KRC939      23.0     26.0         3.0      0.53

KRC937 was drilled down a zone of deep oxidation, intersecting a new zone of mineralization that appears to be part of the Sanu Filanan extension. The hole bottomed in mineralization after using all available drill rods. The area where the Sanu Filanan and Sanu Folo structures converge remains a high priority target.

Drilling has now moved to KD-1, east of Sanu Folo, with the aim of better defining significant mineralization encountered in previous drilling campaigns. Additional drilling to the west of Sanu Folo is planned for the next phase of drilling.

Exploration program

Prior to moving to KD-1, the RC drill completed a 23-hole, 3,080-metre step-out and resource definition program at Kinkine. In addition, the aircore rig continued to test south of Kinkine after completing an extensive program at Dalaoule and Banjounani, in the northwest quadrant of the property. Results will be released in the coming weeks. RC drilling will continue at KD-1 until mid-July, when exploration will be suspended for the remainder of the wet season, resuming toward the end of September. The current campaign of aircore drilling has just been completed. During the shutdown period, geological modelling and resource estimation studies are planned.

Sampling and assay procedures

RC 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/quality assurance is 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.