Agnico Eagle Mines and Cayden Resources announced on September 8, an agreement whereby Agnico Eagle will acquire Cayden for total consideration of approximately C$205 million in cash and Agnico Eagle shares.
Cayden is a junior Canadian company headquartered in Vancouver, British Columbia. Its key properties are its El Barqueňo property in Jalisco state and its Morelos Sur property in Guerrero state, Mexico. Agnico Eagle views the Cayden properties as a good fit with its current business in Mexico, which is focused primarily on its Pinos Altos operations in Chihuahua state. Pinos Altos produced 215,800 oz of gold and 2.4 million oz silver in 2013.
Cayden's El Barqueňo property covers approximately 41,000 ha in the Guachinango gold district and hosts a significant epithermal bonanza-type gold vein and disseminated stockwork 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. Historic heap-leach operations produced about 250,000 oz of gold from the property during the 1980s.
Drilling by Cayden at El Barqueňo has focused on the Azteca, Angostura, and Peňa de Oro zones. Highlights from drilling at Azteca include 4.26 g/mt gold and 0.06% copper over 20 m and 2.34 g/mt gold and 0.15% copper over 44 m. Highlights from drilling at Peňa de Oro include 4.46 g/mt gold and 0.09% copper over 27 m and 4.06 g/mt gold and 0.39% copper over 45 m.
Preliminary metallurgical testing at Azteca has yielded positive results.
Agnico Eagle Senior Vice President–Latin America Tim Haldane said, "From a technical perspective, El Barqueňo bears a lot of similarities to Pinos Altos in the early days. The property has tremendous exploration upside and several prospective zones that we believe can ultimately support heap-leach and/or milling operations, which would allow us to build another meaningful business in Mexico."
The Morelos Sur property covers approximately 13,000 ha in the Guerrero gold belt. Exploration by Cayden hasoutlined a 25-km2 gold soil anomaly on the La Magnetita and Tenantla concessions on the property, with values of 0.1 to 1 g/mt gold.
Also, the Morelos Sur property is bordered on the east by Goldcorp's Los Filos mine property. Agnico Eagle's Las Calles concession on the Morelos Sur property projects into and is largely surrounded by the Los Filos mine property. Cayden drilling at Las Calles has yielded intersections of up to 3.21 g/mt gold and 84 g/mt silver over 28.5 m.