Cadan Resources Corporation

Cadan Resources Corporation

March 03, 2010 03:23 ET

Cadan Commences Testing Phase Of Its T'Boli Gold Plant

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2010) - CADAN RESOURCES CORPORATION (TSX VENTURE:CXD)(FRANKFURT:A0MZ25) ("Cadan" or the "Company") is pleased to announce that it has commenced the initial "testing phase" of its ball mill and CIP tanks section of its wholly own gold-silver treatment plant located at T'Boli, South Cotabato Province, Mindanao, Philippines.

To-date some 500t of old tailings and lower grade material, ranging from 1 to 3 g/t gold, is being used to test the plant and equipment. The ball mill has operated between 8 and 10 tonnes per hour with mechanical adjustments being made to fine tune the plant and equipment.

According to Cadan's Chief Operating Officer, Mr Robert Butchart, this "testing" phase will provide progressive information on operational performance and consumables consumption to achieve optimum recoveries of gold and silver, expected to be some 90 per cent.

While this work is ongoing, the plant contractors will complete additional infrastructure for the primary and secondary crushing circuits.

Cadan's T'Boli epithermal gold-silver deposit has a NI 43-101 Inferred Mineral Resource (2.4Mt @ 5.5g/t gold and 21 g/t silver) of some 420,000 ounces of gold and 1,600,000 ounces of silver (see News Release dated Thursday, December 18, 2008).

In addition, some 400m of decline crosscutting and some 400m of decline have been completed with four auriferous vein structures exposed. The underground work is focused on the lateral development of these vein structures. Six heading have been advanced towards historic and previously reported drill intercepts being 1m @ 15.3 g/t gold and 1m @ 24.1g/t gold.

Development planning is underway to access historic and previously reported deeper, higher grade and wider intersections being TD 008 - 8.5m @ 15.6 g/t gold and TD 003 - 3.5m @ 23.5 g/t gold.

Cadan Resources Corporation is an emerging junior gold-silver producer and development company with significant mineral assets located in the Philippines. The Company's T'Boli gold-silver mine is near completion and expected to be operational by the end of the first quarter this year. Exploration and development work is also underway on its 9,000 hectare Comval Property which hosts large and significant gold and copper-gold deposits.

Qualified Person and Quality Control and Assurance

Technical aspects of this news release were prepared and verified by William Donald Goode, a member of the AusIMM and Technical Director of Cadan Resources. He is the qualified person as required by NI 43-101, and is the technical person responsible for this news release. The qualified person 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.

The Inferred Mineral Resource Estimate conforms with CIM Standards and is a NI 43-101 compliant Inferred Mineral Resource, as defined in the Technical Report filed on SEDAR, February 12, 2003.

All sample preparation was undertaken by McPhar Geoservices (Phil) Inc at its General Santos facility in Southern Mindanao. McPhar is an ISO 9001 certified laboratory. Drilling and adit channel samples are pulverized and 200 gram sub samples are sent to McPhar Geoservices (Phil) Inc in Manila (ISO 9001 certified laboratory) for analysis using the FA 50/SAAS method (fire assay with atomic absorption finish) for gold, and conventional wet chemical methods for copper. The Laboratory mentioned above provides independent analytical services to the Company on normal commercial terms.

For further information relating to the historical resource and the geological setting, readers are referred to SUR technical report, specifically "TBoli Group of Properties" pages 33 - 49, that is published and available on - news release dated February, 12, 2003. It is the opinion of the qualified person that all geological information in the report, as it relates to the T'Boli gold-silver project, is current.

On behalf of the board of directors,

John D. Anderson, Chairman

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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