Cayden Resources Inc.

Cayden Resources Inc.

August 22, 2011 10:02 ET

Cayden Resources Discovers New Mineralized Zone at Morelos Sur Gold Property and Provides Update on Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 22, 2011) - Cayden Resources Inc. (TSX VENTURE:CYD) ("Cayden" or the "Company") is pleased to announce that it has received additional results from its ongoing drill program at the Morelos Sur Gold property. To date, Cayden has drilled 19,786 meters in 91 drill holes; with an additional six holes currently pending assay (please see map at for drill hole locations). Of the 91 holes drilled, 56 have been core and 35 have been reverse circulation (RC). Results to date are from the Mina Verde, Bolinchi areas and results pending are from the La Hormiga target.

Recent drilling results include drill hole LCR0024, located approximately 500 meters northeast of the Mina Verde area ("Canyon Zone"), which intercepted 11.8 meters of 1.06 g/t Au and 49.7 g/t Ag which has significantly more silver than what has been previously encountered at Mina Verde. At Mina Verde additional drilling encountered mineralization to the west (LCRC0067: 22 meters @ 1.18 g/t Au; LCD0071: 11.9 meters of 2.27 g/t Au) east (LCR0032: 5 meters of 3.96 g/t Au and six meters of 1.13 g/t Au). At Bolinchi, approximately two kilometers to the south of Mina Verde, follow up drilling to previously released hole LCDD0002 (13 meters of 0.90 g/t Au), encountered mineralization in holes LCRC0035 (24 meters of 0.71 g/t Au) and hole LCD0062 (12 meters of 0.51 g/t Au) in higher level volcanic rocks, which indicates a new kind of mineralization besides the better known mineralization found near intrusive contacts.

New Intercepts from Morelos Sur Drilling

Mina Verde Area
Hole ID From To Width Grade (Au) Grade (Ag)
LCDD0024 239.8 251.6 11.8 1.06 49.7
LCRC0032 23 28 5 3.96 <10
LCRC0032 40 46 6 1.13 <10
LCRC0066 126 143 17 0.68 <10
LCRC0067 21 43 22 1.18
LCDD0071 152.6 164.5 11.9 2.27 12
LCDD0073 205.5 211.5 6 0.5 28
LCDD0074 22.45 27.25 5 0.96 38
LCRC0081 34 39 5 1.86 15
LCRC0082 40 49 9 0.83 <10
Bolinchi Area
Hole ID From To Width Grade (Au) Grade (Ag)
LCRC0035 100 124 24 0.71 <10
LCRC0062 51 63 12 0.51 <10

To view Drill Hole Location map please click on the following link:

In addition to drilling, Cayden has constructed extensive drill roads and pads on its Mina Verde and La Hormiga targets, in preparation for further drilling to follow up on the results obtained from extensive geochemical and geophysical survey data.

Cayden has been actively surface sampling the La Magnetita anomaly in the northwest portion of the property where stream sediment samples have consistently encountered anomalous gold. These results are encouraging as they are coincident with the largest untested magnetic anomaly in the Guerrero district.

Cayden's near term plans at the Morelos Sur Gold project include continued drilling at the La Hormiga target, as well as the Las Calles target and preparation to drill the La Magnetita for a January 2012 drill program. A second phase of drilling is also being designed to follow up on the successful intercepts seen from Morelos Sur to date.

Nevada Project Update

Cayden's acquisition of the highly prospective, silver-gold Quartz Mountain project located in Nevada, USA, is near completion. The company is in the process of permitting over 40 drill targets to extensively test several high-grade silver and gold targets which all have historical workings on them. Drilling is expected to commence in September 2011.

Wildcat Project Update

Cayden is in the process of receiving drill permits for its Wildcat project located in British Columbia, Canada. The Wildcat property's program is based on following up on past drill results and testing several geophysical targets in an area where significant mineralization has already been discovered through work completed by Cayden earlier this year. Cayden's focus with this program is to find higher grade mineralized zones.

President and CEO Ivan Bebek states: "Cayden is looking forward to extensive exploration programs on its three different projects. We are very encouraged with the data we have been able to gather in Mexico from the Morelos Sur Gold project to date. Commencement of drilling on our highly prospective Nevada projects offers our shareholders the opportunity to benefit from the discovery of significant silver/gold deposits."

On Behalf of the Board,

Ivan Bebek, President and CEO


Ben Gelber, P. Geo. is the Qualified Person with respect to NI 43-101 at the Morelos Sur Gold project.


All core is drilled at HQ or NQ diameter and is sawed or split into equal halves on site. All samples are assayed using standard 30 gram fire assay with atomic absorption finish by Acme Labs in Vancouver, Ca. QA/QC programs using internal standard samples, field and lab duplicates, re-assays, and blanks indicate good accuracy and precision in a large majority of standards assayed. Intercepts were calculated using a minimum of a 0.2 g/t cut off at beginning and end of the intercept and allowing for no more than six consecutive samples (six meters) of less than 0.2 g/t Au. The Company has not yet determined the true width for each hole, but based on previous drilling, most of the true widths at Mina Verde are believed to be at least 50% of the drilled widths.

About Cayden Resources

Cayden is a well financed junior mining company focused on delivering shareholder value through the acquisition, exploration and development of precious metal projects located throughout the Americas. The management team at Cayden is highly experienced with an impressive track record of success in the discovery, development and financing of mineral projects.
Cayden is also strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighboring communities. Cayden trades on the TSX Venture Exchange under the symbol "CYD".

More information about Cayden is available at

Forward Looking and other Cautionary Information

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

Neither the TSX Venture Exchange nor any other regulatory authority accepts responsibility for the adequacy or accuracy of this release.

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