Capital markets firm Euro Pacific Capital said Cayden Resources (CVE:CYD) had a "very compelling" flagship project as it initiated coverage with a "Buy" recommendation.
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.
"We believe Cayden has a very compelling
flagship project, La Magnetita, attractively located in the Emerging
Guerrero Gold Beltin Southern Mexico," Euro Pacific analyst Merrill
McHenry said in a note.
The Guerrero Gold Belt is an emerging gold region in the southern State of Guerrero, Mexico, that extends roughly 60 km.
In early July, the explorer expanded the La Magnetita target area to over 7.3 square kilometres.
see La Magnetita as an exceptional exploration project, already
producing attractive trench results, with strong regional geophysical
gold project characteristics," Euro Pacific's McHenry said
"As it is still early days of exploration there is no current resource from which we can reasonably hypothesize a price target.
upon our site visits, geophysical analysis, as well as early trench
indications, we believe there is a pervasive case to own the shares
La Magnetita is the largest undrilled
geophysical anomaly of its type in the gold belt and appears to mirror
the geophysics of the Los Filos Deposit.
"La Magnetita has a roughly three times larger magnetic signature than Goldcorp’s (NYSE:GG)(NYSE:G)
Los Filos deposit. Based upon our site visits, geophysics, and recent
trench results we believe La Magnetita demonstrates attractive
lithologies regionally representative of economic gold discoveries. We
believe trench results confirm our thesis."
projects in Mexico include the recently-acquired previously producing,
El Barqueno property which consists of a large network of over 30
mineralized veins mapped on surface over a 13.5 by 4.7 km strike.
Further details on Cayden Resources can be found at: http://www.caydenresources.com