Cadan Resources Corporation
TSX VENTURE : CNF

Cadan Resources Corporation

March 03, 2009 09:27 ET

Cadan's Bacterial Heap Leach Test Work Returns High Copper-Gold Recoveries

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2009) - CADAN RESOURCES CORPORATION (TSX VENTURE:CNF) (the "Company") is pleased to release initial results of its Bacterial Heap leach test work on two representative samples of mineralized material from drill core and from channel samples from mining benches of the existing open pit at its Tagpura porphyry copper-gold project, located in East Mindanao, Philippines.

Amenability test work was undertaken by Pacific Ore (Australia) Pty Ltd, a subsidiary of Pacific Ore Limited (a publicly listed company in Australia: www.pacificore.com.au.) using its proprietary technology "BioHeap™".



After 47 days, based on residue assays the results were:

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Mineralized Material Head Grade Head Grade Head Grade
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Au (ppm) Cu (%) Fe (%)
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Porphyry Bench 2 0.11 0.42 6.04
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Porphyry Skarn 0.66 1.96 19.20
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Recovery:

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Mineralized Material Recovery Au % Recovery Cu % Recovery Fe %
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Porphyry Bench 2 90.0 97.4 27.30
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Porphyry Skarn 93.7 85.5 14.3
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Significantly, these results indicate that the BioHeap™ leaching technology is suitable for the Tagpura porphyry copper-gold and porphyry skarn mineralized material.

Brett Taylor, President and CEO, said: "The high copper recoveries from this initial leach test work are regarded as "excellent" by Pacific Ore. Internal scoping studies are underway for a proposed on-site bacterial heap leach operation of up to two million tonnes per annum ("2Mt pa").

This approach offers the potential of early production and early cash flow with additional benefits being: lower capital costs; lower operating costs; enhanced global long-term competitiveness in copper-gold production and supply; limited environmental footprint; technology transfer; and improved skill training for professional, technical and non-technical people.

About The Tagpura Porphyry Copper-Gold Projects

At its Comval porphyry copper-gold prospects, the Tagpura porphyry copper-gold deposit has a "conceptual or order of magnitude" potential tonnage of some 1 billion tonnes to 1.7 billion tonnes with a potential grade range from 0.30% copper and 0.17 gpt gold to 0.7% copper and 0.31 gpt gold. The deposit outlined above remains strictly an exploration target in accordance with guidelines set out in NI 43-101, and the potential quantity and grade is strictly conceptual in nature. There has been insufficient exploration to date to define a mineral resource at this stage, and it is uncertain if future exploration will result in the delineation of a mineral resource.

About The Tagpura Porphyry Skarn

Drilling to date at the Tagpura porphyry skarn copper-gold zone has indicated a "conceptual or order of magnitude" potential tonnage range of some 10 million tonnes to 15 million tonnes, with a potential grade range from 0.50% copper and 0.20 g/t gold to 0.70% copper and 0.31 g/t gold. (see News Release dated Tuesday August 5, 2008.) The target outlined above remains strictly an exploration target in accordance with guidelines set out in NI 43-101, and the potential quantity and grade is strictly conceptual in nature. There has been insufficient exploration to date to define a mineral resource at this stage, and it is uncertain if future exploration will result in the discovery of a mineral resource.

Cadan also stated that it was pleased with these results at the Tagpura porphyry skarn as it demonstrated an additional style of mineralization that may be particularly suitable for "bacterial heap leaching" and early positive cash flow. The above results from the amenability tests suggest that the porphyry skarn material for copper-gold recovery by heap leaching. The Company is reviewing the applicability of such a bacterial heap leach operation for the prospect, with a start up capacity of two million tonnes per annum. A mine life of five to seven or more years is envisaged, although additional exploration is required to delineate a resource.

The porphyry skarn high grade target is located within an existing open pit. This enables the "box cut" mining method to be considered the most appropriate approach, particularly as there is no overburden to remove, and thus, mining costs should be optimized (see News Release dated Tuesday August 5, 2008).

INFORMATION PURPOSES ONLY

PACIFIC ORE LIMITED - "BIOHEAP™"

Pacific Ore is developing and commercializing the innovative BioHeap™ leaching process.

The use of bacteria for leaching metals is becoming an increasingly important alternative to conventional extraction processes for the mining industry.

Pacific Ore Limited has developed and patented a bacterial leach process for the extraction of base metals from sulphide ores stacked in pre-prepared heaps. This process is known as the BioHeap™ process and it involves the innovative combination of bacterial leaching and heaps for base metal extraction.

Pacific Ore's highly experienced technical and management team have been involved in the development of BioHeap™ for over 10 years.

Large scale trials, with both poly-metallic ores and ore types with a predominant metal, have demonstrated that high recoveries of nickel, copper, and cobalt can be achieved using Pacific Ore's proprietary bacteria and patented processes.

Pacific Ore's proprietary bacteria also have the potential to be applicable to refractory gold ores.

Pacific Ore's BioHeap™ technology offers the mining industry worldwide an opportunity to achieve a step change in capital and operating costs associated with the extraction of base metals from sulphide mineralization.

In addition to significantly lowering costs, the BioHeap™ process has a number of other advantages when compared with alternative processes, ie: reduced environmental impact, simple to operate, well suited to remote locations and produces high value products

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 National Instrument 43-101, and is the technical person responsible for this news release. The qualified person has verified the data disclosed in this news release.

For further information relating to the historical resource of the Comval Project, readers are referred to Technical Report, specifically "Deposit Types Comprising the Sabena Project page 9, that is published and available on www.sedar.com - news release dated February 12, 2003. It is the opinion of the qualified person that all information in the report, as it relates to the Tagpura, Ma-angob and Kalamatan belt, is current.

On behalf of the board of directors,

Brett Taylor, President & CEO

This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the timing of future activities by the Company, future anticipated exploration program results, the discovery and delineation of mineral deposits/resources, business and financing plans, potential mining scenarios, the success of mineral processing procedure and, business trends and future operating costs. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to, the state of the market for gold or other minerals that may be produced generally, recent market volatility, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. 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 the Company's page on SEDAR at 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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