Cayden, through its wholly owned subsidiary LC Mines, holds an unencumbered 100% interest in the Morelos Sur Gold Project.
The Morelos Sur Gold Project is located in the Nukay mining district of central Guerrero State in southern Mexico, approximately 230kms south of Mexico City. The district currently hosts over 19 million oz Au between two separate projects, and provides an excellent platform for exploration and development. The Morelos Sur Gold Project contains an 80,000 oz NI 43-101 gold resource previous to Cayden's 2011 drilling. The company is currently running a surface exploration and drill program on the La Magnetita target.
Cayden recently sold a total of 2,492 hectares of the 17,076 hectare concession for a total cash consideration of $15,744,000 USD plus a royalty to Cayden, of which 50% has been paid and the balance is to be paid once the subdivided titles of the Morelos East Concession are registered in the name of DMSL (Goldcorp's Mexican subsidiary).
DMSL will acquire the portion subject to a reserved royalty in favour of Cayden plus the existing government royalty (2.5%). The reserved royalty to Cayden is a sliding scale royalty commencing after the first 250,000 ounces, starting at 0.75% and up to 1.75% when gold is over $2500/ounce.
Proven gold district with over 19 million ounces of gold
Located near major highway that connects Mexico City and Acapulco
Over 14,500 hectares of land in a prospective gold district
Low cost ore – In 2012, Goldcorp produced 340,400 oz Au at an average grade of 0.69 g/t* (cash cost of $551/oz) (Data from Goldcorp's Q4 2012 Financial Statements - February 15, 2013)
Established infrastructure in place including both power and water
Previous exploration programs included limited rock sampling, drilling and geophysical data.
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