Cayden Resources expand La Magnetita Target Area in Mexico

4 July 2012 (Last Updated July 4th, 2012 18:30)

Cayden Resources has received more than 2,000 additional assay results from its 100%-owned Morelos Sur Gold project in Guerrero State, Mexico.

Cayden Resources has received more than 2,000 additional assay results from its 100%-owned Morelos Sur Gold project in Guerrero State, Mexico.

The company said the results increase the area of the 100 parts per billion gold-in-soil geochemical anomaly to over 7.3km².

Cayden Resources president and CEO Ivan Bebek said the company is impressed with the size and strength of the La Magnetita hydrothermal system.

"As we complete more surface exploration, the target areas are consistently growing," said Bebek.

"We believe that we have an excellent chance of discovering a significant gold deposit with our drilling programs."

The new soils revealed extensive areas with highly elevated gold values, including north-south trending gold values of more than 500 ppb, with strike lengths of up to 1.6km, said Cayden.

The higher-grade anomalies are coincident with north-south intrusive dikes, iron oxide-quartz alteration and veining within the limestone.

The company is now drilling the areas of anomalous gold-in-soil and trenches in the western portion of the La Magnetita target, and is starting additional trenching and road building in the eastern portion of the target.

It also said that it will release additional results from its Las Calles drilling shortly, with the La Magnetita drill results to be released later this year.