Wednesday, 4 July 2012

Cayden Resources expands La Magnetita target area at Morelos Sur

Cayden Resources (CVE:CYD) said Wednesday it has received more than 2,000 additional results from its La Magnetita soil program, increasing the area of the gold-in-soil anomaly to over 7.3 square kilometres.

La Magnetita is part of Cayden’s Morelos Sur gold project in Guerrero State, Mexico, where the company started drilling last month.

The geochemical, and over 100 parts per billion (ppb) anomaly also remains open in most directions, the company said.

The new soils revealed extensive areas that have "highly elevated gold values", Cayden noted, including north-south trending gold values of more than 500 ppb, with strike lengths of up to 1.6 kilometres.

These higher-grade anomalies are coincident with north-south intrusive dikes, iron oxide-quartz alteration and veining within the limestone, and taken together, show an area over 1.5 square kilometres where gold-in-soil averages in excess of 500 ppb.

This area is still open to the east and south, Cayden added.

 "We continue to be impressed with the size and strength of the La Magnetita hydrothermal system," said Cayden's president and CEO, Ivan Bebek, in a statement.

"As we complete more surface exploration, the target areas are consistently growing. We believe that we have an excellent chance of discovering a significant gold deposit with our drilling programs."

Indeed, in the western anomalies where Cayden is currently drilling, the company's geologists took a grab sample assaying more than 27 grams per tonne (g/t) gold, in an area where Cayden has soils exceeding 1 g/t gold.

The gold explorer is now drilling these areas of anomalous gold-in-soil and trenches in the western portion of the La Magnetita target, and is starting additional trenching and road building in the eastern area.

The company is also continuing to extend its soil program in the directions where the anomaly remains open.

Cayden said it expects to release additional results from its Las Calles drilling shortly, with the La Magnetita drill results to be released later this summer.
In June, the first batch of trench assays from the La Magnetita prospect included 24 metres of 1.65 g/t gold, 25 metres of 0.72 g/t gold, and 25 metres of 0.52 g/t gold.     
Cayden currently has three projects located in Guerrero and Jalisco, Mexico, and Nevada, USA.

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