VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 3, 2012) - Cavan Ventures Inc. ("Cavan" or the "Company") (TSX VENTURE:CVN.V - News) announces that it has signed an agreement to acquire claims located in Quebec. The claims cover approximately 1140 hectares of ground adjacent to the historic Asbury Graphite Mine, the historic minesite area, and a large unexplored mag anomaly identified on Gestim online. The Asbury Graphite Mine area is located approximately 30km south of the TIMCAL graphite mine, one of only two currently producing graphite mines in Canada.
The Asbury Graphite mine had historic production from 1980 to 1988. The following information (file number 31J/04-0016 - The Asbury Mine), was derived from the Quebec Department of Natural Resources website at http://www.mrnf.gouv.qc.ca/mines/industrie/mineraux/mineraux-exploration-graphite.jsp and contains: The discovery of graphite occurred in 1951 with work continuing intermittently over the years. In 1974, Graphex Mines Inc., guided by surface sampling, outlined a bed with graphite content ranging from 20 to 35% carbon. Reserves in 1975 were listed at 300,000 tonnes at 10.0% carbon. The reserve estimates are historical, and a qualified person has not done sufficient work to classify the historical resource estimate as current mineral resources, therefore these historical reserves should not be relied upon, and do not have currently demonstrated economic viability. Historical reserve estimates do not meet the CIM Definition Standards for a Mineral Reserve as referred to in Section 1.2 of the National Instrument 43-101, as they have not been demonstrated by at least a Preliminary Feasibility Study. A full review of all historic data by a qualified person, including quality assessment of results, possibly with additional drilling, would likely be necessary to bring the resource into compliance with National Instrument 43-101.
The ground is located within the Grenville metasedimentary belt of rocks which have hosted several historic graphite mines and numerous graphite occurrences. The general host geology of the Asbury Graphite mine is crystalline limestone/marble, pegmatites and quartzites.
Terms of the acquisition have Cavan making cumulative payments of $75,000 and issuing one million common shares of the Company over 2 years. A 2% NSR will also be issued with the option to purchase back 1% for $1 million. A finder's fee will be payable on this transaction. This transaction is subject to TSX Venture approval.
The technical contents of this release were approved by Marvin Mitchell, P. Eng., a qualified person as defined by National Instrument 43-101.
Cavan Venture's mission is to identify, acquire, and advance high potential mining prospects located in North America for the benefit of its stakeholders. For more information visit the website at www.cavanventures.com.
ON BEHALF OF THE BOARD
Peter P. Swistak, President
Some statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Cavan Ventures Inc. Actual results may differ materially from those currently anticipated in such statements.
Neither the 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.