Cadan Resources Corporation is a gold-silver-copper company with a high quality portfolio of mineral assets, located in the Philippine Island of Mindanao, long recognized as one of the country’s most mineralized areas.
The Company’s main projects include its gold-silver mine at T’Boli in south-central Mindanao and several projects in its more than 9,000 ha Comval property, which lies in the Compostela Valley in south-eastern Mindanao.
The Comval area consists of three corridors oriented on a north-south axis: two porphyry copper-gold corridors in the eastern and western portions, and a central gold corridor. The western corridor contains the Cadan porphyry copper-gold project. The eastern corridor contains the Kalamatan, Kapanawan, and Tagpura-Maangob porphyry copper-gold and porphyry skarn copper-gold projects, going from north to south. The central gold corridor contains the gold stockwork highlighted by Batoto-Tarale gold prospect in its southern part.
Cadan’s first major project is its T’Boli gold-silver mine which is a typical epithermal high-grade, narrow vein system, that, based on modern exploration to date, has an updated NI 43-101 Report (TechReport-2009-11-28-Cadan) mineral resource of:
Indicated 866,000t @ 8.60 g/t for some 240,000 ounces of gold;
Inferred: 433,000 @ 8.50 g/t for some 120,000 ounces of gold.
The previous NI 43-101 inferred mineral resource was 2.4Mt @ 5.5 g/t gold and 21 g/t silver for some 420,000 ounces of gold and 1.6M ounces of silver.
Development of three known vein systems is underway, with an exploration-production decline now having reached North Vein B and advancing to North Vein A, and beyond that towards the gold-rich South Vein.
A gold-silver processing plant is under construction with an initial ~250-300tpd capacity. Initial processing of mineralized material is scheduled for Q4 2010, to confirm actual gold and silver grade in line with test results of 11.06 g/t gold and 38 g/t silver.
Cadan’s second major gold deposit is its central 15km x 3km corridor of gold stockworks featuring some six individual stock works highlighted by Batoto-Tarale gold stockwork system.
This has a historic Philippine resource of some 39 Mt @ 1.8 g/t gold, for some 2m ounces of gold. Validation exploration activities are progressing with a high possibility of significantly increasing both the tonnage and grade of this gold stockwork system.
The NI 43-101 has indentified this area as Target Zone A which has a “conceptual or order of magnitude” potential tonnage range of some 20Mt to 40Mt, with a potential grade range from 0.75 g/t gold to1.5 g/t gold giving a potential metal content between 500,000 oz and 2,000,000 oz of gold.
Cadan and Copper
Cadan also has exposure to the global copper market with its significant porphyry copper-gold and porphyry skarn deposits. Currently, annual world demand for copper is some 15Mt and is expected to increase to some 20 Mt within five years.
The Company’s focus for copper is on the higher grade Tagpura porphyry skarn which has an internal resource of some 10 to 15 Mt @ 0.75% copper and 0.31 g/t gold. Results from test work returned values of 1.97% copper and 0.66 g/t gold.
The Tagpura-Maangob porphyry copper-gold corridor has a “conceptual or order of magnitude” potential tonnage range between 1 billion and 1.7 billion tonnes and a grade range from 0.30% copper and 0.17 g/t gold to 0.7% copper and 0.31 g/t gold.
The Maangob porphyry skarn lies within a larger Maangob porphyry copper-gold system and has a horizontal true width of mineralization of 105m at 0.52% copper. The Maangob porphyry copper-gold deposit has a historic resource of 39.6 Mt @ .36% copper, 0.5 g/t gold and 4 g/t silver.
Recent higher grade sections were 38m at 1.72% copper (“true width”) and, at 65m along strike, 30m at 0.98% copper (“true width”). Chalcopyrite veining is visible in the massive magnetite skarn within the 38m @ 1.72% copper with a high of 1m @ 3.9% copper. The geology of the Maangob porphyry skarn is identical to the Tagpura porphyry skarn.
To the north lies Kalamatan porphyry copper-gold which has an indicated “conceptual or order of magnitude” potential tonnage range of some 100 Mt to 525 Mt, with a potential grade range from 0.27% copper and 0.11 g/t gold to 0.55% copper and 0.46 g/t gold.
The company-discovered Cadan porphyry copper-gold target lies to the west and has a potential tonnage between 450Mt and 900Mt.
Management’s focus is to aggressively develop the Company’s impressive gold-silver and porphyry skarn copper-gold assets to enhance shareholder value.
Cadan Resources Corporation’s common shares trade on the TSX-Venture Exchange under the symbol CXD and Frankfurt: A0MZ25.
It should be noted that the Batoto 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 Batoto historical resource is highly speculative and should only be considered as indicative of mineralization potential.