Batoto Tarale Gold-Silver

Cadan’s second major gold area is its Batoto-Tarale gold-silver stockwork zone.

This is highlighted by a large gold-silver stockwork system, of some 15 km x 3 km, within which lies the Batoto gold target, with a historic Philippine resource of some 39 Mt @ 1.8g/t gold, for some two million ounces of gold.

In 1987-89, based on old reports, mining within part of the historic resource returned 80,000 tonnes @ 4-5g/t gold. Moreover, the material between the main veins appears to be pervasively mineralized, averaging about 1.4 g/t gold.

Recent exploration work, including mapping of more than 100 major veins within a portion of the stockworks with microveinlets in between, indicates that gold mineralization is widespread. Channel sample assay values, however, are of the order of 0.5 g/t gold indicating a possible nugget effect and suggesting a different assay technique is required to provide more authentic results from the channel samples.

In 2005, a 123m cross-cut, to test a portion of the historical resource, returned an average of 2 g/t gold over the entire 123m.

Extensive gold stockworks have been discovered 7km north of the above cross cut, adjacent to a geophysical anomaly and a pronounced circular feature. This stockwork system averages more than 1.5 g/t gold.

Later in 2005, additional gold stockwork mineralization was discovered some 1.5 km south of the cross cut over an exposed width of 176m.

A 50 tonne bulk sample from this area was tested and returned 3.17 g/t gold, 47.3 g/t silver and 0.10% copper. The extraction result for gold was 90.9%.