By Dudley Pierce Baker
Founder-Editor, Common Stock Warrants
Normally the State of Jalisco in Mexico is synonymous with tequila, mariachis and beautiful women.
Of course mining for gold and silver in The State of Jalisco actually dates back to 1545 but to my knowledge, Agnico Eagle is the first major mining company soon to be operating in Jalisco.
I proudly call Jalisco home as I have been living in the Chapala-Guadalajara area for over 15 years and being on the fringe of the mining business with my websites and newsletter and I am happy to see Agnico Eagle Mines, NYSE:AEM and TSX:AEM coming into our area with their proposed buyout of Cayden Resources, TSXV: CYD.
Shareholders of Cayden are on the short list of successful investors over the last 3 years in the resource sector but thanks to good management and good properties I must say congratulations to the team at Cayden for a job well done. Several analysts have covered Cayden and I recall Bob Moriarty of 321Gold.com in particular telling everyone that CYD would be bought out, so congrats to Bob as well for a great call.
Of particular significance to me is the location of the Cayden properties and whether other resource companies operating in the immediate area may soon also be in play.
“….Cayden owns, has options to acquire or has staked, concessions constituting a 100% interest in the El Barqueňo Property, which covers approximately 41,000 hectares in the Guachinango gold district in Jalisco State, Mexico. El Barqueňo hosts a significant epithermal bonanza type gold vein and disseminated stock work system. Several gold bearing zones have been identified by drilling and trenching in an area approximately 13.5 km long by 4.7 km wide.
Cayden also owns a 100% interest in the Morelos Sur Property, which covers approximately 13,000 hectares in the Guerrero gold belt in Guerrero State, Mexico. Morelos Sur consists of three properties (La Magnetita, Tenantla and Las Calles), and exploration by Cayden has outlined a 25 km2 gold soil anomaly at La Magnetita, and Tenantla.
“This acquisition is consistent with our long-term strategy of acquiring promising, early stage gold projects where we can add value through focused exploration and mine building” said Sean Boyd, President and Chief Executive Officer of Agnico Eagle. “This strategy has served us well in Mexico, and we believe that the Cayden properties are a very good fit with our existing southern operations and skill sets”, added Mr. Boyd.
“We are pleased with the value that this transaction delivers to our shareholders and are excited at the prospect of Agnico applying its resources to the advancement of El Barqueño and the results that will surely follow. Our success could not have happened without the hard work of our entire team, and I’d like to thank them for all of their outstanding efforts.” said Ivan Bebek, President and Chief Executive Officer of Cayden Resources.
El Barqueňo Property Highlights
- Located in the Guachinango gold district near existing infrastructure (highway, power, labour)
- Early stage gold project with historical heap leach production (approximately 250,000 ounces produced in the 1980s)
- Epithermal bonanza type gold veins and disseminated stockwork systems – veins and mineralized structures have been identified in an area 13.5 km long by 4.7 km wide. Seven significant zones anomalous in gold have been identified to date
- Drilling by Cayden has focused on the Azteca, Angostura and Peña de Oro zones
- Highlights from Cayden drilling at the Azteca zone include: 4.26 grams per tonne (g/t) gold and 0.06% copper over 20 metres; 2.34 g/t gold and 0.15% copper over 44 metres
- Highlights from Cayden drilling at Peňa de Oro include: 4.46 (g/t) gold and 0.09% copper over 27 metres; 4.06 g/t gold and 0.39% copper over 45 metres
- Preliminary metallurgical testing by Cayden at Azteca has yielded positive results”
In the coming days we will be writing about some other companies operating in the immediate area of El Barqueno and Guachinango where the mines were first discovered in 1544-1545