01.06.2010 15:32
Cadan Reports That NI 43-101 Technical Report Highlights Major Gold Mineralized Corridor and Potential for Regionally Significant Gold Discovery
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/01/10 -- CADAN RESOURCES CORPORATION (TSX VENTURE: CXD)(FRANKFURT: A0MZ25) ("Cadan" or the "Company") is pleased to announce that the recently released NI 43-101 compliant Technical Report (http://media3.marketwire.com/r/cxd0601), on its ComVal Projects, located in the Eastern Mindanao mineral belt of the Philippines, has highlighted a mineralized corridor of some 14km long by 2.5km wide within which currently lies a group of six regionally significant gold prospects.
Highlights:
The NI 43-101 Qualified Person, Mr. Kevin Shultz FAusIMM (CP), has reviewed Cadan's potential for large tonnage stockwork gold deposits at the Company's Batoto and Tarale gold stockworks, and four other large areas of partly defined gold stockworks.
Mr. Schultz describes the basic data for the compilation of the Batoto historical non NI 43-101 compliant resource of 39 million tons at 1.8g/t for 2.1 million ounces.
He states that the mineralization may extend another one kilometre to the south west from Batoto and link with the large Santa Fe gold stockwork. He further states that since 2003 Cadan has exposed 80 gold bearing veins in an area 2.5km by 3.0km at Batoto, and that in 1981 80,000 tonnes was mined and processed at Batoto at a grade of 4-5g/t Au.
Selective mining at Tarale in 2004/5 of 3275 tonnes returned an average of 5.9g/t Au at 90% recoveries. The Tarale system is 700m south of Batoto and samples as high as 780g/t have been recorded.
Two bulk samples from the Santa Fe stockwork (11.6 tonnes and 50 tonnes) have averaged 3.9g/t Au and 3.17g/t Au respectively.
The Surigaonon stockwork was assigned a historical non NI 43-101 compliant resource of 2.85 million tonnes at 2.1g/t Au.
Schultz states that exploration is far from complete and the ComVal Projects offer the potential for the discovery of regionally significant epithermal gold systems.
Reconnaissance exploration some 3km north of the main gold stockworks has defined an area 6km by 2km with widespread gold occurrence in drainage systems, intense red clay alteration, an interpreted collapse structure some 500m in diameter and anomalous bulk leach extractable gold samples. This area remains virtually unexplored.
The Technical Report stated that: "geologically, and in terms of gold potential, the Eastern Mindanao Mineral Belt may be compared with the highly productive New Guinea Mineral Belt of West Irian and Papua New Guinea and the Walker-Lane and Roberts Mountain Thrust belts of Western USA. Concerted and sustained exploration in these regions during the 1970s and 1980s resulted in numerous gold discoveries."
The NI 43-101 Technical Report was prepared by Mr Kevin Shultz FAusIMM (CP) a consulting mining engineer and geologist and Fellow of the Australasian Institute of Mining&Metallurgy (Chartered Professional) with more than 35 years experience in Australia, Western USA, Canada, Papua New Guinea Tanzania and other African countries.
The Batoto Gold Prospect
The Batoto gold prospect, 150m by 400m, is a stockwork of quartz veins associated with locally intense quartz pyrite-sericite argillic alteration cropping out around the spur of a mountain ridge between elevations 400m and 800m above sea level. Gold mineralization occurs within a west-southwest trending zone known as the Clark Mineralized Zone ("CMZ"). Workings of local indigenous people within CMZ are exposed over about 1km in a west-southwesterly direction from the northeastern point of the spur; but the mineralization may extend at least another kilometre to the west-southwest and link with the Santa Fe gold prospect.
Identified in 1980 by Sabena Mining Corporation, it was explored by 787 rock chips samples from some 7,000m of road cuts, systematic trenches and 400m adits, drifts and cross cuts, reportedly averaging 1.6g/t Au and giving rise to a number of historic "ore reserve" estimates. In 1981 one estimate by geological consultants amounted to 39 million tons at 1.8g/t Au for 2.1 million ounces of gold. It should be noted that the foregoing historic "ore reserve" estimate was not prepared in accordance with CIM standards. Further, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. The Company is not treating the historical estimate as current mineral resources or mineral reserves as defined in sections 1.2 and 1.3 of NI 43-101, and the historical estimate should not be relied upon. The foregoing historical resource is highly speculative and should only be considered as indicative of mineralization potential.
In 1981, Sabena Mining Corporation constructed a 500t/d gold processing plant and mined and processed approximately 80,000t from a small open cut on the Batoto prospect. The ore was reported to have a grade of 4-5g/t Au, with the material between the main veins appearing to be pervasively mineralized and averaging about 1.4g/t Au.
In 2006, Cadan drilled six diamond drill holes for some 1,356m to test part of the CMZ and reported that all holes obtained "potentially economic mineralization" of the grade and thickness currently being mined by many large bulk mineable heap leach or carbon in pulp operations in the world. The widespread and consistent nature of the mineralization is considered highly encouraging and is now known to occur from the surface to depths in excess of 250m. In addition the Company is encouraged by the potential for intersecting substantially higher grade mineralization along the minimum 1500m long zone.
The Technical Report stated that the results of historic 1980 trenching and sampling by Sabena Mining Corporation and the results of Cadan's 2006 drilling may be used as the basis of nominating the target potential of the CMZ within the historic defined zone - Target Zone A. Target Zone A has a "conceptual or order of magnitude" potential tonnage range of some 20Mt to 40Mt, with a potential grade range from 0.75g/t gold to 1.5g/t gold giving a potential metal content between 500,000 oz and 2,000,000 oz of gold. It should be noted that the foregoing historic resource was not prepared in accordance with CIM standards. Further, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. The Company is not treating the historical estimate as current mineral resources or mineral reserves as defined in sections 1.2 and 1.3 of NI 43-101, and the historical estimate should not be relied upon. The foregoing historical resource is highly speculative and should only be considered as indicative of mineralization potential.
The Tarale Gold Prospect
The Tarale gold prospect, covering some 800m by 600m, is situated about 700m south of Batoto and 1,500m east of Santa Fe. Gold in the Tarale gold prospect occurs in sub horizontal sheets with interconnecting veins and microveinlets.
Bulk channel samples that Cadan processed in a locally available coarse grind processing plant indicated gold recoveries in excess of 90%. The bulk parcels of vein material were mainly from Batoto, the Santa Fe area and Tarale.
Between October 2004 and April 2005 Cadan treated a total of 3,275t from Tarale for an average recovery of 5.9g/t gold, with the last 1,265t giving a recovery of 8.0g/t gold. The daily mill recoveries averaged 90%. The consistency of the recovery over such a lengthy period of time, and the total amount of material treated, would indicate that the bulk samples of vein material were representative of the mineralization being tested.
Santa Fe Gold Prospect
Cadan's completed geophysical surveys show that the Batoto-Tarale system of intense alteration and quartz vein stockworks is associated with resistivity anomalies. The surveys have defined potential for additional mineralized zones along the strike of the CMZ to the west-southwest.
Of these zones, the Santa Fe area (Target Zone B) is particularly interesting in this context because of the results of the 50t bulk channel sample across 176m in Batoto Creek which returned 3.17g/t Au, 47.3g/t Ag and 0.10% copper.
Other Gold Prospects
The Batoto, Tarale and Santa Fe gold deposits are parts of a major zone of gold mineralization extending 14km northwards from Batoto through to the Panag gold area.
Other gold prospects that lie within this mineralized corridor include:
Kopiat Creek: This prospect is located about 1km north-northeast of Batoto. A 1,500m long creek exposes hydrothermally altered rock with the lower (eastern) 1,000m exposing macro and micro quartz veining and propylitic/silica alteration over a vertical interval of about 350m. As disclosed in the Company's news release of October 6, 2005, best sample results were:
Upper Kopiat Creek Area: 40m grading 3.54g/t Au (including 12m grading 7.92g/t Au).
Lower Kopiat Creek Area: 24m grading 1.3g/t Au (including 8m grading 2.17g/t Au)
Surigaonon: Located about 2km north of Batoto, Surigaonon is an area of about 1,600m by 950m containing numerous, mostly north-westerly trending larger veins with sub-parallel micro veinlets and extensive silicification within an argillically altered andesite intrusion. The style of mineralization has many similarities to Batoto. As reported in detail by Cooper (2002), historical exploration in the 1980s resulted in a historic estimation of 2.85Mt at 2.1g/t Au. It should be noted that the foregoing historic estimate was not prepared in accordance with CIM standards. Further, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. The Company is not treating the historical estimate as current mineral resources or mineral reserves as defined in sections 1.2 and 1.3 of NI 43-101, and the historical estimate should not be relied upon. The foregoing historical estimate is highly speculative and should only be considered as indicative of mineralization potential.
Panag: Panag is an area of small-scale high-grading mining activities of the 1980's including a number of adits driven along gold-bearing quartz veins, and trenches and pits dug for alluvial gold, about 6-8km north of Batoto. The regional prospectivity of the area was highlighted by bulk leach extractable gold results obtained in a reconnaissance survey by Normandy Exploration.
Cadan: Trenching by the Company at the Cadan Geophysical (IP) Anomaly has revealed anomalous gold (20m at 0.33g/t Au) in quartz stock-works located outside the porphyry copper-gold target.
Resource Definition - Approach
The Technical Report discussed doubt about the effectiveness of drilling as a means of determining the true potential of gold-bearing stockwork and alteration systems with narrow high grade veins. Results from the sampling of the Clark Crosscut were encouraging and suggest that the grade of the mineralization might prove to be higher if sampled effectively by trial bulk mining.
The reconciliation between face/drill sampling and bulk sampling has been poor. Bulk samples have returned multiples of face and drill indicated grades. This is thought to reflect the erratic distribution of gold in the stockworks and the small size (30 grams) of face/drill samples submitted for assay.
However, to date initial testwork with one kilogram cyanide leach assays has improved reconciliation towards the results indicated by bulk samples.
Summary
The Technical Report comments that results to date show that the Batoto-Tarale area of the ComVal Project does have the potential for large tonnages of bulk mineable low grade gold.
Qualified Person and Quality Control and Assurance
Technical aspects of this news release were prepared and verified by William Donald Goode, a member of the AusIMM and Technical Director of Cadan. He is the qualified person as required by NI 43-101, and is the technical person responsible for this news release. The qualified person has verified the data disclosed in this news release, including sampling, analytical and test data underlying the information and opinions contained in this news release.
For further information relating to the mineral resource and the geological setting, readers are referred to "Batoto-Tarale (ComVal) Project" on pages 35 to 53 of the Technical Report titled Exploration and Development Strategy for T'Boli and Batoto-Tarale Gold Projects, Mindanao,Philippines, dated November 28, 2009 and filed on SEDAR on May 10, 2010. The Technical Report is available on www.sedar.com.
On behalf of the board of directors,
Brett Taylor, President / CEO |
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