Cayden Resources Receives $7.88 Million and Provides Corporate Update
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/01/13 -- Cayden Resources Inc. (TSX VENTURE: CYD) ("Cayden" or the "Company") is pleased to announce that it has received the first payment of $7.88 million USD from Desarrollos Mineros San Luis, S.A. de C.V. ("DMSL") as a result of the previously announced sale of 2,492 hectares of non core landholdings of the Morelos Sur East concession.
The second and final payment of $7.88 million USD for the Morelos Sur East Concession will be paid upon the completion of the subdivision process which is anticipated for later in 2013.
Cayden's remaining 14,584 hectares of the concession includes the Las Calles target area which Cayden plans to divest, and the La Magnetita target where Cayden is currently in the middle of a 5,000 meter drill program.
Cayden recently incorporated a 3-D magnetic inversion model enabling targeting of a magnetic stock under much of the high-grade La Magnetita gold-in-soil and gold-in-rock anomalies. This is significant as the majority of mineralization in the district occurs within one kilometer of similarly buried stocks. Cayden is targeting projections of known gold-bearing structures at their intersection points with the stocks.
Dan McCoy, Chief Geologist commented, "We are seeing the same geologic ingredients at La Magnetita that have combined elsewhere to create the large resources present in the Guerrero Gold Belt."
During the past six months, significant reconnaissance exploration has been completed at Cayden's El Barqueno property with the completion of an airborne VTEM survey and geological mapping programs. The results of the programs suggest prospectivity over a much greater area and at greater depths than previously revealed by historic mining and drilling data. In particular, mapping revealed the presence of a prospective host rock unit, "the Barqueno pyroclastic sequence", which is up to 350 meters thick. Historic mining and drilling only penetrated the top 50-100 meters of the pyroclastic sequence in small areas of the large target area, suggesting that additional resources may also extend at depth. Significant hydrothermal alteration in this unit was mapped in several previously undrilled zones. The mapping and geophysics also indicate that other outcropping zones are likely part of the same mineralized structure suggesting potential for mineralization over 8 kilometers of strike length.
Dan McCoy, Chief Geologist commented, "The results from the geological mapping and geophysical data is impressive, indicating the potential for a discovery of a major gold deposit or deposits."
Cayden has already begun extensive surface exploration programs at El Barqueno with drilling planned to commence early in the second quarter.
Ivan Bebek, Cayden Resources CEO commented: "Cayden is very pleased to receive a non-dilutive injection of capital into its treasury during difficult times in the capital markets through the divestiture of a non-core asset. This places the Company in an excellent position to create value for shareholders through the continued exploration at both of its projects. We continue to be very encouraged by the results we are seeing at La Magnetita and look forward to the commencement of drilling at El Barqueno. We plan to be efficient and judicious in how our treasury is spent and we will also have an opportunity to receive additional non-dilutive cash from the possible sale of our Las Calles concession."
On Behalf of the Board,
Ivan Bebek, President and CEO
About Cayden Resources - Cayden is a junior mining company focused on delivering shareholder value through the acquisition, exploration and development of precious metal projects located in North America. 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". For more information on Cayden Resources, please visit our website at www.caydenresources.com.
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.
Contacts:
Cayden Resources Inc.
Ivan Bebek
President and CEO
778-729-0600 or Toll Free 800-863-8655
604-683-8194 (FAX)
info@caydenresources.com
www.caydenresources.com