Positive news flow from Cayden Resources (CVE:CYD) continues with the latest drill results from its flagship Morelos Sur gold project in Mexico confirming additional, deeper resources at the Las Calles target in a second newly-discovered zone.
also included the first soil results from La Magnetita, indicating the
"increasing strength" for the potential discovery
of a multi-milion ounce deposit.
to Proactive Investors, Cayden's chief executive Ivan Bebek said: "The
latest data is revealing more value in our target at Las Calles and
confirming the potential of a multi-million ounce deposit at La
Cayden Resources is a junior resource company with
two key precious metals projects: Morelos Sur located in the Nukay
mining district of central Guerrero State in southern Mexico and the
Quartz Mountain silver-gold project in Nevada.
Morelos Sur lies
approximately 230 kilometres south of Mexico City. It contains an 80,000
ounce NI 43-101 compliant gold resource and comprises four targets: Las
Calles, La Magnetita, La Joya and Mina Verde.
The precious metals project's unique attribute is that it has a producing mine within its boundaries - Goldcorp's (TSE:G)(NYSE:GG) Los Filos mine, an 11.5 million ounce mine, the largest producing gold mine in Mexico.
This bodes well for Cayden as the latest data builds the case for a future transaction with Goldcorp
as its current operations already cover a portion of Cayden's property
where Cayden is the 100 percent owner of the mineral rights.
"Each hole that we drill and intercept significant gold mineralization adds to a potential value for a future transaction with
Goldcorp. We are drilling the extension of [Goldcorp's] mine in our property. It's an extension that they're eventually going to
need," Bebek said.
the highlights of Cayden's most recent Morelos Sur drill data, hole
LCDD0094 at Las Calles intercepted 1.02 grams per tonne of gold (g/t),
209 g/t silver and 0.38% copper over 41.7 metres.
drilled deeper than any prior core holes in the area and intercepted a
lower zone of mineralization that the company is targeting.
The latest results confirm Cayden's hypothesis that Goldcorp's
two operating pits connect through Cayden's property and that the
latest intercepts at Las Calles give an equivalent of 5.6 g/t gold over
41 metres in a second deeper zone just discovered by Cayden.
The company currently has two drills turning in the area with data from six holes pending.
said La Magnetita has also yielded "very meaningful results" of late,
with an initial trench and geochemical soil data indicating an area of
gold mineralization that now exceeds 1.4 km in strike length. Cayden is
waiting for approximately 4 square km of further results.
for the La Jolla target, the company has extended a trench to over 200
meters of gold mineralization and is preparing to drill in the next 2
The company is also gearing up for an analyst site visit due within the next couple of months.
Over at Quartz Mountain, the company is starting to confirm a model of a near-surface resource of high-grade lead and zinc.
of the latest results from late March included 18.3 metres of 119 g/t
silver, 0.3 g/t gold, 0.32% copper, 2.73% zinc and 1.89% lead in hole
QM-0023 while hole QM-0017 returned 4.6 metres of 198 g/t silver, 0.97
g/t gold, 0.33% copper, 3.56% lead and 1.45% zinc, while hole QM-0022
hit 10.6 metres of 96 g/t silver, 3.08% lead and 0.34% zinc.
said it was very pleased with the continued high grade silver
mineralization and plans more holes on the other targets in Nevada once
more data is received.
With around $4 million of cash, Bebek
said that Cayden Resources was "adequately funded" to carry out its
drilling program and expects to have $2.5 million of cash left by June
2012, when it hopes to re-finance at better rates as it will be armed
with a significant amount of drill data from its projects.