Cadan Resources Corporation

TSX VENTURE : CXD
FRANKFURT : AOMZ25


Cadan Resources Corporation

November 13, 2012 09:15 ET

Cadan Resources Corporation: Announcement by Mining Group Limited; New Gold System Identified at Comval

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 13, 2012) - Cadan Resources Corporation (TSX VENTURE:CXD)(FRANKFURT:AOMZ25) ("Cadan") advises that Mining Group Limited (ASX:MNE) ("Mining Group") announced it has identified a high grade gold bearing vein system at the Taub prospect at the Comval Copper and Gold Project (Comval Project), located 90 km north of Davao City, Mindanao, in the Philippines. The Taub prospect is approximately 7.5 km north of the recently discovered Tagpura North target (see Figure 1). Mining Group's news release is reproduced in part 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).

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/cxd-1113b-fig1.pdf.

Highlights

  • New high grade quartz vein system identified at Mining Group's Taub prospect, with trench samples returning up to 52.45 g/t Au and 169.70 g/t Ag including 4.00 m at 17.75 g/t Au and 51.45 g/t Ag from CCPCH00001.
  • Gold bearing quartz veins mapped and sampled over 300 m along strike within a 200 m wide structural corridor including grades of up to 39.84 g/t Au and 36.30 g/t Ag, 31.96 g/t Au and 56.50g/t Ag and 31.19g/t Au and 64.50 g/t Ag.

Mining Group Managing Director Mr Zeff Reeves, said: "The mapping and sampling we have conducted at the Taub prospect was initially designed to follow up historical rock chip sampling. These first pass results are promising, having identified a new high grade gold system.

"The work we have done so far has identified narrow, high grade gold bearing quartz veins at the surface. This new gold system occurs over a significant strike distance within a wide structural zone, and also has continuous mineralisation occurring within the veins sampled.

"Some of the grades we have seen here are very exciting given this is the first work we have carried out on these prospects and we will be working hard over the next few weeks to further understand the area so we can commence drilling this month. Further assays from the remaining trenches are expected over the coming weeks which will help with drill targeting.

"We are doing similar work at our Ugpo prospect further to the west and aim to drill in this area before the end of the year as well. With multiple prospects, new discoveries, and a maiden JORC compliant resource, Mining Group is very well placed to continue its growth," added Mr Reeves.

Mining Group has undertaken a systematic trenching, mapping and sampling program at Taub. The purpose of this work is to delineate the strike extent and grade continuity of previously identified quartz veins from historic rock chip sampling and the existence of small artisanal workings.

To date the work has identified a 200 m wide structural corridor at Taub that has gold mineralisation identified over 300 m along strike and open in all directions. Ongoing trenching and sampling work will be carried out in the next four weeks, with an aim to commence drilling by the end of November.

Taub Trenching and Rock Chip Sampling

Mining Group has received results for two across strike trenches, CCPCH00001 and CCPCH00002, installed at the Taub prospect and rock chip samples taken within seven small scale mining adits. Significant gold mineralisation has been identified in multiple east-northeast striking quartz veins ranging in thickness from 10 cm to over 1 m. The veins dip moderately (45°) to the north west and occur within a number of sub-parallel mineralised structures associated with shearing and faulting. Significant results are presented below:

Table 1 - Significant results from Taub trenching and rock chip sampling.

Tunnel Name/ Trench No. Sample Location From (m) To (m) Easting Northing Elevation Au
(ppm)
Ag
(ppm)
Esoy Tunnel Vein NA NA 841671 837844 231 5.13 1.9
Esoy Tunnel Foot Wall NA NA 841671 837844 231 0.99 0.9
Angla Tunnel 5 m from Portal, Hanging Wall NA NA 841644 837880 210 2.75 1.2
Angla Tunnel 5 m from Portal, Vein NA NA 841644 837880 210 5.04 13.9
Angla Tunnel 5 m from Portal, Footwall NA NA 841644 837880 210 0.84 0.7
Angla Tunnel 7.50 m from Portal, Hanging Wall NA NA 841644 837880 210 0.55 <0.5
Angla Tunnel 7.50 m from portal Vein NA NA 841644 837880 210 3.12 8.3
Angla Tunnel 11.0 m from portal Hanging Wall NA NA 841644 837880 210 0.78 0.8
Angla Tunnel 11.0 m from portal Vein NA NA 841644 837880 210 6.18 15.1
Francisco Stockpile Stockpile # 1 NA NA 841750 837876 2.75 3.5
Francisco Stockpile Stockpile # 2 NA NA 841750 837876 5.51 5.5
Esoy Lareta Tunnel #3 36.0 m from Portal, HANGING WALL NA NA 841712 837860 203 0.81 2.2
Esoy Lareta Tunnel #3 41.0 m from Portal, VEIN NA NA 841712 837860 203 2.89 9.3
Esoy Lareta Tunnel #3 45.0 m from Portal, VEIN NA NA 841712 837860 203 10.71 27.1
Esoy Lareta Tunnel #3 50.0 m from Portal, VEIN NA NA 841712 837860 203 0.82 1.8
Esoy Lareta Tunnel #3 66.0 m from Portal, HANGING WALL NA NA 841712 837860 203 0.66 5
Esoy Lareta Tunnel #3 66.0 m from Portal, VEIN NA NA 841712 837860 203 1.45 2.4
Simon Outcrop OUTCROP #1 NA NA 841749 837886 191 0.94 1.3
Simon Outcrop OUTCROP #2 NA NA 841749 837886 191 0.69 0.8
Into Tunnel Hanging wall right side wall 12.0 m from portal NA NA 841940 837888 157 4.51 9.5
Into Tunnel Footwall right side wall 12.0 m from portal NA NA 841940 837888 157 0.15 2.3
Into Tunnel Hanging wall left side wall 12.0 m from portal NA NA 841940 837888 157 0.36 1.8
Into Tunnel Footwall right side wall 12.0 m from portal NA NA 841940 837888 157 31.96 56.5
Into Tunnel left side wall 12.0 m from portal NA NA 841940 837888 157 0.34 2
Into Tunnel right side wall 12.0 m from portal NA NA 841940 837888 157 0.14 1
Into Tunnel right side wall 12.0 m from portal NA NA 841940 837888 157 31.19 64.5
Into Tunnel left side wall 12.0 m from portal NA NA 841940 837888 157 4.97 14.7
Amancio Tunnel VEIN NA NA 841903 837977 140 1.1 1.9
Alma Tunnel 0-Portal VEIN NA NA 841779 838051 178 5.56 5.9
Alma Tunnel 2.0 m from portal VEIN NA NA 841779 838051 178 39.84 36.3
Alma Tunnel 6.0 m from portal HANGING WALL NA NA 841779 838051 178 0.64 2.3
Alma Tunnel 10.0 m from portal VEIN NA NA 841779 838051 178 1.66 4.3
Lolong Tunnel 0-Portal cross-cut VEIN NA NA 841824 837959 180 20.52 51.8
Lolong Tunnel 11.0 meters from portal X-Cut VEIN NA NA 841824 837959 180 0.57 1.2
TRENCH#1 CCPCH 00001 40.00 44.00 841683 837840 210 17.75 51.45
TRENCH#1 CCPCH 00001 102.50 103.00 841653 837891 196 3.26 10
TRENCH#2 CCPCH 00002 NA NA 841779 837886 173 3.46 3.2
TRENCH#2 CCPCH 00002 56.00 58.00 841764 837906 197 0.78 <0.5
TRENCH#2 CCPCH 00002 86.00 89.00 841749 837924 210 2.75 1.17
TRENCH#2 CCPCH 00002 100.00 100.70 841740 837936 210 1.25 0.7

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/cxd-1113b-fig2.pdf.

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/cxd-1113b-fig3.pdf.

All samples were collected continuously along the trenches and where channel samples were taken in adits as nominally 1.00 m or 2.00 m samples. All samples were geologically described and each channel was geologically mapped. All 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 for all sampling at Taub.

In addition to this ongoing surface sampling activity at Taub, Mining Group has also identified a similar structural corridor, artisanal workings and outcropping quartz veins at Ugpo and is undertaking systematic trench sampling across the target and expects results over the next four to six weeks.

The technical information in this news release 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 www.sedar.com.

APPENDIX 1 - ROCK CHIP AND TRENCHING ASSAY RESULTS FROM TAUB

Sample ID From (m) To (m) Easting Northing Elevation Au (ppm) Cu (ppm) Pb (ppm) Zn (ppm) Ag (ppm)
A-44846 841671 837844 231 0.31 164 14 122 0.7
A-44847 841671 837844 231 5.13 33 25 40 1.9
A-44848 841671 837844 231 0.99 68 11 70 0.9
A-44873 841363 836418 235 <0.01 127 17 167 <0.5
A-44874 841363 836418 235 0.07 59 13 32 0.6
A-44875 841363 836418 235 0.01 185 12 173 <0.5
A-44876 841373 836409 233 0.15 210 18 25 0.8
A-44877 841373 836409 233 0.04 180 15 21 <0.5
A-44878 841373 836409 233 <0.01 84 10 129 <0.5
A-44879 841262 836084 242 <0.01 63 7 16 <0.5
A-44880 0.00 1.00 841265 837904 234 0.01 39 21 54 <0.5
A-44881 1.00 2.00 841265 837904 234 0.01 28 15 45 <0.5
A-44882 2.00 3.00 841265 837904 234 0.04 27 14 42 <0.5
A-44883 3.00 4.00 841265 837904 234 0.02 50 16 53 <0.5
A-44884 4.00 5.00 841265 837904 234 0.02 32 14 47 <0.5
A-44885 5.00 6.00 841265 837904 234 0.06 34 15 64 <0.5
A-44886 6.00 7.00 841265 837904 234 0.06 14 18 30 <0.5
A-44887 7.00 8.00 841265 837904 234 0.02 31 36 90 <0.5
A-44888 8.00 9.00 841267 835912 232 0.03 26 39 59 <0.5
A-44889 0.00 1.00 841186 836644 265 0.01 57 6 52 <0.5
A-44890 1.00 2.00 841186 836644 265 0.02 52 10 43 <0.5
A-44891 841644 837880 210 2.75 31 11 48 1.2
A-44892 841644 837880 210 5.04 33 23 28 13.9
A-44893 841644 837880 210 0.84 44 22 78 0.7
A-44894 841644 837880 210 0.55 47 18 57 <0.5
A-44895 841644 837880 210 3.12 40 10 26 8.3
A-44896 841644 837880 210 0.3 56 8 67 <0.5
A-44897 841644 837880 210 0.78 12 7 25 0.8
A-44898 841644 837880 210 6.18 13 7 15 15.1
A-44899 841644 837880 210 0.04 59 14 65 <0.5
A-44900 841750 837876 2.75 38 12 30 3.5
A-53755 841750 837876 5.51 42 12 24 5.5
A-53756 841712 837660 203 3.07 21 22 22 7.5
A-53764 841712 837860 203 0.81 185 21 83 2.2
A-53765 841712 837860 203 0.3 133 10 41 0.9
A-53766 841712 837860 203 2.89 15 68 15 9.3
A-53767 841712 837860 203 10.71 15 27 22 27.1
A-53768 841712 837860 203 0.11 223 9 96 <0.5
A-53769 841712 837860 203 0.82 26 8 17 1.8
A-53770 841712 837860 203 0.66 518 37 40 5
A-53771 841712 837860 203 1.45 186 45 22 2.4
A-53772 841712 837860 203 0.24 1095 22 90 0.9
A-53773 841749 837886 191 0.94 207 8 86 1.3
A-53774 841749 837886 191 0.69 238 16 92 0.8
A-53813 841673 837841 232 0.02 128 17 78 <0.5
A-53814 841673 837841 232 0.02 148 27 72 <0.5
A-53815 841673 837841 232 <0.01 153 14 84 <0.5
A-53816 841673 837841 232 <0.01 183 15 86 <0.5
A-53817 841673 837841 232 <0.01 98 14 64 <0.5
A-53818 841673 837841 232 0.01 93 15 68 <0.5
A-53819 841673 837841 232 <0.01 96 11 63 <0.5
A-53820 841673 837841 232 <0.01 98 18 61 <0.5
A-53821 841673 837841 232 <0.01 103 16 73 <0.5
A-53788 841903 837977 140 <0.01 145 7 71 <0.5
A-53789 841903 837977 140 <0.01 94 24 52 <0.5
A-53790 841903 837977 140 <0.01 137 20 75 <0.5
A-53791 841903 837977 140 <0.01 190 14 82 0.7
A-53792 841903 837977 140 <0.01 153 13 91 <0.5
A-53793 841903 837977 140 0.01 160 17 83 <0.5
A-53794 841903 837977 140 <0.01 167 18 89 <0.5
A-53795 841903 837977 140 0.5 135 24 111 3.7
A-53796 841940 837888 157 4.51 64 52 54 9.5
A-53797 841940 837888 157 0.15 161 30 94 2.3
A-53798 841940 837888 157 0.36 76 25 71 1.8
A-53799 841940 837888 157 31.96 149 456 42 56.5
A-53800 841940 837888 157 0.34 169 45 114 2
A-53801 841940 837888 157 0.14 337 31 79 1
A-53802 841940 837888 157 31.19 84 583 73 64.5
A-53803 841940 837888 157 4.97 71 650 105 14.7
A-53828 841903 837977 140 0.12 94 29 64 <0.5
A-53829 841903 837977 140 0.4 21 18 30 0.6
A-53830 841903 837977 140 0.05 92 19 65 <0.5
A-53831 841903 837977 140 0.06 88 16 66 <0.5
A-53832 841903 837977 140 0.44 10 23 38 1
A-53833 841903 837977 140 0.06 75 15 68 <0.5
A-53834 841903 837977 140 0.03 83 20 62 <0.5
A-53835 841903 837977 140 1.1 3 10 19 1.9
A-53836 841903 837977 140 0.04 84 20 70 <0.5
A-53839 841779 838051 178 0.34 263 28 116 <0.5
A-53840 841779 838051 178 5.56 77 23 38 5.9
A-53841 841779 838051 178 0.13 274 15 118 <0.5
A-53842 841779 838051 178 0.09 244 17 111 <0.5
A-53843 841779 838051 178 39.84 58 50 38 36.3
A-53844 841779 838051 178 0.34 288 22 118 <0.5
A-53845 841779 838051 178 0.64 82 15 38 2.3
A-53846 841779 838051 178 0.42 26 9 16 2.4
A-53847 841779 838051 178 0.11 72 8 61 0.5
A-53848 841779 838051 178 0.2 267 18 112 <0.5
A-53849 841779 838051 178 1.66 82 18 35 4.3
A-53850 841779 838051 178 0.44 216 13 82 <0.5
A-53851 841779 838051 178 0.16 253 17 91 0.5
A-53852 841779 838051 178 0.22 40 7 30 <0.5
A-53853 841779 838051 178 0.05 35 15 49 <0.5
A-53854 841824 837959 180 0.19 222 49 128 0.9
A-53855 841824 837959 180 20.52 25 129 49 51.8
A-53856 841824 837959 180 0.11 39 12 63 <0.5
A-53857 841824 837959 180 0.36 192 22 91 <0.5
A-53858 841824 837959 180 0.4 25 12 21 0.8
A-53859 841824 837959 180 0.17 56 14 47 <0.5
A-53860 841824 837959 180 0.02 82 12 80 <0.5
A-53861 841824 837959 180 0.57 8 28 22 1.2
A-53862 841824 837959 180 0.27 29 28 35 <0.5
A-53868 841682 837841 227 52.45 58 578 33 169.7
A-53872 0.00 2.00 841704 837811 206 0.03 62 17 57 <0.5
A-53873 2.00 4.00 841706 837812 202 0.02 68 23 64 <0.5
A-53874 4.00 6.00 841707 837812 203 0.02 81 18 62 <0.5
A-53875 6.00 8.00 841709 837815 204 0.02 63 16 62 <0.5
A-53876 8.00 9.00 841707 837815 209 0.02 76 21 66 <0.5
A-53877 9.00 11.00 841707 837815 209 <0.01 250 17 102 <0.5
A-53878 11.00 12.00 841707 837815 208 <0.01 64 18 59 <0.5
A-53879 12.00 14.00 841701 837817 209 0.01 66 14 57 <0.5
A-53880 14.00 16.00 841700 837817 211 0.02 72 21 65 <0.5
A-53881 16.00 18.00 841699 837819 208 0.01 46 9 39 <0.5
A-53882 18.00 20.00 841699 837821 211 0.01 71 21 63 <0.5
A-53883 20.00 22.00 841696 837824 212 0.01 84 20 72 <0.5
A-53884 22.00 24.00 841694 837826 212 <0.01 70 19 64 <0.5
A-53885 24.00 26.00 841694 837828 213 0.01 69 13 59 <0.5
A-53886 26.00 28.00 841692 837830 212 0.02 72 21 62 <0.5
A-53887 28.00 30.00 841691 837832 211 0.02 73 22 64 <0.5
A-53888 30.00 32.00 841689 837833 212 0.02 59 18 61 <0.5
A-53889 32.00 34.00 841688 837834 214 0.03 66 22 71 <0.5
A-53890 34.00 36.00 841687 837837 212 0.08 58 14 63 <0.5
A-53891 36.00 38.00 841686 837837 211 0.1 38 10 51 <0.5
A-53892 38.00 40.00 841685 837838 211 0.16 84 20 70 <0.5
A-53893 40.00 41.00 841683 837840 210 0.34 356 31 108 1.1
A-53894 41.00 42.00 841683 837840 210 0.14 151 32 49 0.6
A-53895 42.00 44.00 841681 837843 209 9.1 104 334 49 17.5
A-53896 44.00 46.00 841680 837844 207 0.06 76 13 56 0.5
A-53897 46.00 48.00 841679 837846 210 0.06 258 20 113 <0.5
A-53898 48.00 48.60 841679 837846 210 0.06 87 16 57 <0.5
A-53899 48.60 49.10 841679 837846 210 0.84 21 51 23 1.2
A-53900 49.10 50.00 841677 837847 210 0.08 93 19 58 <0.5
A-53901 50.00 52.00 841676 837849 208 0.23 76 32 59 <0.5
A-53902 52.00 53.00 841677 837852 209 0.08 242 27 117 <0.5
A-53903 53.00 54.00 841677 837852 209 0.02 169 25 54 <0.5
A-53904 54.00 56.00 841676 837852 208 0.06 78 16 53 <0.5
A-53905 56.00 58.00 841675 837852 211 0.02 135 20 73 <0.5
A-53906 58.00 60.00 841674 837854 208 0.01 172 12 88 <0.5
A-53907 60.00 62.00 841672 837855 209 0.06 242 28 87 <0.5
A-53908 62.00 64.00 841670 837857 209 0.02 235 14 94 <0.5
A-53909 64.00 66.00 841670 837859 210 0.01 168 26 83 <0.5
A-53910 66.00 68.00 841670 837861 213 0.02 199 18 98 <0.5
A-53911 68.00 70.00 841668 837862 211 0.08 128 24 78 <0.5
A-53912 70.00 72.00 841669 837865 216 0.02 149 24 78 <0.5
A-53913 72.00 74.00 841667 837866 214 0.02 151 17 86 <0.5
A-53914 74.00 76.00 841665 837867 215 0.03 147 19 67 <0.5
A-53915 76.00 78.00 841665 837869 216 0.04 97 26 53 <0.5
A-53916 78.00 80.00 841663 837870 216 0.02 90 23 55 <0.5
A-53917 80.00 82.00 841662 837872 218 0.02 60 7 46 <0.5
A-53918 82.00 84.00 841660 837873 218 0.02 74 12 46 <0.5
A-53919 84.00 86.00 841659 837876 217 0.02 59 19 42 <0.5
A-53920 86.00 88.00 841659 837877 217 <0.01 71 14 49 <0.5
A-53921 88.00 90.00 841657 837881 214 0.01 83 18 47 <0.5
A-53922 90.00 92.00 841656 837884 213 <0.01 83 20 49 <0.5
A-53923 92.00 94.00 841655 837884 212 0.01 184 13 87 <0.5
A-53924 94.00 96.00 841655 837884 206 0.07 173 14 83 <0.5
A-53925 96.00 98.00 841655 837887 206 0.01 153 16 75 <0.5
A-53926 98.00 100.00 841654 837887 207 0.02 170 18 87 <0.5
A-53927 100.00 102.00 841653 837889 200 0.02 214 18 111 <0.5
A-53928 102.00 102.50 841653 837891 196 0.09 232 11 110 <0.5
A-53929 102.50 103.00 841653 837891 196 3.26 41 10 11 10
A-53930 103.00 106.00 841651 837892 190 0.09 100 21 90 <0.5
A-53931 841953 837684 160 0.01 126 14 63 <0.5
A-53932 841779 837886 173 3.46 21 33 3 3.2

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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