Cadan Resources Corporation: Announcement by Mining Group Limited New Copper-Gold Discovery at Comval
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 24, 2012) - CADAN RESOURCES CORPORATION (TSX VENTURE:CXD)(FRANKFURT:AOMZ25) ("Cadan") advises that Mining Group Limited (ASX:MNE) ("Mining Group") announced it has discovered a new, high potential mineralised zone at Tagpura North, at the Comval Copper and Gold Project (Comval Project), located 90km north of Davao City, Mindanao, in the Philippines. Mining Group's news release is reproduced below.
The Comval Project is operated by Philco Mining Company ("PMC"), which holds the exploration permits on the Comval Project. Cadan retains a 20% free-carried interest in PMC. Mining Group has an 80% interest in PMC and is the manager of the project. In addition to its direct 20% interest in PMC, Cadan also owns 3.1 million shares or approximately 4.12% of Mining Group's present issued capital (based on publicly available information), along with options to purchase a further 2 million shares of Mining Group (refer to Cadan news release of January 17, 2012 for details).
-- Extensive gold rich skarn and diorite discovered at Tagpura North with
peak assays up to 3.58% Cu and 12.52 g/t Au from rock chips.
-- Over 500m by 300m mineralised zone delineated and open to the north
-- Ground magnetic underway with drilling to commence within six weeks.
The new discovery contains mineralised skarn and diorite outcrops that are strongly mineralised with copper and gold, including a native copper occurrence (Figure 1). Mining Group has defined a 500m by 300m target zone (Figure 2) which is a significantly larger footprint than the historic Tagpura open pit mine. It has returned some of the highest copper and gold grades seen within the project area from rock chip samples to date.
To view accompanying Figure 1, visit the following link: http://media3.marketwire.com/docs/TagpuraNorth_Figure1.jpg
Tagpura North Discovery
Tagpura North has been identified from detailed mapping and systematic sampling. This work has delineated a mineralised zone with a significantly larger footprint and higher grade outcrop sampling than the historic Tagpura open pit mine.
Tagpura North is approximately 750m northwest of the Tagpura open pit mine and occurs within a down faulted structural block, consistent with Mining Group's exploration model (Figure 2). Extensive outcrops of gold rich copper/magnetite skarn interfingered with diorite intrusive have been mapped and systematically sampled and a prospective zone with a strike length of 50m and width of 300m has been delineated. This zone is open along strike to the north east and surface mapping and sampling activities are continuing along with ground magnetic to delineate drill targets with drilling planned to commence within six weeks.
All rock chip samples were sent to Macphar Laboratories in 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 sample site 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.
Appendix 1 outlines all the sample locations and results received to date.
Mining Group Managing Director Mr. Zeff Reeves commented "The surface sampling at Tagpura North returned some of the highest copper and gold assays ever achieved within the project area. We have delineated a large target zone that we aim to start drilling within the next six weeks."
"We are excited by this discovery as it continues to prove our exploration model and the new discovery area is approximately 400m vertically above the historic Tagpura pit, meaning there is potential for the entire vertical distance to be preserved. We are currently conducting detailed ground magnetics over the target in order to delineate the best place to drill and we are also waiting on further assays to be delivered," added Mr Reeves.
To view accompanying Figure 2, visit the following link: http://media3.marketwire.com/docs/Tagpura_Figure2.jpg
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 employee of Mining Group. Mr. 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. Mr. Reeves is a qualified person as defined in NI 43-101.
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 programs, 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.
To view accompanying Appendix 1, visit the following link: http://media3.marketwire.com/docs/CXD_Appendix1.pdf
FOR FURTHER INFORMATION PLEASE CONTACT:
Cadan Resources Corporation
President / CEO
Cadan Resources Corporation
John D. Anderson
Cadan Resources Corporation
(604) 628-5001 (FAX)