Cadan Resources Corporation (“the Company”)is engaged in the exploration of precious and base metal projects located in the Philippines. Its corporate objective is to advance the exploration of each project to the point where it can be developed economically, either by itself, or, in a development joint venture. The Company also owns a gold processing plant located at the T’Boli project site. The Company has three main projects: the T’Boli Gold-Silver Project; the Batoto Gold Project; and, the Agusan Copper-Gold Project.
T’Boli Gold-Silver Project: The Company’s management and resources are focused on the exploration and development of the T’Boli gold-silver deposit located in south-central Mindanao, Philippines, which represents its most advanced asset. The T’Boli gold-silver project has a well-established history of artisanal mining and milling, the project is geologically well understood and the Philippines has granted permission to mine and mill up to 140,000 tonnes of ore per annum. The Company issued an updated NI 43-101technical report on the project in March 2013, which can be found on SEDAR www.sedar.com, which updated the Inferred Mineral Resources estimate to 3.8Mt at 8.7g/t Au and 27g/t Ag for a contained 1.1Moz Au and 3.3Moz Ag.The project is ready for operations with a constructed and commissioned carbon-in-leach (CIL) processing plant, including a crushing and grinding circuit. Exploration development along existing veins is being prepared as stoping blocks, which will allow the operation to become a self-sustaining underground mine. To achieve this, the Company needs capital to: upgrade and acquire additional equipment for the mine and to accelerate the developmentof the mine; complete the number 2 tailings pond; and, to make modifications to improve efficiency at the CIP plant.
The Company was significantly impacted by the global shortage of funds available for developmental projects, and, although the Company has been able to access limited funds, to date, it has not been able to develop the project to a self-sustaining level. The Company is continuing to explore funding opportunities and is optimistic that it will access the required funding to achieve self-sustaining operations within 2014. In the interim, the CIL plant is in an operational state, however, due to funding issues, the mine does not produce enough ore for the CIL plant to process on a full time basis, so processing is conducted on a campaign basis. Our schedule for the development of the mine, which we are in the process of updating and modifying,is projecting full production toward the end of 2014, assuming financial resourcing are available to achieve the plan.
Batoto Gold Project: Due to the shortage of funding, the Company has placed its project on care and maintenance, ensuring it retains the rights and access to develop this project in the future.
Agusan Copper-Gold Project: Following the sale of an 80% interest to Mining Group Limited (“MGL”) of Perth, Australia, completed in January of 2012, the Company holds a 20% equity interest in Agusan Metals Corporation (“Agusan”), incorporated in the Philippines. Agusan owns the Comval porphyry skarn copper-gold deposits and targets, contiguous with the Batoto Gold Project.The Company’s interest in Agusan is free-carried until such time as MGL has incurred project expenditures of AUD$48 million, to be incurred by January 2017, in accordance with an agreed expenditure schedule, failing which, MGL’s interest in Agusan will be diluted. Agusan is experiencing similar difficulties in accessing funding and have not been able to develop the project as expected. Cadan and MGL will need to evaluate their options in January 2015 if MGL expenditures on the project are below the AUD$15 million milestone, in accordance with an agreed expenditure schedule.
MGL issued a NI 43-101 technical report on the project in April 2013, which can be found on SEDAR www.sedar.com, which reported: an Inferred Mineral Resources estimate above 0.3% Cu of 32.6M tonnes at 0.42% copper, 0.13% gold, for 136,100 tonnes copper and 133,700 oz gold; and an Inferred Mineral Resources estimate above 0.4% Cu of 8.9M tonnes at 0.66% copper, 0.19% gold, for 56,900tonnes copper and 56,900 oz gold.
In addition to its direct 20% interest in Agusan, Cadan also owns 8,692,381 common shares of MGL.
Updated February 2014