Interview with Bob Felder from Jayden Resources Inc.
 
 
This interview was conducted in mid-June 2011 by Stephan Bogner (SB) who does not hold any shares or other securities or interests of Jayden Resources Inc. and was not paid any monies or any other kinds of tangible or intangible valuables to conduct this interview or any other services for Jayden Resources Inc. Mr Robert (Bob) Felder is the President of Jayden Resources Inc. (TSX-Symbol: JDN).
 
SB:
Based on a total of 732 drill holes (88,645 m) and 76 trenches (1,447 m), JDN announced in March an updated NI43-101 resource on its 70-80% owned and 1,250 ha sized “Silver Coin” project only 25 km north the Port of Stewart in B.C.  
 
The “measured & indicated” resource is calculated at 0.8 million oz gold, 4.5 million oz silver and 91 million pounds zinc. On May 24, JDN announced the start of a $5 million exploration & development program incl. some 100 drill holes (approx. 15,000 m).
 
Mr. Felder, will the current drill program upgrade the “inferred” resource to the “indicated” category in order to more than double the existing “measured & indicated” resource to a total of 1.7 million oz gold, 11 million oz silver and 219 million pounds zinc? What else is the purpose of and what do you expect from the recently started exploration & development project? Do you plan further trenching?
 
 
Bob Felder:
One of the primary goals of the 2011 program is to upgrade the resource categories and convert as much of the “inferred” resource to “measured and indicated”. If we continue to receive positive drill results, it is possible that we could double the measured and indicated resource over that reported in March 2011. The drilling program will also test targets represented by surface showings of gold mineralization outside of the currently defined resource area, with the goal of adding new ounces to the resource. In addition, our 2011 drilling will provide detailed geological and geochemical data within the resource to enhance our ability to build a comprehensive geologic model of the Silver Coin deposit, and in particular to better understand the distribution and controls on the high-grade zones. We are not planning any trenching this season.
 
SB:
Do you plan to drill some deep holes to explore for the high-grade feeder zones? Kindly inform us briefly on the geology of “Silver Coin” and where you suspect the source of the respectable mineralization that you already encountered close to surface. How high could the grades be if you drill the feeder zones? Is it possible that the already discovered and potentially open-pittable “Silver Coin” resource at surface – with average grades between 1 and 1.6 g/t gold – will be followed by some underground mining?
 
Bob Felder:
The high-grade gold zones are structurally controlled veins and shears, and have been encountered in relatively shallow drilling.
Until we develop a more comprehensive understanding of the geometric controls on these high grade zones, we are not in a position to test for deeper feeder zones. As this information is collected and our understanding improves that could be a goal for future programs, with the idea of someday possibly developing a high-grade, underground mineable deposit.

SB:
Whats the approximate percentage of drilling budgeted to take place outside of the known resource? If these exploration holes encounter similar grades as the currently defined resource, how many new ounces are approximately possible to add to the existing resource solely with the current drill program?
 
Bob Felder:
Our 2011 program has been designed with 20% of the drilling on targets outside of the currently defined resource.
I will not speculate as to how many ounces we could add to the resource except to say that the expansion potential is very good.
 
SB:
How many drill rigs are currently in action and what are your plans in terms of type and number of rigs in use during the program?
 
Bob Felder:
We are currently operating with 2 diamond drill rigs, and plan to stay at this level through the season. We may bring in additional drills later in the season for special projects, such as for directional drilling, or for collection of geotechnical or hydrologic data.
 
SB:
When do you expect the first assays being published? What do you expect to be the approximate time period between the announcements of new assays during 2011? From which part of the deposit will the rigs deliver most samples during the beginning, middle and end of the program? When do you expect the completion of the current exploration & development program? What are the next steps to be achieved after this program?

Bob Felder:
We hope to begin releasing drill results in the coming weeks. Ideally, news flow would follow regularly, say every few weeks, however we cannot predict the outcome of our quality control sampling program, and until we review the data there is no way to predict the timing of the release of the data. Generally speaking, there should be regular news flow beginning in July and lasting through the end of the program and the receipt of all final drill data in late Fall. Our drilling began where we had quickest and easiest access to the project area at the south end of the deposit. As snow continues to melt, we will move into the central and northern areas. The drilling program will continue through approximately mid-October. This year’s $5M program includes additional engineering, metallurgy, and environmental studies and we aim to bring the project to the prefeasibility stage by early 2012.
 
SB:
Kindly inform us briefly about the metallurgical characteristics of the rocks that have been tested so far. When do you expect the first results being published and when do expect the full report that is to be implemented within the prefeasibility study? Kindly let us know if there are any environmental issues identified on the property.

Bob Felder:
The majority of the mineralization is sulfide but not refractory. We have conducted flotation and cyanidation tests which have yielded recoveries of >90% for gold and up to 89% for silver. A combination of flotation followed by cyanidation of the float concentrate, based on current data, yields gold recoveries greater than 80%. Ongoing metallurgical studies are focused on optimizing  recoveries. The results to date are included in our technical report which is filed on SEDAR. A slide from our corporate presentation, available on Jayden’s website, which summarizes metallurgical work to date is copied below [see right]. Our goal is advance to the prefeasibility stage by early 2012. There are no environmental issues identified on the property that are extraordinary or that cannot be mitigated in a routine manner.
 
SB:
As the left picture of the “Silver Coin” property indicates, it is located on a ridge of a mountain or hill. In regards of potential open pit mining, is this steep location to be seen as a positive or negative aspect?
 
Bob Felder:
The steep location presents both challenges and advantages to the project. The optimized design pit has a favorable cylindrical shape and a low strip ratio of 1.65:1, and we have completed preliminary design of facilities layout for the project.
 
SB:
This is an exceptionally low strip-ratio, Mr. Felder - I am zealous as different projects of same deposit types are mined profitable with strip-ratios (waste:ore ratio) as high as 5:1 or even 8:1. As the initial metallurgical testings suggest as well, “Silver Coin” may become one of the lowest-cost gold producers in the prolific Skeena Mining Camp and even B.C. Kindly let us know about the approximate cash operating costs that may be possible considering the initial findings until now.

Bob Felder:
Please refer to the 43-101 Technical report which was filed on SEDAR on March 4, 2011. 

SB:
The “Silver Coin” property is located 25 km north the town Stewart (B.C.) and within the prolific Skeena Mining Camp. Please inform us briefly about the historic and current mining activities of this district, if any infrastructure is around and if you can think of any other advantages being located at this remote part of B.C.
 
Bob Felder:
The flagship historical operations from this district would be the Eskay Creek (over 3M oz. gold and 160M oz silver) and the Silbak-Premier (2M oz. Gold and 43M oz. Silver) mines. Exploration and development activities in the district have been robust, including Seabridge’s KSM project (30M oz. gold, 7B lbs. copper, 133M oz. silver and 210M lbs. molybdenum) and Red Mountain project (0.65M oz. high-grade gold), Silver Standard’s Snowfield project (30M oz. gold, 95M oz. silver), and Castle Resources has announced their plans to put the Granduc mine back into production. Infrastructure near Silver Coin is very good and includes an existing, improved road from Stewart to the project, a source of electricity at the old Premier mill, only 5 km. from the project, a deep water seaport at Stewart with a full loading facility, and a seasoned labor force in the nearby towns of Stewart and Terrace.
These translate to significant capital savings for building a mine in this location.
 
SB:
How much cash does JDN have and what are the plans for it? Do you plan to acquire and/or actively explore and develop other projects besides “Silver Coin”?
 
Bob Felder:
As of Q1 2011 financial statements, Jayden has $0.8M of working capital, however our program for this year will be funded from the proceeds of warrants, which will bring in an additional $6.7M. We are currently focused on advancing Silver Coin to prefeasibility, but remain open to additional exploration and development opportunities.
 
SB:
Who are the biggest shareholders? Kindly summarize the share structure of JDN.
 
Bob Felder:
There are currently 183M shares outstanding. Approximately 35% of those shares are held by one major shareholder and 21% are held by the Board and Management. Fully diluted there would be 264M shares.
 
SB:
Kindly inform us shortly about your professional background and why you decided to devote to JDN. What are the key features of your management and exploration team for the purpose of advancing “Silver Coin” towards Pre-Feasibility stage?
 
Bob Felder:
I am a geologist by training and have spent my 25+ year career in exploration, resource development and senior management positions. I was attracted to Jayden because I perceived Silver Coin as a high quality, underappreciated asset with significant upside potential. Jayden’s team is well equipped to advance Silver Coin through resource development and to prefeasability stage. Our technical leadership is comprised of experienced geologists and we currently use contractors for engineering, metallurgical and environmental work.