SEATTLE, Aug. 5, 2003 (PRIMEZONE) -- Cascade Mountain Mining Company, Inc. (OTCBB:CSCA), a mining and exploration corporation, announced today that it has signed a Letter of Intent to acquire a 50% stake in Red Lake Resources' Horseshoe Island Property. The letter of intent was executed by both parties on August 1, 2003. According to the terms of the LOI, Cascade will be responsible for committing $500,000 in exploration financing as well as providing geological and drilling consultation services. It is anticipated that the agreement will be finalized within 7 days.
The Horseshoe Island Property consists of 88 claims spanning approximately 3,520 acres. The property is located 105 km northeast of Red Lake, in the Birch Lake Greenstone belt. Gold was originally discovered in 1935, and since then the property has been explored at various times by several companies including Leitch Gold Mines, Sudbury Contact Mines, St. Joe Exploration, Bond Gold Canada, Noranda, Freewest and Wolfden Resources.
According to Cascade Mining Chief Geologist Michael Skopos, "The Horseshoe Island Gold zone, located at the south end of the Horseshoe Island intrusion, is estimated to contain a reserve of 18,000 tonnes containing 120,000 ounces of Gold or approximately $42 million of reserve."
Cascade's 50% stake in the Horseshoe Island property could potentially return in excess of $20 million of revenue over a three-year period.
Under the terms of the LOI the proposed program will consist of a first phase of detailed surface work in an area 2,000 meters by 1,200 meters around the north edge of the Horseshoe Island intrusion. It will consist of 42 km of line cutting, detailed prospecting and geological mapping, infill geochemical sampling, and possibly manual and hydraulic stripping. A rough estimate of the required budget is $65,000 to $75,000. Assuming drilling targets are defined, a winter drill program will be required, for which a reasonable projection would be 1,000 meters of drilling at a cost of $150,000 to $200,000 depending on weather and ice conditions.
Commenting on the LOI for the Horseshoe Island property, Cascade Mountain Mining's President, Wayne Daley, stated, "This acquisition will be extremely beneficial for Cascade as it will further diversify our gold exploration projects without requiring additional management resources, thus maintaining low operational expenses."
Red Lake Resources Ltd., www.redlakeresources.com, is a mineral exploration company focusing on acquiring and exploring gold properties in northwestern Ontario. The Company currently has six properties in the Birch-Uchi area and one property in the Red Lake area. All properties have been selected on the basis of promising stratigraphy and structure, documented alteration, and proximity to historical gold occurrences. The Red Lake-Birch Uchi greenstone belts have produced over 20 million ounces of gold over the past 100 years.
About Cascade Mountain Mining Company
Cascade Mountain Mining, www.Cascade-Mining.com, owns 31 mining claims, which encompasses the Mazama Project. The Company is in the process of confirming previous exploration work that was started in 1963 by Bear Creek Mining (the exploration division of Kennecott), Brenda Mines (Moranda), Exxon Minerals, and others. Cascade was formed in 2002 to develop these and other reserves. The company intends to concentrate entirely solely on claims that become available that have been "worked." This means the claims have known ore reserves where data is available on test borings and analysis which shows that a mining operation is marginally profitable or close to breakeven, given the mining techniques and commodity price of the metals extracted at the time. Cascade Mountain will re-evaluate such analysis, typically by adding more testing and by "upgrading" the ore-to-waste ration. This is done by employing the newest mining technology, employing state-of-the-art 3-dimensional computer modeling and targeting the enriched areas of a group of claims.
The statements contained in this news release that are not historical facts may be statements regarding the Company's future that involve risks and uncertainties which could cause actual results to differ materially from those currently anticipated. For example, statements that describe the Company's hopes, plans, objectives, goals, intentions or expectations are all forward looking statements. Any such statements made herein about the Company's future are only made as of the date of this news release. Numerous factors, many of which are beyond the Company's control, may affect actual results. The Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.