Cadan Resources Corp (fka CXD)

[echarter]

"The hole was drilled to a depth of 265.1 metres and results have been received for the first 200 metres. From 135 metres to 160 metres (25 metres) a zone of mineralization grading 0.72g/t gold (including 7 metres grading 1.22g/t gold) was obtained. In addition a further 45 metres of lower grade mineralization was obtained."

That is about what I figured they would hit in drilling. The rule in these Pac Rim refractory metal deposits is that they are much higher on surface than down below. As well there may be a nugget effect that is hard to figure in drilling. It will be hard to define a mineable resource in this environment. The early projections of 100's of metres of grade indicated or supported by narrow high grade grabs or channels in a core area, were unrealistic, when it could be seen that the background halo gold tenor was approx 0.5 grams. This has been amply been borne out in the drilling which is hitting a core area of slightly higher grade and wider areas of probably uneconomic mineralization.

Exploration potential would depend on establishng whether the core high grade can be projected downplunge or whether in fact its potential is entirely lateral, and the grade is geochemically degraded at moderate depth. This phenomenon of precipitative decline in riches due to temperature effects is well known. It may be that more exploration and study is needed to define this model. As well the nugget effect can be elucidated by more drilling more closely spaced with pulp and metallic methods, and larger diameter holes.

In the end, a model of a shallow large tonnage laterally-developed modest-grade zonation of perhaps <1 gram over ~100 feet in width may have to be accepted. That, if sufficient tonnage is built, is not the end of the world, provided that metallurgy is favourable.

To a depth of 340 feet, given a 2-times strip ratio, they could build 2 million ounces if 6.66 km of strike can be developed. That is 4 miles. A bit hopeful.

This will require about 250 grade drill holes and perhaps 350 holes total in a highly successful program.

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