Goldcorp's Los Filos mine

Goldcorp's Los Filos mine

Cayden Resources (CYD:TSXV) announced results of its surface program at the El Barqueno project in Jalisco State, Mexico. The company has been doing a focused surface program in order to identify targets for a 5,000m drill campaign they anticipate starting next week.  Trench results at the Pena de Oro target area included 20m of 3.6g/t gold, 8m of 7.9g/t gold and 9m of 7.9g/t gold which have extended the known strike length to over 800m.  At the Azteca target area, CYD trenched high grade gold including 4m of 41.6g/t gold which have extended the known strike length there to over 2.2km. The company is well-capitalized with $11.5 million in the bank which the company says will last them, at their current burn rate, until 2015.

Ivan Bebek, President and CEO commented, "We are excited to start our initial drill program at the Azteca target area next week where we have encountered extensive gold mineralization at surface in the past 9 months. We are also very pleased with the fact that we are still continuing to add strike length to our existing targets and finding new gold targets throughout the concessions."

News Release: Cayden Discovers More High-Grade in New Trenches at El Barqueno and Extends Strike Length

Cayden has been a closely watched exploration story due to the strategic location of its flagship asset, the Morelos Sur project.  The Las Calles zone is surrounded by Goldcorp’s Los Filos (to the North) and El Bermejal (to the South) pits as well as the central heap leach facility (to the West).  Cayden has drilled this area and have hit good gold intercepts (41.7m of 1.02g/t gold and 14m of 4.2g/t gold) suggesting that the mineralization of the two pits (Los Filos and El Bermejal) may be contiguous.  The company has other strategic land in the area and, as a result, speculation of a takeout has remained high.

Watch for drilling success at El Barqueno which could lead to a new discovery for the company.  Also, watch for a potential sale of Las Calles or Morelos Sur or the entire company to Goldcorp.

Here's the 12 month CYD chart:

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Do your own due diligence.