Cayden Resources (CVE:CYD) unveiled Monday initial results from its drill program at the Las Calles target and its trench program at the La Magnetita and La Joya targets, each located on the Morelos Sur gold project, located in the Nukay mining district of central Guerrero State in southern Mexico.
Significant results at the Las Calles target included LCDD0093, which
intersected 14.0 metres grading 4.2 grams per tonne (g/t) gold,
including 2.0 metres at 16.0 g/t gold. The hole also intersected 6.5
metres grading 0.62 g/t gold.
Other notable results included LCDD0091, which returned 6.0 metres grading 0.69 g/t gold, and 5.0 metres grading 0.828 g/t gold.
These initial results, said the company, indicate the potential for a
deeper, lateral extension of the ore body that is currently being mined
by Desarrollos Mineros San Luis (DMSL), a subsidiary of Goldcorp (TSE:G), at the Los Filos mine.
The Los Filos mine is a producing mine that is located within the
boundaries of Cayden's Morelos Sur property. Los Filos is also the
largest gold mine in Mexico and is forecast to produce 345,000 ounces of
gold in 2012 at a low cost of under $500 an ounce, according to Goldcorp.
"We are very pleased with our progress at our Morelos Sur Project and
the results we are seeing," said Cayden president and CEO, Ivan Bebek
"Las Calles is now progressing well after a very slow start due to
some drilling challenges which have since been resolved. The initial
results indicate the likely extension of the Los Filos mine into our
ground and the potential connection of DMSL's pits through our Las
"We look forward to more confirmatory results in the coming months."
Drilling is continuing at Las Calles with two rigs on the property.
The company will also add another core rig and a reverse circulation
(RC) drill rig to perform some pre-collar drilling, Cayden said.
Meanwhile, Cayden also received the assay results from the first
trench at its La Magnetita target, which encountered 51.0 metres of 0.68
g/t gold, including 10.0 metres of 2.1 g/t gold.
"Initial La Magnetita trenching is very encouraging as the gold is
coinciding with both the magnetic and geochemistry anomalies," Bebek
"We are looking forward to receiving and analyzing the numerous
surface results pending from the La Magnetita area prior to drilling at
the end of March."
On the La Joya target, additional trench results expanded the length
of the mineralized trench to 216.0 metres at 0.66 g/t gold, from 134.0
metres at 0.72 g/t gold in November 2011.
The company will use the RC rig at Las Calles to drill a phase one
reconnaissance drill fence over 6,000 metres at La Magnetita and at La
Joya. Cayden said it expects to deliver the results of this program by
the second quarter of 2012.
In other news, Cayden reported that DMSL has completed 34 of the
agreed 50 holes from the condemnation program on Cayden's Morelos Sur
property. Assay results for ten holes have been received to date,
grading up to 0.11 g/t gold.
Under the current cooperation agreement between DMSL and Cayden, DMSL
agreed to drill an area marked out for the planned expansion of the
current operating heap leach on the Morelos Sur property. DMSL is
required to provide Cayden with a program update every 30 days. Cayden's
mineral rights for the property are not affected by the agreement.
On the TSX-Venture Exchange, Cayden shares rose four percent to $2.60, as of 12:21 pm EDT.