Cadan Resources corporation (tsx venture:cxd)(frankfurt:aomz25) (“Cadan”) advises that Mining Group Limited (ASX:MNE) (“Mining Group”) has provided a drilling and exploration update which includes drilling results from the Bayag Bayag target site on the Comval copper-gold project in the Philippines, which is reproduced below.
The Comval project is operated by Philco Mining Company (“PMC”), which holds the exploration permits on the Comval properties. Cadan retains a 20 percent free-carried interest in PMC. Mining Group has an 80 percent interest in PMC and is the manager of the project. In addition to its direct 20 percent interest in PMC, Cadan also owns approximately 6.2 percent of Mining Group’s present issued capital (rising to approximately 15.7 percent fully diluted for options and assuming Mining Group exercises an option to acquire the Batoto Gold Project (refer to Cadan news release of January 17, 2012 for details).
Further skarn style copper drill intercepts encountered at Bayag Bayag including BCPDH00002, 32.00m @ 0.61 percent Cu and 0.18g/t Au from 32.00m, including 11.30m @ 1.11 percent Cu and 0.16g/t Au from 50.70m
Significant porphyry style mineralisation intersected at Bayag Bayag including 5.00m @ 0.44 percent Cu and 0.15 g/t Au from 45.00m and 2.00m @ 1.38 percent Cu and 0.64g/t Au from 104.00m within a broader low grade mineralised porphyry feeder zone
Detailed ground magnetic work highlights further untested skarn targets
Recent results and ongoing exploration indicate porphyry potential
Recently received assays from drilling at the Bayag Bayag target, and in particular the extensive skarn alteration that extends for more than 700 metres along strike, provide further indications that the Tagpura/Bayag Bayag prospects have the potential to host a significant copper deposit.
Furthermore significantly mineralised porphyry feeder zones have been intersected in hole BCPDH00006 (see Figure 3) further enhancing the Comval Project’s porphyry copper prospectivity and confirming Mining Group’s exploration model.
Hole BCPDH00006 intercepted over 100m of highly altered granodiorite, consisting of distinctive sheeted vein structures containing chalcopyrite copper mineralisation and intense magnetite alteration. Locally high grade copper intercepts of 5.00m @ 0.44 percent Cu and 0.15 g/t Au from 45.00m and 2.00m @ 1.38 percent Cu and 0.64g/t Au from 104.00m were encountered within broader zones of 51.00m @ 0.14 percent Cu from surface and 50.00m @ 0.21 percent Cu from 104.00m.
Geological mapping and interpretation by consultant Dr Nick Oliver has also refined the exploration model and provided further skarn and porphyry targets for drill testing within a 2km radius of the historic Tagpura open pit mine. Dr Oliver is a former Professor of Economic Geology and director of the Economic Geology Research Unit at James Cook University and an expert in hydrothermal systems and utilising multi discipline datasets to develop mineralising models in a variety of settings.
A total of 9 holes have been drilled at the Bayag Bayag target and results have been received for the first 6 of these holes.
Mining Group’s onsite exploration team, with the input of Dr Oliver, have further refined the exploration model with the integration of ongoing detailed ground magnetic work and have identified numerous skarn targets which remain untested.
Porphyry potential at Bayag Bayag
Drill hole BCPDH00006 encountered two zones of mineralised porphyry style feeders (see Figures 2 and 3). Logging and multi-element geochemistry indicate these feeders are highly altered intrusive granodiorites, anomalous in Cu, Au, Ag, Mo and Co. The feeders are comprised of distinctive vertical dipping sheeted veins of pyrite, chalcopyrite, quartz and epidote with alteration haloes of magnetite, similar to the high temperature zone of a porphyry style deposit.
Recent detailed ground magnetics combined with historical induced polarisation data and the recent updated geological model have identified circular kilometre scale targets which are prospective for large scale porphyry mineralisation. These results will be followed up with further drilling as a priority.
Drilling progress at Bayag Bayag
Mining Group commenced drilling at the new Bayag Bayag target on 4 April 2012 and has since completed 9 diamond drill holes on the target. To date, assay results have been received for the first 6 holes and are summarised in Table 1.
Detailed Ground Magnetics
In recent months, Mining Group has utilised the expertise of geophysics company Resource Potentials Pty Ltd to conduct high resolution ground magnetic work between Tagpura and Bayag Bayag.
The survey was conducted on east-west lines spaced at 25m to provide maximum resolution. A Geometrics G859 magnetometer with inbuilt GPS was used to collect 1 second readings along lines which were walked by survey personnel. The near surface skarns have been clearly identified on the ground magnetic images (Figure 4). This data has identified a number of near surface anomalies which remain untested and provide encouragement that further skarn mineralisation exists within a 2km radius of Tagpura.
This detailed work has also demonstrated that drilling at Bayag Bayag in particular has missed the main magnetic anomalies and also delineated previously untested potential at Tagpura.
Mining Group intends to continue this ground magnetic survey work to delineate further targets within the Comval project area.
Sampling Methodology, Quality Control and Assurance and Data Verification Procedure
All drill holes have been drilled with HQ size core, geologically logged and half core samples were sent to Macphar Laboratories, Manila for analysis. Au was assayed using fire assay and an atomic absorption finish and Cu, Ag and Mo were assayed using a 4 acid digest and an ICPOES finish. Standard reference material check samples were submitted every 20 samples and a blank check submitted every 50 samples for QA/QC purposes.
All sampling is conducted under the supervision of Mining Group’s on site exploration manager and the chain of custody from the drill to the sample preparation and logging facility is continually monitored by the exploration manager. Samples are shipped to the lab by qualified couriers or Mining Group personnel under locked bags with independent identification lock numbers. Data verification of the analytical results includes a statistical analysis of the duplicates, standards and blanks that must pass acceptable parameters to ensure accurate and verifiable results. All assays are reported as drilled intervals and are not to be interpreted as true widths.
The above technical information was prepared and verified by Zeffron Charles Reeves, (B App Sc (Hons) (Applied Geology) MBA, MAIG), a member of the AIG and Technical Consultant to Mining Group. Reeves has verified the data disclosed in this news release, including sampling, analytical and test data underlying the information and opinions contained in this news release. Reeves is a qualified person as defined in NI 43-101.
For further information on Cadan Resources Corp. please visit our website at www.cadanresources.com, email us at firstname.lastname@example.org.
Forward Looking Statements
This news release may contain forward – looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Particular risks applicable to this press release include risks associated with the timing and content of future work programmes, geological interpretations and resource potential of the Comval project. There is no guarantee that additional exploration will lead to evaluation of a mineral resource, or that any resource will have demonstrated economic viability as necessary to be classified as a reserve. The reader is referred to Cadan’s most recent annual and interim Management’s Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through www.cadanresources.com or Cadan’s page on SEDAR at http://www.sedar.com.
Note: To view Figures 1 through 4, please click the following link: http://media3.marketwire.com/docs/cxd0713.pdf.
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Cadan Resources Corporation
Cadan Resources Corporation
John D. Anderson
604 687 0760
604 628 5001 (FAX)