VANCOUVER, BRITISH COLUMBIA, Aug 01, 2013 (Marketwired via COMTEX) — As a result of a review by the British Columbia Securities Commission (the “BCSC”), Cayden Resources Inc. /quotes/zigman/1554410 CA:CYD +1.94% (pinksheets:CDKNF) (“Cayden” or the “Company”) is issuing this news release to clarify technical disclosure relating to its Morelos Sur and El Barqueno mineral projects. The Company refers to the following clarifications and corrections made to the Company’s website, corporate presentation and fact sheet (the “Website Materials”):
— The Website Materials previously included references to the economics of
adjacent mineral properties, which is not permitted under NI 43-101
without including certain additional disclosure. Therefore similar
economics cannot be inferred about Cayden’s property without Cayden
first completing an economic assessment on its own property. These
references have been deleted.
— The Website Materials stated that Cayden’s management had been
responsible for discovery of a 5+ million ounce gold deposit. This was
clarified to emphasize that this past success was in reference to
management’s involvement with another issuer and not Cayden or its
projects. Cayden’s current resources are described in the fourth bullet
below.
— The Website Materials contained a link to the technical report for the
Morelos Sur project filed on SEDAR on November 30, 2010 which should
have linked to the amended and restated technical report filed on
January 28, 2011.
— Disclosure in the Website Materials of the Morelos Sur resource did not
include certain disclosures required under NI 43-101 and made reference
to gross metal content. The references to the Morelos Sur resource has
been replaced by the following disclosure, “The Morelos Sur project
contains an NI 43-101 compliant inferred mineral resource of 1.5 million
tonnes at 1.66 g/t Au using a 0.4 g/t cut-off grade (representing
approximately 89,000 ounces of Au).”
— Disclosure in the Website Materials included references to resources
contained within adjacent, non-Cayden properties. The disclosure of
these resources was non-compliant because it did not include the
appropriate resource/reserve categories and was disclosed solely the
form of metal content. This disclosure has been removed.
— Disclosure in the Website Materials about the Morelos Sur resource did
not properly disclose the applicable resource categories as required by
NI 43-101. The disclosure now clearly states the resource under its
appropriate categories.
— Disclosure in the Website Materials made reference to a historic
resource on the El Barqueno project without providing all the
accompanying disclosure required by NI 43-101. The existing disclosure
has now been augmented with disclosure from the Company’s last AIF to
state that historic resources (originally disclosed by Cayden as NI 43-
101 non-compliant), related to undeveloped deposits, do not provide any
increased probability that new discoveries will be made or that new
discoveries can be economically developed. A Qualified Person has not
done sufficient work to classify the historical estimate at El Barqueno
as current mineral resources and the Company is not treating the
historical estimate as current mineral resources.
— Disclosure in the Website Materials included a statement whereby the El
Barqueno project was described as having the potential for a “multi-
million ounce gold deposit” on a “district scale”. These statements
require additional disclosure, which clarify that the resource potential
at El Barqueno is conceptual in nature, that there has been insufficient
exploration to define a mineral resource and that it is uncertain if
further exploration will result in the target being delineated as a
mineral resource. This potential has been determined by the Company’s
reconnaissance and surface work which has outlined a target area 1.5 km
in length defined by mineralized trenches.
— The Website Materials do not consistently identify the Qualified Person
for each of the Company’s mineral properties and does not adequately
disclose the Qualified Person’s relationship to the Company. David
Hladky, P. Geo., an employee of the Company, is the Qualified Person
with respect to NI 43-101 for Morelos Sur and El Barqueno projects which
has been clarified in the Website Materials.
In addition to the foregoing, the Company concluded that based on work done at Morelos Sur and El Barqueno that new or updated 43-101 compliant technical reports are required and such reports are now underway. The Company expects to file them at www.sedar.com on or before August 31, 2013.
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 in Mexico. 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, 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
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)
[email protected]
www.caydenresources.com
SOURCE: Cayden Resources Inc.
mailto:[email protected]
http://www.caydenresources.com
