Morelos Sur Gold Project Update: Cayden Drills 14 Meters of 4.2 g/t Au at Las Calles and Trenches 51 Meters of 0.68 g/t Au at La Magnetita
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/05/12 -- Cayden Resources Inc. (TSX VENTURE: CYD) ('Cayden' or the 'Company') is pleased to announce that it has received initial results from drilling at the Las Calles target at the Morelos Sur Gold project. The Company has also received its first trench results from the La Magnetita target, as well as additional trench results from the La Joya target. The drilling highlight at Las Calles includes 14 meters of 4.2 g/t Au (LCDD0093), which occurs in an extremely fractured and iron oxide-rich diorite sill. Additional drill holes have been completed and are awaiting assay. The initial results indicate the potential for a deeper, lateral extension of the ore body currently being mined by Desarrollos Mineros San Luis (DMSL), a subsidiary of Goldcorp, at the Los Filos mine. Drill hole locations are shown at www.caydenresources.com. Cayden is continuing its Las Calles drilling with the two existing drills. The Company is also adding another core drill and a reverse circulation (RC) drill to perform some pre-collar drilling in some areas of particularly broken ground.
Table 1. New Intercepts from Las Calles Drilling
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Hole ID From To Width Grade
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LCDD0091 128 134 6 0.69
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LCDD0091 143 148 5 0.828
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LCDD0093 111 117.5 6.5 0.62
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LCDD0093 134 148 14 4.2
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including 141 143 2 16
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The first trench at La Magnetita is located alongside an access road. The trench encountered 51 meters of 0.68 g/t Au including 10 meters of 2.1 g/t Au. The mineralization is similar to other oxide mineralization as exists elsewhere in the belt in that it consists of broken, iron oxide rich bedrock near an intrusive/ sedimentary contact. There are several trench, rock and soil results pending at La Magnetita, which will be released in the next few weeks ahead of the planned drill program. Cayden is adding additional roads and trenches in the La Magnetita area and is continuing its grid based rock-sampling program, which it anticipates completing within three weeks.
The RC rig, as well as drilling pre-collar holes at Las Calles, will be used to drill a first phase reconnaissance drill fences of over 6,000 meters at La Magnetita and La Joya. Cayden expects to be delivering results from both programs throughout the 2nd quarter of 2012.
Additional trench results returned from the La Joya target expanded the length of previously released mineralized trench (see News Release dated November 9, 2011) from 134 meters of .72 g/t Au to 216 meters of 0.66 g/t Au. The best values come from unconsolidated fine-grained iron oxide-rich material between outcrops of altered limestone. Previous scattered Grupo Mexico drill holes in this area intercepted isolated intercepts of up to 87 g/t Au (see 43-101 technical report filed on SEDAR for details). Cayden plans to systematically drill in this area to determine the significance of the previous drilling in light of these new trench results.
In other news, DMSL has completed 34 out of the agreed 50 holes from its condemnation program on Cayden's Morelos Sur property; 10 with complete assays to date of up to 0.11 g/t Au. 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 Cayden's Morelos Sur property and is required to provide Cayden with program updates every 30 days. Except for access to conduct the drilling, the cooperation agreement does not transfer or abrogate any of Cayden's mineral rights in the property.
President and CEO, Ivan Bebek, states: 'We are very pleased with our progress at our Morelos Sur Project and the results we are seeing. Initial La Magnetita trenching is very encouraging as the gold is coinciding with both the magnetic and geochemistry anomalies. 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. 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 Calles target. We look forward to more confirmatory results in the coming months.'
David Hladky, P. Geo. is the Qualified Person with respect to NI 43-101 at Morelos Sur. All core is drilled at HQ or NQ diameter and is sawed or split into equal halves on site. All samples are assayed using standard 30 gram fire assay with atomic absorption finish by Acme Labs in Vancouver, Ca. QA/QC programs using internal standard samples, field and lab duplicates, re-assays, and blanks indicate good accuracy and precision in a large majority of standards assayed. Intercepts were calculated using a minimum of a 0.2 g/t cut off at beginning and end of the intercept and allowing for no more than six consecutive samples (six meters) of less than 0.2 g/t Au. The Company has not yet determined the true width for each hole, but based on previous Grupo Mexico drilling, most of the true widths at Mina Verde are believed to be at least 70% of the drilled widths.
On Behalf of the Board,
Ivan Bebek, President and CEO
About Cayden Resources
Cayden is a well financed junior mining company focused on delivering shareholder value through the acquisition, exploration and development of precious metal projects located throughout the Americas. The management team at Cayden is highly experienced with an impressive track record of success in the discovery, development and financing of mineral projects. Cayden is also strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighboring communities. Cayden trades on the TSX Venture Exchange under the symbol 'CYD'.
For more information on Cayden Resources, please visit our website at www.caydenresources.com.
To view the Map associated with this release, please visit: http://media3.marketwire.com/docs/cyd305_Map1.pdf.
Forward-Looking and other Cautionary Information
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
Neither the TSX Venture Exchange nor any other regulatory authority accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Cayden Resources Inc.
Ivan Bebek
President and CEO
604.683.8193 or Toll Free 800.863.8655
604.683.8194 (FAX)
info@caydenresources.com
www.caydenresources.com
