Cadan Resources Corporation is engaged in the exploration of precious and base metal projects located in the Philippines. Its corporate objective is to advance the exploration of each project to the point where it can be developed economically, either by itself, or, in a development joint venture. The Company also owns a gold processing plant located at the T’Boli project site.
The Company’s management and resources are focused on the systematic exploration of the T’Boli gold-silver deposit located in south-central Mindanao, Philippines, which represents its most advanced asset. The T’Boli gold-silver project has a well established history of artisanal mining and milling, the project is geologically well understood and represents a significant resource potential, with 420,000 oz of gold defined as resource and significant potential to define greater resources with further underground development and drilling. In October 2012, Cadan’s T’Boli mine was issued approval to mine and process of up to 200 metric tons per day; commercial operations have now commenced.
The project is ready for operations with a constructed and commissioned carbon-in-leach (CIL) processing plant including a crushing and grinding circuit. Exploration development along existing veins can now readily be prepared as stoping blocks, which will allow the operation to quickly become a self sustaining underground mine with minimal delay and capital expenditure.
Cadan Resources Corp.’s Philippines affiliate, Tribal Mining Corporation (TMC), has poured its first gold since the approval to commence commercial production at the T’Boli gold-silver mine (news release Oct. 18, 2012). The first gold bars were poured at the TMC-owned carbon-in-leach (CIL) processing plant in T’Boli, South Cotabato, Philippines. Between Oct. 10 and Nov. 30, the T’Boli CIL plant milled 1,881 dry metric tons of mineralized rock from existing stockpiles (news release Nov. 26, 2012). With assays of 98% Au, and weighing a total of 316 ounces, the average grade of gold produced from 1,881 DMT was 5.2 grams Au/DMT. Additionally, 497 ounces of silver were recovered; the average grade of silver produced from the 1,881 DMT was 8.2 grams Ag/DMT. The average prices for the metal sold were $1,680/oz Au and $32.50/oz Ag for a combined recovery of $547,032.
Cadan’s president and Chief Executive Officer, Robert Butchart, commented:
“Cadan’s first gold pour is a fantastic milestone, reaching over half a million dollars in metal value. This confirms the mill is operational. We are very excited about what we have achieved.”
The mineralized rock stockpile was predominantly derived from the development of drives along veins in preparation of stopping operations during 2011 and 2012 (news release Nov. 26, 2012). The first of these drives is scheduled to commence mining operations during the first quarter of 2013, with daily production rates scheduled to rise up to 200 tonnes per day.
The Company is also advancing the Batoto-Tarale gold prospect and the ‘Cadan’ porphyry copper-gold prospect located in southeastern Mindanao. Following the sale of an 80% interest to Mining Group Limited (“MGL”) of Perth, Australia, completed in January of 2012, the Company holds a 20% equity interest in Philco Mining Corporation (“PMC”), incorporated in the Philippines. PMC owns the Comval porphyry skarn copper-gold deposits and targets contiguous with the Batoto-Tarale prospect.
The Company’s interest in PMC is free-carried until such time as MGL has incurred project expenditures of AUD$48 million, to be incurred by January 2017, in accordance with an agreed expenditure schedule, failing which, MGL’s interest in PMC will be diluted. In addition to its direct 20% interest in PMC, Cadan also owns approximately 3.1 million shares or 4.12% of Mining Group’s present issued capital (As of October 24, 2012).