Cadillac Mines drills 23 metres in Ontario, gold resource set to grow

en.Wedoany.com Reported - Shares of Canadian developer Cadillac Mines (TSX: CADY) rose after new drill intersections at the past-producing Kerr-Addison property in Ontario, with results that could open the door to a larger open-pit gold resource. The company released assay results from multiple holes in a statement late Wednesday.

Highlight hole KAD26-428T intersected approximately 23 metres grading 3.08 grams per tonne gold from 259 metres downhole, including 6.4 metres grading 5.26 grams per tonne gold from 260 metres; hole KAD26-397 intersected 38 metres grading 2.13 grams per tonne gold from 192 metres downhole.

The Toronto-based company has completed nearly two-thirds of a planned 17,850-metre infill drilling program at the Kerr-Addison open-pit resource. The latest release includes assay results from the first 29 infill diamond drill holes.

Desjardins Securities mining analyst Bryce Adams said in a report Thursday that, ahead of a preliminary economic assessment scheduled for the third quarter of next year, the bank views the results positively as they demonstrate continuity within the open-pit shell and mineralization extending beyond current boundaries, supporting potential resource conversion, expansion, and grade upgrades.

During Thursday morning trading in Toronto, Cadillac shares rose 2.3% to C$8, valuing the company at approximately C$2.2 billion (US$1.5 billion). Over the past year, the stock has traded between C$6.90 and C$10.01.

Franco-Nevada (TSX, NYSE: FNV) co-founder Pierre Lassonde, in addition to serving as Cadillac's chairman, is also one of the company's largest shareholders with a 14% stake; Franco-Nevada holds 2%, and Pan American Silver (TSX, NYSE: PAAS) holds 6%.

Kerr-Addison is Cadillac's flagship project, located 40 kilometres east of Kirkland Lake, Ontario. The project sits on the prolific Cadillac-Larder Lake fault within the Abitibi greenstone belt, which has produced more than 200 million ounces of gold over the past century. Cadillac, formerly Gold Candle, holds one of the largest land packages in the greenstone belt, with a strike length of approximately 40 kilometres.

Other notable intersections released by Cadillac include: hole KAD25-386 intersected 13 metres grading 1.52 grams per tonne gold from 62 metres downhole; and hole KAD26-476 intersected 9.2 metres grading 1.94 grams per tonne gold from 66 metres downhole. The company is targeting several under-drilled hanging wall zones within the Kerr-Addison open pit, structures that have historically received less attention than the main fault, which has contributed over 10 million ounces of historical production.

Chief executive officer Rick Howes said these initial drill results continue to highlight a significant opportunity to add more high-quality mineral resources within the Kerr pit. The company will continue its 2026 drill optimization program at Kerr, targeting new zones and better delineating known hanging wall structures within the pit, while targeting additional ounces and mineralization in an expansion program immediately northeast of the known resource block.

Cadillac plans to complete its current infill drilling program by mid-September, with 11 diamond drill rigs currently operating on the property, most focused on infill and expansion drilling at Kerr-Addison. Management has budgeted approximately C$65 million for exploration this year, planning to drill about 145,000 metres across its portfolio, including the Larder and Galloway properties.

Based on February 2026 resource data, Kerr-Addison hosts 78.5 million tonnes of indicated resources grading 1.34 grams per tonne gold, containing 3.38 million ounces; plus 25.9 million tonnes grading 2.66 grams per tonne gold, containing 2.21 million ounces.