VANCOUVER, BC--(Marketwired - February 26, 2016) - Cadan Resources Corp. (TSX VENTURE: CXD) ("Cadan" or the "Company") announces the T'Boli plant has achieve an average production rate of 207tpd over the last 8 days which is a record and has not been achieved since inception. This is a significant milestone for the Company considering the average daily production rate year to date is 59% 117tpd of the plant design and the current production rate.
It has been almost 5 weeks since Cadan's last production update and the plant continues to advance towards sustainable design output 200tpd, albeit not without some ongoing legacy issues.
There has been frustrating delays during the last month primarily due primarily due to electric motor and pump failures, and a lack of necessary spare parts. Lost production time of almost 7days, has significantly impacted availability and utilisation rates.
The commencement of an ongoing motor and pump replacement program along with the development of a preventative maintenance program should markedly improve plant availability over the next month.
Key Production Statistics from the beginning 2016 - year to-date
| | | | | |
| T'Boli | Unit | Jan | Feb | Year to Date |
| Milled Tonnes | Tonnes | 3,126 | 3,434 | 6,560 |
| Head Grade | Au g/t | 1.85 | 1.64 | 1.74 |
| Head Grade | Ag g/t | 24.21 | 24.48 | 24.35 |
| Recovery | Au % | 95.8 | 91.0 | 93.3 |
| Recovery | Ag % | 48.9 | 62.0 | 55.8 |
| Au Recovered | oz | 177.6 | 164.5 | 342.1 |
| Ag Recovered | oz | 1,190.2 | 1,677.0 | 2,867.2 |
| | | | | |
| Daily Average | Tonnes | 100.8 | 137.4 | 117.1 |
| | | | | |
The Company also notes that as per the Debt Facility with ResCap Investments Pty Ltd (ResCap) (Press release January 11, 2015) the first stage of the financing has been completed resulting in the issuance of 12,461,538 Share Purchase warrants (the "Warrants") to be issued to ResCap. Each warrant exercisable into a common share of the Company for a period of 3 year from the issuance date at an exercise price of $0.065 per share. Finders warrants will also be issued to a 3rd party whereby 5,800,000 Finders warrants exercisable into common shares of the Company for a period of 5 years at an exercise price of $0.10 per share. The new issuance is subject to the approval of the TSX Venture Exchange (the "TSX-V") and will be subject to a 4 month hold period.
On Behalf of the Board, Peter Main
Interim President and CEO
PeterM@CadanResources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements in this release are forward-looking statements, which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, assumptions or intentions regarding the future. Such forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Particular risks applicable to this press release include risks associated with ongoing and planned exploration and production programs, including the ability to complete the programs as planned, the results being sufficient to confirm or expand resources on the property, or the ability to convert resources into reserves. There is no guarantee that exploration or production will result in an economically viable project due to these and numerous other risks and uncertainties normally associated with production stage mining projects. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Readers are cautioned not to rely on forward looking information as a result. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through www.cadanresources.com or the Company's page on SEDAR at http://www.sedar.com.
