Cadillac Ventures (CVE:CDC) said Wednesday it has started an updated mineral resource estimate for its K1-1 deposit, following the receipt of results from 26 drill holes recently completed at the site.
The K1-1 project is located roughly three kilometres to the east of the company's Thierry Mine project in northwestern Ontario, both being within the boundaries of the 11,538 acre Thierry property, occupying only a small portion of the asset.
In late 2011, the company released an initial inferred mineral resource estimate for K1-1 within a Whittle pit shell consisting of 19.89 million tonnes grading 0.10% nickel, 0.42% copper, 2.0 g/t silver, 0.03 g/t gold, 0.05 g/t platinum, 0.15 g/t palladium.
Cadillac also said an exploration target for K1-1 located outside and below the resource pit shell was estimated to contain between 45 to 55 million tonnes grading between 0.08 and 0.12% nickel, and 0.32 to 0.36% copper. But there was not enough "modern data" for the target to complete resource modeling, the company said.
The initial inferred resource reflected the first 16 exploration holes drilled by Cadillac, as well as limited historic data and other exploration carried out on the property.
Within the inferred resource, the company said there were gaps in data, "due simply to lack of drilling to model, which affect the behaviour of the pit, and therefore constrained the resource".
As a result, a 26 hole drill program was designed to address gaps within the pit shell area at K1-1, as well as test for extensions along strike and at depth.
The drilling campaign was also designed to intersect and upgrade mineralization from the exploration target category into the resource statement, and if successful, adding tonnage to both categories using infill drilling.
Cadillac said that including the drill results from the 26 holes in the re-calculation of the resource is expected to boost the estimate by extending the modeled mineralization.
Highlights of these assays included 110 feet of 0.626% copper and 87.5 feet of 0.546% copper.
During the drilling program, there was a total of 20,868 feet drilled over the 26 holes, and a total of 2,590 samples taken.
Cadillac said the update of the K1-1 resource estimate will affect a future production decision at Thierry, as the close proximity of the deposits to each other is expected to result in cost efficiencies - due to the sharing of the infrastructure and processing plant capacity.
"Sharing of facilities between the deposits should enable Cadillac to realize lower production costs, and therefore process material of a lower grade than would be envisioned based upon either deposit operating independently of the other," the company said in a statement.
Cadillac is a development-focused copper company currently advancing its 100 percent-owned Thierry property, near Pickle Lake, Ontario, which consists of the past-producing Thierry Mine and hosts two NI 43-101 compliant resources from the Thierry Mine and K1-1.
The Thierry Mine deposit has a current resource estimate consisting of 8.3 million tonnes measured and indicated grading 1.73% copper and 0.20% nickel, as well as 14.6 million tonnes inferred grading 1.70% copper and 0.16% nickel. The deposit remains open at depth and to the west.Meanwhile, the K1-1 deposit is a potentially open-pit, large tonnage, low grade deposit located approximately three kilometres from the Thierry Mine.