Batoto Gold Project
- A central gold corridor some 15km long by 2.5km to 3km wide has been identified.
- Structural interpretation from Google image and drainage systems reinforces the potential for the corridor to host a world class quartz stockwork gold resource.
- Exploration has partly defined six large areas of gold stockwork mineralization which have a strong spatial relationship to the structures identified in (2) above.
- One of the areas (Batoto) where exploration is ahead of (but far from complete) the five other stockworks, an historical resource of 39m tonnes @ 1.8gm of gold was defined. The dimensions of the Batoto stockwork is 150m by 400m and as such is one of the smaller of the six stockworks identified to date. The Batoto stockwork system is open along strike to the south west.
- One the larger stockworks (Santa Fe) is underlain by a large deep resistivity anomaly.
- Bulk samples from Santa Fe returned some 4gm gold/tonne.
- Outcrop in the area is generally poor with dense tropical vegetation. Meaningful geology and sampling is only normally seen in deeply incised creeks.
- Trenching and pitting and road toe sampling have been effective.
- Reconciliation between face/drill sampling and bulk sampling has been poor. Bulk samples have returned multiples ( times four) of face and drill indicated grades. This is thought to reflect the erratic distribution of gold in the stockworks and the small size (30g) of face/drill samples submitted for assay.
- Limited testwork with one kg cyanide leach assays has improved reconciliation towards the results indicated by bulk samples.
- A cyanide leach facility has been set up onsite to facilitate further testwork and define the most valid sampling and assaying procedures. Any data used in resource estimates would be submitted to an independent commercial lab.
- Limited mining from one of the stockworks (Tarale), some 3000 tonnes averaged 6gm gold.
- Selected mining (circa 1980) from Batoto some 80,00 tonnes is reported to have returned 4-5gm of gold/tonne.
- Some 40km north of the corridor is the Diwalwal Mine >7.5m ounces with a head grade of 60gm of gold/tonne. It is thought that Diwalwal type deposits are the deeper roots of a gold stockwork system.
In October 2012, the Option Agreement over the Batoto Project, between Cadan and Mining Group Limited, expired and the Company regained full control of the project.
Cadan’s President and CEO, Robert Butchart, stated:
“The Company believes the Batoto Project is one of the Philippines’ best undeveloped gold projects and we are now in a position of strength to develop this project and return its full value to shareholders. The original Option Agreement to offer over the Batoto Gold Project was driven by difficult market conditions, and we are excited to have the same market conditions return this project to Cadan’s control. The Batoto Gold Project offers excellent discovery opportunities for gold and gold-copper that will complement the T’Boli gold mining operation. Six large areas of stockwork gold mineralization have been identified to date. Three of the areas are ”walk up” drill targets. The Company intends to capitalize on our existing projects to build an enduring mining house.”