Cayden Resources, Guerrero Exploration highlighted as ones to watch, says Euro Pacific Canada

Junior explorers Cayden Resources (CVE:CYD) and Guerrero Exploration (CVE:GEX) were highlighted Monday in a research report from Euro Pacific Canada about the Guerrero Gold Belt (GGB) in Mexico.
Both companies are active in Mexico's GGB, an emerging mining district in southern Mexico that is is associated with a series of magnetic anomalies along a 55 kilometre northwest-trending strike length.

In its research report, Euro Pacific Canada said that Cayden's advanced Morelos Sur Gold project consists of five main targets, which were previously owned and drilled by Grupo Mexico and surround Goldcorp’s (TSE:G)(NYSE:GG) Los Filos Mine, the first operating mine in the GGB. Los Filos has a production forecast for 2011 of 335,000 ounces of gold, and operating cost near $425 to $450 per ounce.
Cayden recently announced the final payment of $8.6 million to Grupo Mexico for 100 percent ownership of the Morelos Sur Gold project.
The junior explorer has an NI 43-101 compliant resource of 80,000 ounces of gold on the Mina Verde deposit. One of the five targets, La Magnetita, holds the largest untested geophysical anomaly on the Guerrero Gold Belt which appears to mirror Goldcorp's geophysics at the Los Filos Mine.
In the research note, Euro Pacific Canada's mining specialist, Christina McCarthy, said: "La Magnetita is a highly prospective, and possibly the most exciting underexplored target which has the largest untested geophysical anomaly within the GGB."
Euro Pacific Canada also highlighted the strong management and technical team at Cayden, which has a proven track record with Keegan Resources (TSE:KGN)(AMEX:KGN) and that was instrumental in leading the exploration team in the discovery of the Esaase Gold deposit in Ghana, West Africa.
Cayden intends to work with a Mexican affiliate of Goldcorp to aggressively drill its Las Calles target using the same grid pattern as Goldcorp. A drill program at La Magnetita will also commence in the first half of 2012.
In addition to its GGB property, Cayden also has projects in Nevada and BC: Quartz Mountain and Wildcat, respectively. Quartz Mountain represents 6,000 hectares in three distinct historical Nevadan mining districts including Quartz Mountain, Lodi Hills, and Downeyville.
Wildcat is a copper gold project which consists of five mineral claims totaling 3,227 hectares in the Omineca Mining Division of north-central British Columbia. The project is located 12 kilometres from Terrane Metals Corp's Mount Milligan copper-gold property, with 2,214 million pounds of copper reserves and 6.02 million ounces of gold.
The capital markets firm said that Guerrero Exploration was one of the newest juniors to join the GGB in the first quarter of 2011, staking over 11,000 hectares.
Guerrero's Cerro Azul copper gold project, along with the Cotapec gold and silver project cover 81,370 hectares of the Guerrero Gold Belt.
The Cerro Azul copper gold project covers 26,000 hectares near the GGB with a third property, the Chapalota project, which is located outside of the GGB in the Sierra Madre Occidental Region of Mexico.
Guerrero's Coatapec project is located directly north of Newstrike's (CVE:NR) Ana Paula project, showing similar geological trends to Ana Paula and lying within approximately 10 kilometres of Goldcorp’s Los Filos gold mine.
Euro Pacific noted that recent exploration work has determined that 11,000 hectares of the the company's total 81,370 hectares exhibit similar geological trends to other resources and reserves on the mineral belt.
In the research report, Euro Pacific Canada said that Guerrero Exploration will continue to advance the Cerro Azul and Coatapec projects. Drilling at Coatapec will commence once permits are received.
Other companies profiled in Euro Pacific Canada's report were Torex Gold Resources (TSE:TXG), Citation Resources (CVE:CTT), Minaurum Gold (CVE:MGG) and Newstrike Capital (CVE:NES).