Cadan Announces First Gold Production and Commissioning Update

January 14, 2016 / TheNewswire / Vancouver, British Columbia – Cadan Resources Corporation (TSXV: CXD) (“Cadan” or the “Company”) is pleased to provide an update on its commissioning progress and initial production, including the results of its first gold pour since the plant closure in September 2014.

Production Highlights (Commissioning Phase)

  • Gold and silver production to-date of 6.2kg Au and 20kg Ag

  • Total throughput to date of 5,189 tonnes

  • Average grade to date of 1.87g/t Au & 28.7g/t Ag

  • Average gold recovery to date of 91%

  • Throughput during December 2015 of 3,540 tonnes, averaging 114 tonnes per day

  • Average gold recoveries in December of 90%

  • Average grade during December of 1.83g/t Au and 30.02g/t Ag

  • Throughput January 1 to date is 1,649 tonnes, averaging 127 tonnes per day

  • Average grade year-to-date of 1.97g/t Au and 29.7g/t Ag

  • Average gold recovery year to-date of 95.6%

  • Current throughput 145tpd

Cadan’s gold production since commencing commissioning on the 7th of November has totalled 6.2kg of gold (Au), and 20kg of silver (Ag) equivalent to 199oz Au and 643oz Ag, at an average grade 1.87g/t Au and 28.7g/t Ag.

Commissioning is ongoing and has taken longer than anticipated, primarily due to the plant construction contractor not meeting agreed refurbishment specifications, timing and key performance milestones. As a result of those delays, in late December 2015 Cadan replaced the contractor and with Cadan’s own plant management team including appointing its own Mill Manager and maintenance contractor MagDrills to manage all mill maintenance. Cadan has observed significant improvements in the performance of the plant since the changes have been made.

The issues with the prior construction contractor has resulted in the planned ramp up of production to the plant design capacity of 200 tonnes per day (tpd) being delayed by approximately 8 weeks. Nonetheless production rates are continuing to increase at a steady rate and plant performance over the last 3 weeks has demonstrated much greater consistency.

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