SEATTLE, August 6, 2003 (PRIMEZONE) -- Cascade Mountain Mining Company, Inc. -- (OTCBB:CSCA), a mining and exploration corporation, announced today that it has signed a Letter of Intent with Red Lake Resources to acquire 50% stakes in Keg Lake Property and the Starratt Channel Project located in Ontario, Canada. The letter of intent was executed by both parties on August 3, 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 Keg Lake Project consists of 43 claims spanning approximately 1,720 acres. The property is located in Byshe Township, 10 km south of the Campbell and Goldcorp Red Lake mines. The only previous work in the area was preformed by First Point Minerals in 1997, which carried out a lake sediment geochemical survey that revealed unusually high gold values in a bay on the north side of the property.
The Starratt Channel Project consists of 32 claims spanning approximately 1,280 acres in Byshe Township, adjacent to the Keg Lake Project. The property was previously worked in 1997 by First Point Minerals, which carried out a lake and stream sediment geochemical survey that revealed high gold values around the property
According to Cascade Mining Chief Geologist Michael Skopos, "The Keg Lake Project is estimated to contain a reserve of 60,000 ounces of gold and the Starratt Channel Project is estimated to contain a reserve 80,000 ounces of gold, for a combined gold reserve of approximately $49 million."
Cascade's 50% stakes in the Keg Lake Project and the Starratt Channel could potentially return in excess of $24 million of revenue over a three-year period.
Under the terms of the LOI, the proposed exploration programs will consist of a first phase of prospectus, mapping and reconnaissance MMI geochemical surveys. Assuming that this detailed work is successful in identifying drill targets, it will be followed by a winter drill program.
Commenting on the LOI for the Keg Lake Project and the Starratt Channel Project, Cascade Mountain Mining's President, Wayne Daley, stated, "This acquisition has the potential to add significant revenue to our Company in the coming years. We are very pleased with our current relationship with Red Lake Resources and look forward working with them on these projects in the future."
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 Mountian 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.