Cadan Resources has poured its first gold bars worth more than half a million dollars at the T’Boli gold-silver mine in Mindanao. The company received approval to commence commercial production in October and has since milled 1881 tonnes of mineralized rock from existing stockpiles, with an average grade of 5.2 grams/tonne gold. There were 497 ounces of silver also recovered.
The gold was poured at the TMC owned carbon-in-leach processing plant in South Cotabato and prices for the metal were Can$1680/ounce gold and Cad$32.50/ounce silver, netting the company Can$547,032.
Cadan’s president Robert Butchart says, “Our 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 mostly derived from the development of drives along veins in preparation of stoping operations during 2011 and 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.
During the last two years Cadan has refurbished the Beehive underground workings through the Mofoko portal, which has enabled it to expose access to known mineralized gold structures. Cadan has already absorbed this cost as part of the necessary exploration program while waiting for government approvals to commence mining.
Meantime, the company has announced a private placement of 15 million shares to raise $3 million which will go towards repaying a loan reaching maturity on December 23.