In April of 2012, Cayden acquired an option to earn a 100% interest in the 9800 hectare El Barqueño Gold Property (“El Barqueño” or the “Property”).
The Property is approximately 110 km west of Guadalajara in the state of Jalisco, Mexico
Cayden can acquire 100% of El Barqueño by making option payments to a subsidiary of Grupo Mexico over a three year period aggregating US $8 million (plus recoverable VAT) with payments of only $2.1 million in the first 24 months.
The Option is subject to a 1.5% NSR (4% on a portion of the Property) and annual advance royalty obligations after 24 months from option exercise if commercial production has not commenced by then Cayden’s plan will first focus on applying modern grid based geochemical and geophysical exploration techniques to the property, after which time a comprehensive drilling program will be designed.
The El Barqueño property contains significant underexplored areas of gold mineralization near areas of past production and other deposits
The geology consists of andesitic volcanic rock, which host Au-Ag-(Cu-Pb-Zn) mineralization hosted in an extensive network of veins with very large and pervasive alteration halos. The structures hosting these veins, trend from E to NE and covers a known area of over 13 km in an EW direction by over to 4 km wide in a NS direction (view map)
The Council of Mineral Resources, a branch of the government of Mexico, undertook exploration and mining activities in the mid 1980’s, producing approximately 250,000 ounces of gold using heap leach technology from two separate small pits that make up only a very small portion of the mapped mineralization
Grupo Mexico’s subsidiary, IMMSA, acquired the Property in 1999 and subsequently drilled below the existing pits and on other specific known prospects
In an internal report dated January 9, 2005 (made available to Cayden), IMMSA defined a historical resource of approximately 2,400,000 tons at an average grade of 3.62 g/t gold, equivalent to about 290,000 ounces of gold over several prospects on the property
Cayden’s examination of long sections and block models from this exploration effort suggests:
a) that the block model was conservatively constructed
b) that it appears that a polygonal model was employed
c) that the holes were incompletely assayed (only vein intercepts), and
d) that mineralization is open in several directions on most of the prospects
Cayden Resources Inc. © 2010 . All Rights Reserved.