Cadan Commences New Drilling Program at T'boli
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/22/12 -- CADAN RESOURCES CORPORATION (TSX VENTURE: CXD)(FRANKFURT: AOMZ25) ("Cadan" or the "Company") announces new drilling program at T'Boli.
Cadan is pleased to announce that it has commenced a 12,000 meter underground deep drilling program to test multiple vein systems at its flagship project, the T'Boli Gold Mine located on Mindanao Island, Philippines.
T'Boli is an epithermal gold - silver mineralizing system with a significant initial gold resource estimate under NI 43-101 of 240,000 ounces of gold and 119,000 ounces of gold in the indicated and inferred categories respectively, as well as an NI 43-101 inferred silver resource estimate of 1.6 million ounces of silver(1). Underground lateral development is building an inventory of stoping blocks in anticipation of completion of the government permitting process prior to commissioning of the recently constructed CIL mill.
Most of the proposed drilling is outside the established resource. Cadan is conservatively targeting a threefold increase in resources, with a more speculative multiple of seven being possible.
A regional potential of between 2 - 5 million ounces of gold and 8 - 25 million ounces of silver has been previously estimated using ranges of tonnage and grade (see below cautionary statement on potential quantity and grade ranges)(2).
Epithermal mineralizing systems have a demonstrated pattern of increasing vein intensity, assay values and hence ounces per vertical meter at increasing depths. This area of enrichment is referred as the "boiling or bonanza zone". Existing geological data (clay geothermometer minerals and gold silver ratios) indicates that the existing established resource is still in the shallow part of the epithermal system.
The Company has deployed a recently purchased Longyear 38 drill rig and ancillary equipment that is capable of hole depths in excess of 500m. The program has been designed to test for extensions of high-grade gold mineralization along strike and at depth along known vein structures with the objective of increasing resource tonnage. To expedite completion of the program, it is anticipated that additional drill rigs will be procured as chamber development proceeds. A second objective of the program is to uplift the confidence level of existing resource tonnes presently classified as "Indicated" and "Inferred" to "Measured" and "Indicated" where appropriate.
The inclusion of underground lateral development undertaken during the past twelve months and results from adit and channel sampling derived therefrom will form part of the expanded data base for resource tonnage and grade estimation purposes which the Company expects to have later in the year.
In addition to the drilling activities, Cadan continues to invest in underground development to establish drill chambers for access and optimal positioning of drill rigs (see Figures 1 to 3 below). Initially a number of the proposed holes can be drilled from within the existing mine workings and the first of these holes has now commenced (see Figure 1 for approximate location).
The Company anticipates that a new NI 43-101 compliant resource estimate will be generated toward the end of Q4 2012.
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 Resources. He is the qualified person as required by NI 43-101, and is the technical person responsible for this news release.
Notes:
(1) An initial JORC resource of 420,000 oz of gold and 1.6m oz of silver in the Inferred category was estimated by I Cooper in 1997. This was independently audited and confirmed by Hackchester Pty Ltd as JORC compliant (see press release Dec. 4th 2002). A further review by Cooper stated that the resource was NI 43-101 compliant (see press release Feb. 12th 2003).
In 2008 an internal Cadan review indicated an underground resource of 240,000 oz of gold in the Indicated category and 119,000 oz of gold in the Inferred category, no silver ounces were computed. An independent report prepared by K Schultz in 2009 pursuant to NI 43-101 states that the 2008 resource meets CIM reporting standards (see press release May 11, 2010).
(2) Cadan's news release of May 11, 2010 disclosed the regional potential as a conceptual or order of magnitude" potential tonnage range of some 11Mt to 27Mt, with a potential grade range from 5.5 g/t gold to 8.6 g/t gold and 21 g/t silver and 30 g/t silver giving a potential metal content between 2-5 m oz of gold and 8-25 m oz silver. The regional potential was determined based upon information collected over a period of 10 years, and comparison with other classic epithermal quartz carbonate systems in the southwest Pacific region. The estimate of potential was conceptual as there had been insufficient exploration to define a mineral resource and it was uncertain whether exploration would result in the definition of a mineral resource.
On behalf of the board of directors,
Robert G Butchart, President / CEO
For further information visit our website at www.cadanresources.com, or email us at infor@cadanresources.com.
Forward Looking Statements
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Particular risks applicable to this press release include risks associated with planned production, including the ability of the Company to achieve its targeted production outline due to regulatory, technical or economic factors. In addition, there are risks associated with estimates of resources, and there is no guarantee that a resource will have demonstrated economic viability as necessary to be classified as a reserve. There is no guarantee that additional exploration work will result in significant increases to resource estimates. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through www.cadanresources.com or the Company's page on SEDAR at http://www.sedar.com.
To view Figures 1, 2 and 3 please click on the following link: http://media3.marketwire.com/docs/CXDFigures.pdf
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Cadan Resources Corporation
Robert Butchart
President / CEO
(604) 687-0760
butch@cadanresources.com
Cadan Resources Corporation
John D. Anderson
Chairman
(604) 687-0760
(604) 628-5001 (FAX)
janderson@cadanresources.com
www.cadanresources.com
