Cayden Options the El Barqueno Gold Property in Mexico's Sierra Madre Gold Belt
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/18/12 -- Cayden Resources Inc. (TSX VENTURE: CYD) ("Cayden" or the "Company") is pleased to announce that it has acquired an option to earn a 100% interest in the 9,800 ha El Barqueno Gold Property ("El Barqueno" or the "Property"). The Property is approximately 110 km west of Guadalajara in the state of Jalisco, Mexico. Under the Option, Cayden can acquire 100% of El Barqueno by making option payments to a subsidiary of Grupo Mexico over a three year period aggregating US $8 million (plus recoverable VAT) with payments of only $2.1 million in the first 24 months. The Option is subject to a 1.5% NSR (4% on a portion of the Property) and annual advance royalty obligations after 24 months from option exercise if commercial production has not commenced by then. A finders fee equivalent to 10% of the value of the option is payable to Ing. Antonio Berlanga, the finders fee will be payable at the rate of the option not to exceed $800,000USD of which will be paid 80% in shares and the balance in cash.
About El Barqueno
The El Barqueno property contains significantly underexplored areas of gold mineralization near areas of past production and other deposits. The geology consists of andesitic volcanic rock, which host Au-Ag-(Cu-Pb-Zn) mineralization hosted in an extensive network of veins with very large and pervasive alteration halos. The structures hosting these veins, trend from E to NE and covers a known area of over 13 km in an EW direction by over to 4 km wide in a NS direction.
The Council of Mineral Resources, a branch of the government of Mexico, undertook exploration and mining activities in the mid 1980s, producing approximately 250 thousand ounces of gold using heap leach technology from two separate small pits that make up only a very small portion of the mapped mineralization (see map at www.caydenresources.com).
Grupo Mexico's subsidiary, IMMSA, acquired the Property in 1999 and subsequently drilled below the existing pits and on other specific known prospects. In an internal report dated January 9, 2005 (made available to Cayden), IMMSA defined a non-compliant (with Canadian disclosure standard NI 43-101) resource of approximately 2,400,000 tons at an average grade of 3.62 g/t gold, equivalent to about 290,000 ounces of gold over several prospects on the property. Cayden's examination of long sections and block models from this exploration effort suggests a) that the block model was conservatively constructed, b) that it appears that a polygonal model was employed, c) that the holes were incompletely assayed (only vein intercepts), and d) that mineralization is open in several directions on most of the prospects. Cayden can give no assurance that the resource model will prove verifiable using 43-101 standards nor any assurance as to whether any resource that may be determined to be on the Property will fit into an inferred, measured or indicated category. Cayden was provided no information in the existing data that any previous grid based soil, rock or geophysical surveys were performed. Thus, Cayden's plan will first focus on applying modern grid based geochemical and geophysical exploration techniques to the property, after which time a comprehensive drilling program will be designed. Only after Cayden has done its own drilling, assaying, and applied its own geostatistical techniques will it estimate a 43-101 resource.
Cayden CEO, Ivan Bebek, commented: "We are thrilled to have secured the rights to such a large and extensive underexplored epithermal gold system. El Barqueno gives Cayden shareholders the opportunity to benefit from a second highly prospective gold project in another prolific metals producing area in Mexico. El Barqueno has large mineral systems at advanced stages of exploration that have both the size and grade potential, to host multi-million ounce deposits that can be discovered through the application of systematic, modern exploration."
On Behalf of the Board,
Ivan Bebek, President and CEO
About Cayden Resources
Cayden is a 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.
Forward-Looking and other Cautionary Information
Certain statements and/or graphics in the Company's press releases, web site information and corporate displays, among others, constitute "forward-looking information". Forward-looking information is information that includes implied future performance and/or forecast information including information relating to, or associated with, exploration and or development of mineral properties. These statements or graphical information involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different (either positively or negatively) from any future results, performance or achievements expressed or implied by such forward-looking statements.
Forward-looking statements are identified by wording such as "scheduled (future sense)", "intend(s)", "plan(s)", "expect(s)", "believe(s)", "will", "estimate(s)", "forecast", "anticipate(s)", "expect(s)", "may", "should", "goal", "target", "aim", "may", "would", "could" or "should" or, in each case, the negative thereof, other variations thereon, comparable terminology or wording/graphical information that implies anticipated future results or deliverables. You are cautioned not to place any undue reliance on any forward-looking statement. Relating to exploration, the identification of exploration targets and any implied future investigation of such targets on the basis of specific geological, geochemical and geophysical evidence or trends are future-looking and subject to a variety of possible outcomes which may or may not include the discovery, or extension, or termination of mineralization. Further, areas around known mineralized intersections or surface showings may be marked by wording such as "open", "untested", "possible extension" or "exploration potential" or by symbols such as "?". Such wording or symbols should not be construed as a certainty that mineralization continues or that the character of mineralization (e.g. grade or thickness) will remain consistent from a known and measured data point. The key risks related to exploration in general are that chances of identifying economical reserves are extremely small. The geological prospectivity of areas which surround, or are adjacent to, deposits from which current production is occurring does not imply that future discoveries will be made, nor does it imply that, should a discovery be may, it will be economically produced. The record of past production in terms of metal and/or produced resources does not provide any increased likelihood that new discoveries will be made or that new discoveries can be economically developed. Historical estimates (non NI 43-101 compliant), related to undeveloped deposits, do not provide any increased probability that new discoveries will be made or that new discoveries can be economically developed. The forward-looking information and future-oriented financial information published by the Company are expressly qualified by this cautionary statement. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
To view Figure 1, please visit: http://media3.marketwire.com/docs/cyd418_F1.pdf.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Cayden Resources Inc.
Ivan Bebek
President and CEO
778.729.0600 or Toll Free 800.863.8655
604.683.8194 (FAX)
info@caydenresources.com
www.caydenresources.com
