Cadan Porphyry Copper – Gold Target
The company-discovered Cadan porphyry copper-gold target lies some 5km west of the Tagpura-Maangob corridor and has a potential tonnage between 450Mt and 900Mt.
It is a regionally significant new discovery, the first of its type in this region for 25 years.
It was discovered as a result of progressive exploration after a reconnaissance geophysical line (induced polarization or “IP” method) first hit the eastern extremity of the anomaly in late 2004. Using close spaced geophysics, detailed surveying, mapping and sampling, covering the some 6 square km, the true geophysical picture of Cadan began to emerge.
The Cadan prospect geology supports the geophysical model, with surface expression showing alteration features, including magnetite (+10%), actinolite, biotite, epidote, pyrite (vein and disseminated), traces of chalcopyrite (vein and disseminated) and propylitic altered rocks to the north of the anomaly. Also discovered are zones of quartz veining, brecciation, and, from initial sampling, anomalous copper and gold geochemistry.
The technical team is completing follow-up geological mapping and trenching to better define the geophysical targets for drilling. Cadan is encouraged that, in a trench located over the central part of the anomaly, there is intense stockwork magnetite/sulphide (now oxides), veining, and areas with brecciation.
The latest trenching results confirm the large anomalous copper area, first identified by the geophysical anomaly, of the Cadan copper-gold porphyry, with trenching returning copper values 15 times the local background copper values.
Copper and gold grades will be determined during first phase drilling.
Mineralization
While the copper and gold grades of the Cadan porphyry copper-gold target will not be known until first phase drilling is completed, the historical average for known deposits in this region are set out below and are indicative of the possible potential tonnage and copper-gold content of the new prospect.
Examples demonstrating the regional grade in this region include:
The Tampakan Copper-Gold Project, with a measured resource of 568Mt at 0.71% copper and 0.29 g/t gold, and an Indicated Resource of 836Mt at 0.58 % copper and 0.22 g/t gold. It also has an Inferred Resource of 566Mt at 0.49% copper and 0.18 g/t gold.(reference: Indophil Resources NL, published resource JORC Code, September 30, 2006);
The North Davao Mining Corporation area called Amacan, now owned by the government, with an in-ground resource of 65Mt at 0.34% copper (reference: North Davao Mining Corporation report titled “Amacan Copper and Hijo Gold Projects Information Memorandum” undated, circa 1996);
The King King Copper-Gold Project, with a resource estimated by TVI Pacific Incorporated and Echo Bay Mines of Canada (Level 1 Feasibility announced April 29, 1997, “Echo Bay Reports 1st Quarter Results”) of 438.8 Mt, at an overall grade of 0.342% total copper and 0.015 ounce per tonne gold.
Note that Amacan “in-ground resource” and the King King Copper Gold Project “resource” do not conform to the CIM Standards and are only provided as an indication of regional mineralisation potential. The projects mentioned in the above paragraph are not assets of Cadan.