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For speculative investors interested in comfortable investing in a low-priced, development stage mining company, sector specialist Brien Lundin, editor of Gold Newsletter, looks at a small-cap resources play.

Well-managed, well-funded, and brimming with potential, Cayden Resources (TSV:CYD) (OP:CDKNF) is a great play on discovery in one of the world's most productive countries for precious metals: Mexico.

Cayden owns two large and highly prospective projects in Mexico: Morelos Sur in Guerrero State and El Barqueño in Jalisco State.

Morelos Sur is strategically located near Los Filos and El Bermejal, two of industry major Goldcorp's (GG) most profitable gold mines.

In fact, sections of Morelos Sur lie directly within the path of either obvious extensions of open pit operations on these mines or of potential extensions to their leach pad operations.

Already, Cayden has reached an agreement with Goldcorp's Mexican subsidiary to sell a portion of Morleos Sur. That transaction will keep the junior cashed up for some time to come and will help to finance the ongoing work at El Barqueño.

There's still more property at Morelos Sur that could potentially change hands for cash. There's also a large magnetic anomaly (La Magnetita) that has yet to be fully explored. All the major gold discoveries in the Guerrero Gold Belt have been hosted by similar anomalies.

And while the company's current focus is on El Barqueño, the full promise of Morelos Sur (and particularly La Magnetita), has yet to be assessed. More exploration needs to be done to see if La Magnetita might host the belt's next large gold mine.

In the meantime, drilling is now in full swing to follow up on highly promising trench results at El Barqueño. The ongoing, 25-hole program is designed to test for gold on a variety of structures that have seen extensive trenching in 2013.

While drilling progresses at Azteca, trenching, mapping, and other surface work continues on the Barqueño I and Barqueño II concessions. This is a district-scale project that recently got bigger with the acquisition of the Barqueño II and Barqueño III concessions.

Cayden has the money and the moxie to find something big here. Given the players involved, many of whom were responsible for sister company, Asanko Gold's Esaase gold deposit in West Africa, I have high hopes for this project.

The company's share price has remained very strong in the face of market volatility, an indication of smart, strong-handed shareholders. It remains a buy.

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Tickers Mentioned: Tickers: CYD, CDKNF

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