Cadan Resources Corporation
TSX VENTURE : CXD
FRANKFURT : AOMZ25

Cadan Resources Corporation

May 28, 2012 19:35 ET

Cadan Resources Corporation: Comval Copper Discovery Reported by Mining Group Limited

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 28, 2012) - CADAN RESOURCES CORPORATION (TSX VENTURE:CXD)(FRANKFURT:AOMZ25) ("Cadan") advises that Mining Group Limited (ASX:MNE) ("Mining Group") has provided a drilling update and initial drilling results from the new 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% 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 approximately 6.2% of Mining Group's present issued capital (rising to approximately 15.8% 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).

Highlights

  • Following a review of historical geological, geochemical and geophysical data, Mining Group's exploration team has identified several new targets confirming the new exploration model
  • First hole at the new target, Bayag Bayag, BCPDH00001, intercepts 44.00m at 0.64% Cu from 39.00m, including 28.00m @ 0.88% Cu from 55.00m
  • Surface mapping indicates 700m long skarn alteration system including outcropping gossans
  • Mineralogy and scale indicates possibility of the existence of a large porphyry system

Overview

The first intercept at the Bayag Bayag target, and in particular the extensive and intense 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 orebody.

The assay results from the first of eight planned holes into the Bayag Bayag target have provided encouraging results that support an extensive drilling program at the site.

Hole BCPDH00001 intercepted over 100m of variably skarn altered limestone consisting of massive garnet, pyroxene, epidote pyrrhotite and visible copper mineralisation as chalcopyrite. The assays received to date have reported a downhole intercept of 44.00m @ 0.64% Cu from 39.00m, including 28.00m @ 0.88% Cu from 55.00m.

Three holes have been drilled at Bayag Bayag with another three currently being drilled. Drill core is being logged and cut for assay. Mining Group currently has a total of eight holes planned in the initial drilling program at Bayag Bayag in order to test the overall width and strike extent of this mineralisation. This will be done in conjunction with detailed ground magnetic surveying to further refine the exploration model.

The onsite exploration team has mapped surface mineralisation consisting of skarn alteration and gossans, with this potentially mineralised zone at present being identified over 700m of strike length. The nature and extent of the alteration mineral assemblage at Bayag Bayag indicates that the mineralising system is large and parallels can be drawn with many skarn/copper porphyry systems around the world. Skarn alteration is a common tool for exploration of larger porphyry mineralising systems.

Drilling progress at Bayag Bayag

Mining Group commenced drilling at the new Bayag Bayag target on BCPDH-00001on 4 April 2012. The initial drilling results are summarised below, with drilling complete on the first three holes, and a further three holes currently underway. Results have so far been received only for one hole.

Tagpura skarn and Maangob progress

Mining Group is also continuing drilling at the Tagpura and Maangob skarn targets over the coming months. To date a total of six holes have been completed at Tagpura for 1,700.8m and one hole at Maangob for 295.5m.

Results have been received for TCPDH00117 and TCPDH00018. Both holes intersected mineralisation, confirming the extension of the mineralised halo surrounding the skarn systems. A list of recent significant intercepts is given in Table 2. For a full list of historic significant intercepts refer to previous Mining Group Ltd announcement released on February 15, 2012.

Hole ID

TARGET
m East m North m RL Azimuth Dip EOH Depth
TCPDH 00117 TAGPURA 845810.00 827255.00 430.50 310 -70 200.00
TCPDH 00118 TAGPURA 845887.00 827505.00 535.00 310 -60 333.50
TCPDH 00119 TAGPURA 845640.00 827701.00 460.00 310 -60 279.60
TCPDH 00120 TAGPURA 845771.50 827635.00 534.00 310 -60 288.20
TCPDH 00121 TAGPURA 845787.00 827215.00 458.00 310 -80 349.50
TCPDH 00122 TAGPURA 845640.00 827701.00 460.00 130 -60 250.00
MCPDH-00001 MAANGOB 844800.00 828113.00 342.00 130 -60 295.50
BCPDH-00001 BAYAG BAYAG 845466.00 826457.00 468.00 270 -60 140.50
BCPDH-00002 BAYAG BAYAG 845542.25 826459.24 475.00 270 -60 237.50
BCPDH-00003 BAYAG BAYAG 845464.86 826414.58 490.00 270 -60 217.20

Table 1 - Drilling Summary for Comval Project, holes completed to date

LOCATION ORIENTATION Down hole Intersection (m) COMMENT
HOLEID PROSPECT EAST NORTH RL DEPTH
(m)
AZI-
MUTH
DIP From To Inter-
val
Cu% Au
g/t
Ag
g/t
TCPDH000117 TAGPURA 845810.00 827255.00 430.50 200.00 310 -70 110.00 134.00 24.00 0.41% - NSI for Au or Ag
TCPDH000118 TAGPURA 845787.00 827215.00 458.00 333.50 310 -80 164.00 180.00 16.00 0.50% - NSI for Au or Ag
BCPDH00001 BAYAG
BAYAG
845466.00 826457.00 468.00 270.00 -60 141 39.00 83.00 44.00 0.64% - - NSI for Au or Ag
BCPDH00001 BAYAG
BAYAG
845466.00 826457.00 468.00 270.00 -60 141 44.00 72.00 28.00 0.88% - - NSI for Au or Ag

Table 2 - Significant intercept table for drilling by Mining Group, results received to date. Significant intercepts calculated on a length weighted average using a 0.25% Cu cut off and 4m internal dilution.

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. 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.

For further information on Cadan Resources Corp. please visit our website at www.cadanresources.com, email us at info@cadanresources.com.

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 planned production, including the ability of the Company to achieve its targeted production outline due to regulatory, technical or economic factors. In addition, there are risks associated with estimates of resources, and there is no guarantee that a resource will have demonstrated economic viability as necessary to be classified as a reserve. There is no guarantee that additional exploration work will result in significant increases to resource estimates. The reader is referred to the Company'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 the Company's page on SEDAR at http://www.sedar.com.

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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