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Message: Cascade to Acquire Advanced Gold-Copper Project in the Philippines


FSC / Press Release

Cascade to Acquire Advanced Gold-Copper Project in the Philippines

Vancouver, British Columbia CANADA, May 03, 2011 /FSC/ - Cascade Resources Ltd. (CC - TSX Venture), ("Cascade" or "the Company") announces that it has entered into agreements to acquire the Nalesbitan gold-copper project, which combines a shallow epithermal gold deposit, with a large copper-gold porphyry target at depth. The acquisition includes:

i. an 80% economic interest (with an option to acquire the remaining 20% economic interest) in the Nalesbitan gold-copper project ("the Project") located in the Municipality of Labo, Camarines Norte Province on the Bicol Peninsula, south-eastern Luzon, in The Republic of Philippines, and

ii. 100% of the ore processing arrangements ("Processing") that are applicable to certain operations in the Philippines, the Nalesbitan Project being one such operation. The transactions are subject to the finalization of due diligence, definitive documentation, compliance with Philippine statutory requirements and regulatory approval.

The gold deposit at Nalesbitan has a well-defined core of Measured, Indicated and Inferred Resources, combined with numerous advanced exploration targets nearby. The related copper-gold porphyry mineralisation at depth is at an earlier stage, but provides an attractive bulk-tonnage target for the Company.


The Project

Upon closing, Cascade will acquire an 80% economic interest by:

- Funding $1,000,000 of development capital,

- Issuing 16,666,667 shares at 30 cents per share (Cdn$5,000,000)

Cascade has an Option to acquire the remaining 20% economic interest by:

- Spending Cdn$2,000,000 in direct project costs within three years;,

- Obtaining an independent estimate of the Project's Net Present Value (NPV) and issuing shares at the then market price equivalent to 20% of the NPV subject to a minimum value of Cdn$5,000,000.

Until such time as Cascade acquires the balance it does not already own, the remaining 20% interest will be free carried.


Upon closing, Cascade will acquire 100% of a company holding all ore processing rights to the Project by issuing a further 16,666,666 shares at 30 cents per share ($5,000,000).


At closing the Board will continue to be controlled by the four current directors.

Upon closing, Mr. Timothy E. Collver will be appointed as a Director, President and Chief Operating Officer of the Company. Mr. Collver has over 33 years of professional experience in the natural resource and banking industries working throughout North America, Australia and the South East Asian-Pacific region as both a geologist and investment banker/advisor. Mr. Collver holds a Bachelor of Arts with Double Honours from McMaster University. He is a Member of Australasian Institute of Mining & Metallurgy and an Associate Member of the Australian Institute of Bankers. Mr. Collver has worked as a geologist throughout Canada with resource companies such as Noranda, AGIP and Cominco, developing skills in minerals exploration, logistics and budgeting for project developments. In 1987 he joined Westpac Bank in the Project Finance and Corporate Advisory (M&A) department and, in 1990, became an Associate Director. Mr. Collver has originated, structured, documented and syndicated acquisitions, capital raisings and minerals exploration throughout Australasia and the Pacific regions and is an internationally recognized resource consultant and investment banker.


The Property is composed of 14 mining claims that cover 1,134 hectares. It displays two attractive elements:

* A surface epithermal gold system that was previously mined and,

* An associated, deeper copper-gold porphyry target.

The main area of surface gold-silver mineralization identified to date (representing approximately 15% of the Project area) is referred to as the Nalesbitan Hill Gold Deposit. This zone of gold mineralization is approximately 1,300 metres long, up to 150 m wide and extending to a depth of at least of 125 m below surface.

As part of its due diligence, Cascade has recently commissioned and completed a NI:43-101 compliant report with a definitive Mineral Resource summarised in Tables 1 and 2 below, which has been estimated by Simon Gatehouse of Hellman & Schofield, who is an Independent Qualified Person in the meaning of NI:43- 101. Crystal Sun Consulting (D.Cox, Mining Engineer) has conducted a preliminary assessment of these resource estimates and has advised that, assuming a gold price of $US950 per troy ounce, reporting of resources above a cutoff grade of 0.5g/t Au is appropriate. This is based on open-pit mining and processing scenarios related to stacked heaps and cyanide leach gold recovery. Also, a cut-off of 0.9g/t Au is an appropriate reporting cut-off for grinding and milling followed by carbon in leach-carbon in pulp recovery methods.

Table 1 - Nalesbitan Measured & Indicated Resources, 7 March 2011

Cutoff Measured Indicated Measured & Indicated
Grade M tonnes Au g/t M tonnes Au g/t M tonnes Au g/t M ozs Au
(g/t) Au
0.5 2.1 1.2 1.7 1.0 3.8 1.1 0.13
0.7 1.4 1.5 0.93 1.4 2.3 1.4 0.10
1.0 0.91 1.8 0.59 1.6 1.5 1.7 0.08


Table 2 - Nalesbitan Inferred Resources, 7 March 2011


Cutoff Inferred Resources
Grade M tonnes Au g/t M ozs Au
(g/t Au)
0.5 1.30 1.0 0.04
0.7 0.65 1.5 0.03
1.0 0.39 1.9 0.02



A number of strike extension targets have been identified outside the Nalesbitan Hill Gold Deposit, each with extensive surface expressions. An eight-hole (diamond core) drilling program on one target (located approximately 500 metres from the Nalesbitan Hill Gold Deposit) delineated mineralization comprising banded epithermal quartz veins. The assay results included 8 metres at 6.6 g/t gold and 16g/t silver from 61 metres down hole, 4 metres at 3.2 g/t gold and 8 g/t silver from 43 metres, and 3 metres at 10.8 g/t gold and 5.1 g/t silver from 87 metres.

Another of the extension targets has been drill-tested with 4 holes and the results suggest the prospect has depth potential and may consist of stacked lodes.


The near surface deposits, delineated to date, are classified as epithermal high-sulphidation gold-silver-copper mineralization, which quite commonly lies above an associated, buried, copper-gold porphyry intrusive. Historical geochemical analyses support the findings contained in published work by a number of internationally recognized porphyry specialists, suggesting that the epithermal mineralization at Nalesbitan is associated with a buried porphyry copper / gold system.


Equipped with well-developed geological models, Cascade will be exploring Nalesbitan with the complementary objectives of finding:

(a) additional near surface mineable resources, and

(b) the source porphyry and any related deeper mineralization.

The work is designed to upgrade the resources, in quantity and reporting classification.

Mr. Russell-Jones, President of Cascade Resources, commented:

"This acquisition represents a major step forward for Cascade as we build a project portfolio with strong expansion characteristics. The Project is at an accelerated stage with clearly defined advancement milestones identified. Increasing the quantity of gold resources will be an early task. The discovery of a large porphyry copper-gold system, which is postulated by a number of leading international geologists and indicated by geophysical surveys to underlay the Project, is also an obvious goal.

By acquiring this Project, Cascade also obtains an experienced management team that is well equipped to rapidly achieve the advancement milestones. This is a technically robust and world class exploration project, with substantial upside potential on a number of fronts, and we look forward to working with the Philippine management team to greatly enhance its potential and value. This Project will give Cascade a presence in the Asia-Pacific region and thereby access to additional growth opportunities."

Cascade Resources Inc. is a mineral exploration company. Mr. David DuPre, a director of Cascade, is a Qualified Person under the guidelines of National Instrument 43-101 and has reviewed and approved the geological information contained in this news release.

On behalf of the Board of Directors;

"Peter Russell-Jones"


For further information please contact:

Garry Stock

Telephone: (604) 683-8236

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cascade Resources Ltd.

Suite 1680

200 Burrard Street

Vancouver, BC

Canada V6C 3L6

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