VANCOUVER — It’s been a strong four months for explorer Cayden Resources (TSXV: CYD) and its El Barqueno gold project, 110 km west of Guadalajara in Mexico’s Jalisco state.
Though the company is associated with the Guerrero gold belt, exploration at El Barqueno has seen Cayden shares jump 65%, or 51¢, since late May, en route to a $1.29 close on Aug. 22. The company continued to climb on Aug. 22, when it released maiden results from a trenching program at its Pena de Oro target.
So far, Cayden has gotten the best results from its Azteca area, where the company reported a high of 35 metres grading 3 grams gold per tonne during trenching
in mid-July — but initial results at Pena de Oro appear to give Cayden a second target at El Barqueno. Pena de Oro lies northeast, and hosts massive vein, stockwork veining and silicification that have been exposed by historical workings. The target area measures 750 by 200 metres, and is open downdip and along strike.
“We are pleased to see the grade and widths of gold mineralization in our first Pena de Oro trenches. The results are similar to our Azteca target area, and importantly, 7 km away along strike,” says president and CEO Ivan Bebek, also noting that the company is starting its first drill program at Azteca, and has released “significant trench intercepts” in the past six months.
The highest grade assays at Pena de Oro came from trench 22, which cut across a newly mapped vein southwest of previously identified workings, and intersected 8 metres grading 14.7 grams gold. Other highlights are: 29 metres averaging 3.1 grams gold in trench 5, 13 metres of 2.4 grams gold in trench 14 and 13 metres grading 2.4 grams gold in trench 18. Cayden reports that most of its trenches ended in mineralization, with the extensions being sampled, along with ongoing trenching at the target.
The company has its initial drilling permits at El Barqueno, as it received permission for 143 holes on the Azteca portion of the project. Cayden is awaiting permits on other prospects, though drilling is scheduled to start at Azteca as soon as equipment arrives.
On Aug. 12, Cayden also released results from a 13-hole core drill program at its La Magnetita East target on its Morelos Sur concession in Guerrero state. The company’s program tested a small section of a contact zone between one of two large granodiorite stocks, which trend northwest for 2 km. Bebek noted that the results tested a portion of a larger target at La Magnetita, and showed gold at the skarn target.
Highlights from Cayden’s drilling at La Magnetita include: 12.5 metres grading 1.14 grams gold and 11.7 grams silver from 131 metres depth in hole 141; 2.1 metres of 2.26 grams gold from 319 metres in hole 134; and 36.6 metres averaging 0.2 gram gold from 86 metres in hole 140.
Shares jumped 9.3%, or 11¢, on 65,000 shares traded after releasing assays from Pena de Oro on Aug. 22. Cayden has US$11 million in cash, and maintains 42 million shares for a $53.6-million market capitalization.
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