ANOTHER BIG MOTHER

Cassidy issued its latest good news press release Nov. 4,  2005.

The news, taken together with the map keying in on the Sodyanfe vicinity (map can be accessed on the lower left quadrant of Cassidy’s home page) teaches yet another series of lessons about Cassidy’s properties in Guinea. It tells us that the 4 or 5 “fingers” of mineralization evidenced in earlier drilling coalesce into a widespread, thick “big mother zone”. 

Lesson 1:  Reading from the above cited report and map and looking at the results of earlier drilling of this vicinity there are logical conclusion. The report of follow up drilling resulting in finding, at surface, spectacular volumes of rock with gold at grades that look economical to exploit says this to me:

a.                   It’s not a fluke. Previous work in the area provided the clues for where to look for these added goodies; and,

b.                  Properly interpreted.  The quick homing in on the goodies indicates application of very good geological interpretive skills; and,

c.                   It provides evidence to support my arguments contending that the early and spectacular success shown by initial drilling indicates existence of very extensive resources. Finding gold is not an everyday activity. Just ask the major mining companies which beat each other up in doing takeovers because they can’t find it themselves.

My anticipation of commercially exploitable gold deposits in the Cassidy area is proving ever more correct. I was mesmerized by the glittery zones. I was not anticipating areas with such thick mineralized intervals as Sodyanfe. Zones with 180 foot thickness of paydirt found right from surface will enhance the bottom line economics of exploitation very greatly.

Lesson 2:  Additions to the resource base were calculated by RSG Global. A smaller than expected number of holes was considered acceptably representatively sampled. My understanding is that “lifting” of cuttings was affected by insufficient air volume. To my simple mind, that would mean that the “heavies” i.e. the gold, would be under represented in samples.  But you know… Engineers. Results using only the acceptable samples are reported. Even so the result is impressive. The 30 % increase in resource at a very robust average grade of 2.7 g/t Au speaks again to the higher quality of Cassidy’s accumulations than at the Siguiri mining site to the north. This time no “uncapped” calculation was provided. My simple arithmetic says that Cassidy’s new resource value as now reported by RSG Global is a per share (comparable to the Guinor takeover) value of C$2.60 per share.

Cassidy’s results have hardly gone unnoticed by the Big Boys. For example, recently Gold Fields put a brag piece on its website that says:

“Gold Fields has acquired 85% of the 3 properties comprising Telikan Project, Government of Guinea retains 15% carried interest). Tenure 3 exploration leases totaling 743 km …

The Telikan Project is located in eastern Guinea. Gold Fields has additional activity in

the region with its JV with Afminex on the Mansounia property located approximately

75km to the south. Initial results at Mansounia indicate potential for a typical and

potentially significant Birimian-hosted mineralised system. The Telikan Project sits

in a similar structural environment. The Siguri Basin extends over +90,000 km²

(>45,000km² located in Guinea) and is viewed as one of the more prospective Birimian age

(Late Proterozoic) volcano-sedimentary successions of West Africa. Significant gold

deposits occurring in the Siguri Basin in Guinea include; AnglogoldAshanti’s operating Siguri mine, Guinor’s Lero project and Semafo’s operating Kéniéro mine. The Tamakaya, Telikan and Telikan Sud concessions (Telikan Project) are aligned along the same major basin margin structure (as are the Semafo’s Kéniéro Mine and Cassidy Gold’s Kouroussa project). Regional airborne geophysics indicates the occurrence of suitably oriented fault systems which are

considered important for focusing mineralised fluids. Extensive artisanal workings and reported gold mineralisation (disseminated, stock-work, vein and eluvial) are recorded on the properties.” End quote.

My Worst Fears: I, as a shareholder, suffer the nightmare that there will be an offer to acquire the company for literally peanuts … like $3 bucks per share or so. I am particularly glad that the Cassidy shareholders who hold more than 51% are knowledgeable. I believe they will stand fast in the face of lowball offers. President Gillis has done a great job of making information available to everyone equally, showing no favoritism, no preferential treatment. Key shareholders are aware that the data accumulated points to a stock worth tens of dollars per share. The evidence keeps growing stronger.  An amazing array of opportunities remains untested. The past two year’s history of discovery is truly astounding! The disappointing market action reflects the fact that very few shares are in trader’s hands. Traders willing to capitalize on nickel and dime swings have not discouraged the core shareholders. Obviously though, they do enjoy opportunity to buy added treasury stock at great prices as the evidence for riches continues to grow. Opportunities like the one now pursued in Guinea are extremely rare. I don’t expect to see another in my lifetime.