Cadan Resources has begun a 12,000 metre deep drilling program aimed at testing multiple vein systems at its flagship T’Boli Gold Project on Mindanao Island.

T’Boli is an epithermal gold-silver mineralization system with a significant initial NI 43-101 gold resource estimate in 2008 of 240,000 indicated ounces, and an inferred silver resource estimate of 1.6 million ounces. It is in south-central Mindanao which has long been recognized as one of the country’s most mineralized areas.

Cadan says most of the planned drilling is outside the established resource, with a conservative hope of defining a threefold increase in resources. A regional potential of between 2 and 5 million ounces of gold and 8 to 25 million ounces of silver has been previously estimated using ranges of tonnage and grade.

A newly purchased Longyear 38 drill rig that’s capable of hole depths in excess of 500 metres will be used to test for extensions to high grade gold mineralization along strike and at depth along known vein structures. To expedite completion of the program, Cadan anticipates that additional drill rigs will be mobilized as chamber development proceeds.

Underground lateral development is building an inventory of stoping blocks in anticipation of completion of the government permitting process prior to commissioning of the recently constructed CIL mill.

Cadan’s president Robert G Butchart says, “The inclusion of underground lateral development undertaken during the past 12 months and results from adit and channel sampling derived therefrom will form part of the expanded data base for resource tonnage and grade estimation purposes which we expect to have later in the year.”

It’s anticipated a new NI 43-101 compliant resource estimate will be announced by December 2012. In addition to the drilling activities, Cadan continues to invest in underground development to establish drill chambers for access and optimal positioning of drill rigs.

www.cadanresources.com

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