Cayden Resources (CVE:CYD) has acquired an option to buy out the royalties on its Morelos Sur gold project, as part of a planned sub-division of the concessions into separate areas. 

The Morelos Sur project is currently comprised of the Reduccion  and Tenantla claims.

Cayden said its Mexican subsidiary will be applying to divide these concessions into three new parcels following an amending agreement signed yesterday with Industrial Minera Mexico. 

The buy-out option was acquired as part of the amending agreement. 

"We are pleased to have renegotiated fixed terms and buy-out options on the royalties associated with our Morelos Sur property," said president and CEO Ivan Bebek. 

"The application to divide the Morelos Sur Concessions into three new parcels provides additional flexibility for Cayden going forward to be able to deal separately with these areas."

Under the original agreement with Industrial Minera, a 3.5% net smelter applied to the concession areas of Morelos Sur, Las Calles and Morelos East, consisted of 2.5% payable to the Geologic Service of Mexico and 1% payable to Industrial Minera. 

An advance royalty payment of $200,000 to Industrial Minera starts in 2013 until the start of production, when the 1% net smelter return (NSR) was to apply. 

Under the revised royalty agreement, the Morelos Sur concession will be subject to the 2.5% NSR payable to the Geologic Service, but will now carry a 2% NSR payable to Industrial Minera, and an advance minimum royalty of $200,000 per year. 

The 2% NSR and the advance royalty can be purchased for $7 million within the next 3 years or for $20 million anytime thereafter, Cayden said.

Meanwhile, the Las Calles concession will be subject to the 2.5% payable to the Geologic Service and a 2% NSR payable to Industrial Minera, which can be bought at any time for $3 million. 

Finally, the Morelos East concession, which is comprised of an east block and a west block that surrounds Goldcorp's (TSE:G) Los Filos and El Bermejal mines, will be subject to the 2.5% royalty payable to the Mexican Geologic Service. The 1% payable to Industrial Minera has been purchased for $10,000. 

The Morelos Sur project is located in the Guerrero Gold Belt, which is an emerging gold region in the southern State of Guerrero, Mexico, that extends roughly 60 km.                

Industrial Alliance Securities has recently initiated coverage on Cayden Resources (CVE:CYD), along with three other companies operating in Mexico's prolific Guerrero Gold Belt. 

The Guerrero Gold Belt is an emerging gold region in the southern State of Guerrero, Mexico, that extends roughly 60 km.

The broker rated the junior explorer a speculative buy, on the basis of "highly prospective drilling and a pending land sale", the analyst notes. 

Cayden is a Canadian exploration company focused on two precious metal opportunities in Mexico and one in Nevada. Its primary projects are the Morelos Sur gold property in the Guerrero Gold Belt, and the El Barqueño property in Jalisco, Mexico  - part of the Sierra Madre and Trans Mexico Mineral belts. 

The Industrial Alliance analyst, Merrill McHenry, cites location as the number one reason for its recommendation, as Cayden "not only surrounds Goldcorp's Los Filos mines, but is between them as well."

Morelos Sur lies around 230 kilometres south of Mexico City, and comprises four targets: Las Calles, La Magnetita, La Joya and Mina Verde.

La Magnetita is the largest undrilled geophysical anomaly of its type in the gold belt and appears to mirror the geophysics of Goldcorp's Los Filos deposit. 

The analyst also takes note of exploration drilling at Magnetita East, a target the broker finds "highly prospective with excellent soil samples and geophysics", and potential near term settlements with Goldcorp. 

In September last year, the company started initial drilling at the target, which consisted of 4,000 to 5,000 metres to test what it called the "highly mineralized" four square kilometre heart of the more than 500 parts per billion (ppb) gold-in-soil anomaly.  It also received additional rock and mapping results from the La Magnetita East area, which included over 20 new bedrock samples that returned grades as high as 9.4 grams per tonne (g/t) gold, and 982 g/t silver. 

In addition, the Industrial Alliance report highlights the company's El Barqueño property in Jalisco, Mexico  - which could be a "company maker" as well, the analyst says. 

Last September, Cayden said that Geotech had been contracted to begin a VTEM airborne geophysical survey on El Barqueño, with an initial drill program expected early this year. 

For Cayden, analyst McHenry says that no price target can reasonable be estimated for the junior company, until an estimable resource is established. 

"However, we believe there to be a sufficiently compelling rationale for us to assign “Speculative Buy” ratings based upon essential factors including attractive geophysical project(s); regional prospectivity; seasoned talented management; & 2013 catalysts."

The broker report notes the geophysical lineaments of the Guerrero Gold Belt, as well as its "rapid discovery growth". "We believe high prospectivity on a large scale (see: “Osisko 1 million hectare staking” below) are the makings of a World Class Gold District."

According to the research note, in 2011, Mexico joined the top 10 gold producing countries in the world, experienced the fastest growth in production, at 13.9%, and the lowest cash cost gold production. 

Other juniors operating in the region that received initial coverage included Torex Gold (CVE:TXG), Newstrike Capital (CVE:NES) and Minaurum Gold (CVE:MGG). 

Cayden Resources (CVE:CYD) says it has started drilling on its La Magnetita East target at the Morelos Sur gold property in Guerrero State, Mexico. 

The drilling will inititally consist of 4,000 to 5,000 metres to test what the company calls the "highly mineralized" four square kilometre heart of the more than 500 parts per billion (ppb) gold-in-soil anomaly. 

Cayden also said Tuesday it has received additional rock and mapping results from the La Magnetita East area, which include over 20 new bedrock samples that returned grades as high as 9.4 grams per tonne (g/t) gold, and 982 g/t silver. 

"We are very impressed with the coincident results of the geologic mapping, rock samples and the highly prospective nature of the strongly anomalous multi-element soil anomaly at our La Magnetita East target," said chief geologist for Cayden, Dan McCoy. 

"The strength of the soil and rock values as well as the presence of the right kinds of lithology and alteration are very encouraging as we believe that this is one of the best undrilled targets we have seen on our property to date. 

"We are very excited for commencement of the core drilling program," he added. 

Indeed, last week, Cayden said that soil and rock results “significantly increased” the size of the La Magnetita gold anomaly at its Morelos Sur project. 

The company said the results from the eastern part of La Magnetita increased the size of the gold-in-soil anomaly from 5.0 by 3.7 kilometres to over 5.4 by 5.4 kilometres. 

The miner also noted last week that the limited reverse circulation drilling completed to date on the western side of the La Magnetita anomaly has not returned any significant results as of yet.

On the company's El Barqueno project, Cayden said today a VTEM airborne geophysical survey is underway, as well as "extensive" surface programs. An initial drilling program at the project is expected to begin early next year. 

Cayden is a junior mining company focused on precious metal projects in North America. 

Last month, the company increased a non-brokered financing it announced previously from $4.2 million to nearly $5.1 million due to increased demand. 

The company said the soil and rock results from the eastern part of  La Magnetita, have increased the size of the 100 plus, parts per billion (ppb) gold-in-soil anomaly from 5.0 by 3.7 kilometres to over 5.4 by 5.4 kilometres. 

Cayden said the large anomaly now shows an “impressive” two-kilometres-squared area with mostly plus 0.5 grams per tonne (g/t) gold-in-soils.

“We are very impressed with not only the size of the La Magnetita East gold anomaly, but even more with the significant area of the higher grades seen in the soils,” said president and CEO Ivan Bebek.

“We are also very eager to commence work on our El Barqueno project as the extensive outcropping epithermal veins are going to be exciting to explore.”

Cayden said it is continuing rock sampling, geologic mapping and road and trench building in the area and core drilling is expected to commence shortly. 

The company noted that the limited reverse circulation drilling completed to date on the western side of the La Magnetita anomaly has not returned any significant results as of yet.

On the El Barqueno project, Cayden said Geotech Ltd. has been contracted to begin a VTEM airborne geological survey which will include magnetics, resistivity, and radiometric sensors. 

The company said surface exploration programs will be initiated in the fourth quarter, leading to an initial drill program expected to commence in early 2013.

Cayden is a junior mining company focused on the acquisition, exploration and development of precious metal projects located in North America. 

Last month, the company increased a non-brokered financing it announced previously from $4.2 million to nearly $5.1 million due to increased demand. 

The non-brokered private placement raised gross proceeds of CAD$5.095 million by the issue of 5.095 million units at a price of $1.00 each. 

Cayden said it appreciated the support of its investors, welcomed new investors and thanked Sprott Global Resources Investments Ltd., and Euro Pacific Canada Inc. for their assistance in raising the funds.

The miner said the funds will be used to advance exploration program at the Morelos Sur and El Barqueno gold projects in Mexico, as well as for general and administrative expenses. 

Cayden said it anticipated the next eight months to be “very exciting” as it continues to drill the Morelos Sur property and commence further exploration on the El Barquenos property.

In July, the company reported high grade gold in a new trench from its La Magnetita target, including results of 20 metres of 6.39 g/t gold, including 6 metres of 14.4 g/t gold.

Also, further along the trench, Cayden said it intercepted 27 metres of 0.48 g/t gold, and 17 metres of 0.62 g/t gold. 

Capital markets firm Euro Pacific Capital recently said Cayden had a “very compelling” flagship La Magnetita project as it initiated coverage with a “buy” recommendation.

It currently has three projects located in Guerrero and Jalisco, Mexico, and Nevada, USA.

The placement consists of 4.2 million share units priced at C$1.00 per unit. Each unit consists of one common share and one half warrant, entitling the holder to purchase one common share of the company for $1.50 for a period of two years.

The company said it intends to use the net proceeds of the offering to fund the advancement of the its Morelos Sur and El Barqueño gold projects in Mexico and for general corporate purposes.

Cayden said it may pay finder's fees on the private placement, and closing of the offering is anticipated to occur on or before August 17 subject to applicable regulatory approvals.

The junior mining company is focused on the acquisition, exploration and development of precious metal projects located throughout the Americas.

Last month, Cayden announced it had found high grade gold in a new trench from its La Magnetita target at the Morelos Sur project.

Highlights included 20 metres of 6.39 grams per tonne (g/t) gold, including 6 metres of 14.4 g/t gold. Also, further along the trench, the miner said it intercepted 27 metres of 0.48 g/t gold, and 17 metres of 0.62 g/t gold.

The intercepts are located in the western portion of the 7.3 square kilometre gold in soil anomaly outlined earlier this year.

Cayden has already begun drilling one of the western anomaly targets and is currently awaiting results, it said.

Additional trench samples from both the eastern and western anomaly targets have also been completed, with results pending as well.

In June, the first batch of trench assays from the La Magnetita prospect included 24 metres of 1.65 g/t gold, 25 metres of 0.72 g/t gold, and 25 metres of 0.52 g/t gold.    
            
Cayden currently has three projects located in Guerrero and Jalisco, Mexico, and Nevada, USA.

Cayden currently has three projects located in Guerrero and Jalisco, Mexico and Nevada, USA.

La Magnetita is part of Cayden’s Morelos Sur gold project in Guerrero State, Mexico.

The drill program will test the depth extensions of prior 24-58 metre long + 0.5 grams per tonne (g/t) gold trench intercepts.

The area from which trench results have been received so far covers roughly 20 percent of the initial 5 km long, strong gold in soil anomaly, the company said.

Last month, the miner received over 1,200 assays from its La Magnetita and La Joya soil program, which indicated an extensive gold anomalous area that is up to 5 km in an east-west direction, by 2 km in a north-south direction.

Cayden currently has several assays in the lab from new trenches, which will likely provide additional targets for the company in the near future, it said.

The company started at La Magnetita with a fairly raw prospect underlain by a "very prospective" magnetic anomaly.

Each successive stage of exploration, from stream sediments, to soils and trenching, successfully identified gold anomalies, supporting the theory that the target could host a large gold deposit similar to the others discovered in the Guerrero Gold Belt, Cayden said.

"The opportunity to drill La Magnetita is significant, as it is rare to find so many consistent preliminary indicators in a prolific world class gold belt," said Cayden’s chief geologist, Dan McCoy.

The company announced last week the release of new trench assays from the La Magnetita prospect. Highlights included 24 metres of 1.65 g/t gold, 25 metres of 0.72 g/t gold, and 25 metres of 0.52 g/t gold.

The company reported that the intercepts were in the western part of the five kilometre long soil anomaly at the site.

An additional 363 trench samples are pending assay, and will be released shortly, the company said in the middle of last month.

"The exploration target at La Magnetita is centered on a hydrothermal system impressive for its size, strength, and continuity. Drilling will add the important third dimension and a test of its bulk tonnage potential," added Cayden’s director, David Jones.

Jones is credited with the discovery of the Los Filos gold-skarn deposit, which became Mexico's largest producing gold mine.

Cayden focuses on the acquisition, exploration and development of precious metal projects located throughout the Americas. It currently has three projects located in Guerrero and Jalisco, Mexico, and Nevada, USA.

Highlights include 24 metres of 1.65 grams per tonne (g/t) gold, 25 metres of 0.72 g/t gold, and 25 metres of 0.52 g/t gold.

The company reported that the intercepts are in the western part of the five kilometre long soil anomaly at the site.

To date, approximately one kilometre of the anomaly has had extensive road and trench construction, with the mineralized trenches occurring over a 700 metre strike length.

An additional 363 trench samples are pending assay, and will be released shortly, the company said.

Cayden has also been constructing a detailed geologic map of the La Magnetita area and has begun drill pad construction.

The company anticipates drilling at La Magnetita to commence within a week’s time.

"Despite only receiving assays from less than 20% of the extensive La Magnetita gold-in-soil anomaly, we are excited to begin drilling while simultaneously continuing the expansion of our trench and road network to fully cover this large anomaly," said Cayden’s president and CEO, Ivan Bebek.

"Cayden is also continuing its drill program at Las Calles and expects to release more results from there in the near future."

The company focuses on the acquisition, exploration and development of precious metal projects located throughout the Americas, currently having three projects located in Guerrero and Jalisco, Mexico, and Nevada, USA.

Earlier in May, Cayden identified "significant gold" in a soil anomaly at the La Magnetita deposit. The company had received over 1,200 assays from its La Magnetita and La Joya soil program, which indicated an extensive gold anomalous area that is up to 5 kilometres in an east-west direction by 2 kilometres in a north-south direction.

Cayden said at the time that the soil anomaly strongly suggests that the La Magnetita and La Joya targets are part of the same very large hydrothermal system.

Shares of Cayden increased 3.48 percent to $1.19 Thursday morning.

Cayden reported that Jones has over 30 years' experience in mineral exploration and project management. As chief geologist and manager of Teck's (TSE:TCK.B) Nukay project from 1994-1999, the company said Jones is credited with the discovery of the Los Filos gold-skarn deposit, which became Mexico's largest gold producer (Goldcorp Inc.) in 2010.

Starr was the head of capital markets for a boutique Canadian investment bank and has been active in the financial services industry for over 13 years, said the company.

He has worked for global investment banks and independent boutique investment dealers during his career, both as an equity salesperson/trader as well as in corporate finance.

Cayden said that Starr will be joining the company as a full time director and VP of corporate development, where his "extensive background in the public markets will be a significant asset to the company."

"We are very pleased to be able to further strengthen our board,” said Cayden president and CEO Ivan Bebek.

"David Jones, with his extensive technical background and as an authority on the Guerrero Gold Belt, is a tremendous compliment to our Morelos project that encircles Goldcorp's Los Filos and El Bermejal mines.

"Russell Starr's corporate banking background will add to the company's market exposure and enhance future financing efforts."

To allow room for the new board members, Cayden reported that Peter Rees will be resigning from the board, but will be continuing on in the role as CFO and corporate secretary.

The junior mining company is focused on the acquisition, exploration and development of precious metal projects located throughout the Americas.

On Wednesday, Cayden said it had acquired an option to earn a 100 percent interest in the 9,800-hectare El Barqueño gold property located 110 kilometres west of Guadalajara in the state of Jalisco, Mexico.

The company noted that in an internal report dated January 9, 2005, a subsidiary of Grupo Mexico (IMMSA) defined a non-compliant resource of roughly 2.4 million tons at an average grade of 3.62 grams per ton (g/t) gold, equivalent to about 290,000 ounces of gold over several prospects on the El Barqueño property.

Cayden said that the property contains "significantly under-explored" areas of gold mineralization near areas of past production and other deposits.

Earlier in March, the company unveiled initial results from its drill program at the Las Calles target and its trench program at the La Magnetita and La Joya targets, each located on the Morelos Sur gold project, located in the Nukay mining district of central Guerrero State in southern Mexico.

Significant results at the Las Calles target included LCDD0093, which intersected 14.0 metres grading 4.2 g/t gold, including 2.0 metres at 16.0 g/t gold. The hole also intersected 6.5 metres grading 0.62 g/t gold.

Under the option, Cayden said it would make payments to a subsidiary of Grupo Mexico (IMMSA) over a three-year period totalling US$8 million, with payments of $2.1 million in the first 24 months.

The company’s shares rose 2.44 percent to $1.68 on the back of the announcement.

Cayden noted that in an internal report dated January 9, 2005, IMMSA defined a non-compliant resource of roughly 2.4 million tons at an average grade of 3.62 grams per ton (g/t) gold, equivalent to about 290,000 ounces of gold over several prospects on the El Barqueño property.

The company said that the property contains "significantly underexplored" areas of gold mineralization near areas of past production and other deposits.

"El Barqueño gives Cayden shareholders the opportunity to benefit from a second highly prospective gold project in another prolific metals producing area in Mexico," said Cayden CEO Ivan Bebek.

"El Barqueño has large mineral systems at advanced stages of exploration that have both the size and grade potential, to host multi-million ounce deposits that can be discovered through the application of systematic, modern exploration."

The company said it did not find information in the existing data that any previous grid based soil, rock or geophysical surveys were performed.

Therefore, Cayden said that its plan will first focus on applying modern grid based geochemical and geophysical exploration techniques to the property, after which time a comprehensive drilling program will be designed.

Only after the company has done its own drilling, assaying, and applied its own geostatistical techniques will it put out a NI 43-101 compliant resource.

Cayden reported that the geology of the property consists of andesitic volcanic rock, which host gold-silver-(copper-lead-zinc) mineralization in an extensive network of veins with very large and extensive alteration halos.

The company said that the government of Mexico undertook exploration and mining activities in the area in the mid 1980s, producing around 250,000 ounces of gold from two separate small pits that make up only a very small portion of the mapped mineralization.

Cayden said the option deal announced today is subject to a 1.5 percent net smelter return (NSR), and annual advance royalty obligations after 24 months from option exercise, if commercial production has not started by then.

The company will pay a finder’s fee equivalent to 10 percent of the value of the option, at a rate not to exceed US$800,000, it said, which will be paid 80 percent in shares with the balance in cash.

Cayden is a junior mining company focused on precious metal projects located throughout the Americas. In late March, the company unveiled positive drill results from its Quartz Mountain property near Fallon, Nevada.

The results were from eight step out holes that followed up on significant grades and widths of silver and base metal mineralization found in holes in February.

Highlights of those results included 18.3 metres of 119 g/t silver, 0.3 g/t gold, 0.32 percent copper, 2.73 percent zinc, and 1.89 percent lead in hole QM-0023.

The majority of holes encountered intercepts greater than 30 g/t silver, Cayden said, and in excess of 1 percent combined lead and zinc.

As of late March, the company was finishing its phase one drill program and expected assays from four more holes, after which time it said it would determine a geologic model for mineralization and design the next phase of drilling.

The Quartz Mountain project consists of an option with Vancouver-based Railhead Resources, under which Cayden can earn either a 50 or 60 percent interest in three groups of Nevada silver-gold exploration properties.

Earlier in March, the company unveiled initial results from its drill program at the Las Calles target and its trench program at the La Magnetita and La Joya targets, each located on the Morelos Sur gold project, located in the Nukay mining district of central Guerrero State in southern Mexico.

Significant results at the Las Calles target included LCDD0093, which intersected 14.0 metres grading 4.2 g/t gold, including 2.0 metres at 16.0 g/t gold. The hole also intersected 6.5 metres grading 0.62 g/t gold.

The results are from eight step out holes that followed up on significant grades and widths of silver and base metal mineralization found in holes reported last month.

Highlights of the latest results included 18.3 metres of 119 grams per tonne (g/t) silver, 0.3 g/t gold, 0.32% copper, 2.73% zinc, and 1.89% lead in hole QM-0023.

In addition, hole QM-0017 returned 4.6 metres of 198 g/t silver, 0.97 g/t gold, 0.33% copper, 3.56% lead, and 1.45% zinc, while hole QM-0022 hit 10.6 metres of 96 g/t silver, 3.08% lead and 0.34% zinc.

"We are very pleased to see the continuation of higher grade mineralization at the Quartz Mountain San Rafael target and look forward to drilling some of the other large targets on the property later this year," said president and CEO, Ivan Bebek.

"With our ongoing aggressive programs at Morelos Sur and continued results out of Nevada, we expect 2012 to be a year that we could potentially deliver significant new discoveries on both our properties.

"We look forward to releasing further results from both exploration programs in the coming months."
The mineralized intercepts reported to date for the Nevada property hail from a total of 24 holes that have tested the Quartz Mountain mineralized system over an area of 350 by 150 metres.

The majority of holes encountered intercepts greater than 30 g/t silver, Cayden said, and in excess of 1% combined lead and zinc.

Cayden is now in the midst of finishing its phase one drill program and expects assays from four more holes in the coming weeks, after which time it will determine a geologic model for mineralization and design the next phase of drilling.

The company is also starting a soil-sampling program with a crew of two project geologists and four field assistants to test other areas of the property.

Many of these prospective areas include historic workings, which have returned high-grade precious and base metal values from dump grab samples that are interpreted to be coincident with geophysical anomalies and trends, the company said.

The Quartz Mountain project consists of an option with Vancouver based Railhead Resources, under which Cayden can earn either a 50 or 60 percent interest in three groups of Nevada silver-gold exploration properties.

The property is comprised of three claim groups for a total of 60 square kilometres.

Earlier this month, Cayden unveiled initial results from its drill program at the Las Calles target and its trench program at the La Magnetita and La Joya targets, each located on the Morelos Sur gold project, located in the Nukay mining district of central Guerrero State in southern Mexico.

Significant results at the Las Calles target included LCDD0093, which intersected 14.0 metres grading 4.2 grams per tonne (g/t) gold, including 2.0 metres at 16.0 g/t gold. The hole also intersected 6.5 metres grading 0.62 g/t gold.

Other notable results included LCDD0091, which returned 6.0 metres grading 0.69 g/t gold, and 5.0 metres grading 0.828 g/t gold.

Significant results at the Las Calles target included LCDD0093, which intersected 14.0 metres grading 4.2 grams per tonne (g/t) gold, including 2.0 metres at 16.0 g/t gold. The hole also intersected 6.5 metres grading 0.62 g/t gold.

Other notable results included LCDD0091, which returned 6.0 metres grading 0.69 g/t gold, and 5.0 metres grading 0.828 g/t gold.

These initial results, said the company, indicate the potential for a deeper, lateral extension of the ore body that is currently being mined by Desarrollos Mineros San Luis (DMSL), a subsidiary of Goldcorp (TSE:G), at the Los Filos mine.

The Los Filos mine is a producing mine that is located within the boundaries of Cayden's Morelos Sur property. Los Filos is also the largest gold mine in Mexico and is forecast to produce 345,000 ounces of gold in 2012 at a low cost of under $500 an ounce, according to Goldcorp.

"We are very pleased with our progress at our Morelos Sur Project and the results we are seeing," said Cayden president and CEO, Ivan Bebek said.

"Las Calles is now progressing well after a very slow start due to some drilling challenges which have since been resolved. The initial results indicate the likely extension of the Los Filos mine into our ground and the potential connection of DMSL's pits through our Las Calles target.

"We look forward to more confirmatory results in the coming months."

Drilling is continuing at Las Calles with two rigs on the property.

The company will also add another core rig and a reverse circulation (RC) drill rig to perform some pre-collar drilling, Cayden said.

Meanwhile, Cayden also received the assay results from the first trench at its La Magnetita target, which encountered 51.0 metres of 0.68 g/t gold, including 10.0 metres of 2.1 g/t gold.

"Initial La Magnetita trenching is very encouraging as the gold is coinciding with both the magnetic and geochemistry anomalies," Bebek continued.

"We are looking forward to receiving and analyzing the numerous surface results pending from the La Magnetita area prior to drilling at the end of March."

On the La Joya target, additional trench results expanded the length of the mineralized trench to 216.0 metres at 0.66 g/t gold, from 134.0 metres at 0.72 g/t gold in November 2011.

The company will use the RC rig at Las Calles to drill a phase one reconnaissance drill fence over 6,000 metres at La Magnetita and at La Joya. Cayden said it expects to deliver the results of this program by the second quarter of 2012.

In other news, Cayden reported that DMSL has completed 34 of the agreed 50 holes from the condemnation program on Cayden's Morelos Sur property. Assay results for ten holes have been received to date, grading up to 0.11 g/t gold.

Under the current cooperation agreement between DMSL and Cayden, DMSL agreed to drill an area marked out for the planned expansion of the current operating heap leach on the Morelos Sur property. DMSL is required to provide Cayden with a program update every 30 days. Cayden's mineral rights for the property are not affected by the agreement.

On the TSX-Venture Exchange, Cayden shares rose four percent to $2.60, as of 12:21 pm EDT.