VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2012) - CADAN RESOURCES CORPORATION (TSX VENTURE:CXD)(FRANKFURT:AOMZ25) ("Cadan" or the "Company") is pleased to announce that the Company's Philippines affiliate, Tribal Mining Corporation (TMC), has received the Mines and Geosciences Bureau (MGB) Declaration of Mining Project Feasibility (DMPF), enabling the Company to COMMENCE COMMERCIAL MINING PRODUCTION at the T'Boli gold-silver mine within the Mineral Processing and Sharing Agreement (MPSA) No. 090-97-XI.
The T'Boli Project is now fully equipped, including a trained local workforce, a fully constructed and commissioned Carbon-In-Leach (CIL) gold-silver processing plant, gravity concentrator, electro-winning circuit, tailings storage facility and powerhouse.
This decision to become a gold producer is not based on a feasibility study of mineral reserves as defined by NI 43-101 and there is no certainty the proposed operation will be economically viable. The T'Boli property hosts a reported inferred mineral resource for T'Boli of 2.4Mt at 5.5 g/t Au and 21.0 g/t Ag, equivalent to 420,000 oz of gold and 1.6 million oz of silver (Independent Technical Report, Sabena and T'Boli Properties, Philippines, dated 23 December 2002 and filed on SEDAR on 12 February, 2003). In connection with the issuance of the DMPF, the MGB reviewed and verified information on the property regarding available resources, in addition to considering the environmental, social and economic requirements of the Philippines.
Cadan's President and CEO, Robert Butchart, stated:
"This is a tremendous success for Cadan shareholders as the Company transitions to become a gold producer and we are ready to commence operations immediately, the people are ready, the mill plant is ready and the underground development is ready for stoping.
This is also an exciting milestone for the Government, as it is the first DMPF to be granted in South Cotabato, Mindanao and the first to be granted in the Philippines since the recent Executive Order No. 79 by the President Aquino Administration.
Cadan's new management team has made these achievements possible since they took control in April, 2011. With the dynamic combination of local knowledge and technical expertise, we are confident that the Company and the community will prosper by responsible and productive mining."
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Qualified Person and Quality Control and Assurance
Technical aspects of this news release were prepared and verified by Howard Lahti, BSc Geology, MSc Geochemistry, PhD Litho-Geochemistry, Registered Professional Geoscientist of New Brunswick. Mr. Lahti is a consultant to Cadan. 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.
On behalf of the board of directors,
Robert Butchart, President / CEO
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 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.