Candente Gold Advances new Growth Strategy
May 29, 2020
VANCOUVER, British Columbia, May 29, 2020 (GLOBE NEWSWIRE) -- Candente Gold Corp. (TSXV:CDG) ("Candente Gold” and/or the “Company”) is pleased to advise that the Company is continuing to use the current slowdown in field activities in Mexico to advance our growth strategy by planning underground work on the El Dorado project in Las Minitas, Nayarit while also evaluating and negotiating for additional properties with potential mill feed for the San Dieguito de Arriba (“SDA”) plant in Nayarit.
The El Dorado Property is viewed as a potential source for mill feed given historical production, high grade gold and silver mineralization, proximity to the SDA plant and the Company's path to full ownership of both. Initial work at El Dorado is planned to rehabilitate the historic mine with the objective of providing secure access to underground workings. Candente Gold has obtained a quote for such work for approximately US$20,000. Such rehabilitation would allow the Company to conduct an underground sampling program and to provide access for an accurate underground survey. The results of this work would be used to construct a 3D model of the historic workings, unmined blocks and vein structure in general, to guide potential mining/extraction operations. In addition to underground sampling results, Candente Gold would incorporate drill data from the 2010-2011 drilling campaign, in order to more accurately create a reliable deposit model.
The rehabilitation work program is estimated to take approximately two weeks to complete once work crews are onsite. The initial work will consist of cleaning out, de-watering and reinforcing of the historic mine workings. The Company is closely monitoring the situation in Mexico with regard to COVID19 related travel restrictions and aims to commence work on the project in the coming weeks as soon as it is deemed safe to do so. Land use agreements are in place and crews can be mobilized with minimal lead time.
In addition, the Memorandum of Understanding (“MOU”) which the Company signed with Magellan Acquisition Corp. (“Magellan”) giving Candente Gold the right to earn up to a 100% interest in both the SDA plant and the El Dorado property, both located in Nayarit State, Mexico has been amended such that a payment of US$5,000 is being paid upon signing the revised MOU and the payment of shares upon completion of Due Diligence and a Definitive Agreement to earn 10% interest has been increased from 4,000,000 shares to 5,000,000 shares, all other terms remain the same. The MOU is subject to TSX Venture approval as well as due diligence and execution of a Definitive Agreement, which is to be completed within 60 days of travel restrictions related to the COVID19 Pandemic being lifted within Mexico and between the USA and Canada and Mexico.
About Candente Gold
Candente Gold’s flagship asset is El Oro, a district scale gold project encompassing a well-known prolific high-grade gold dominant silver epithermal vein system in Mexico. The project covers 20 veins with past production and more than 57 veins in total, from which approximately 6.4 million ounces of gold and 74 million ounces of silver were reported to have been produced from just two of these veins (Ref. Mexico Geological Service Bulletin No. 37, Mining of the El Oro and Tlapujahua Districts. 1920, T. Flores*)
Modern understanding of epithermal vein systems indicates that several of the El Oro district’s veins hold excellent discovery potential, particularly below and adjacent to the historic workings of the San Rafael Vein, which was mined to an average depth of only 200 metres.
Joanne C. Freeze, P.Geo., President, CEO and Director and Matthew Melnyk, CPG., Director Operations are Qualified Persons as defined by National Instrument 43-101 for the projects discussed above. Ms. Freeze and Mr. Melnyk have reviewed and approved the contents of this release.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking information (as such term is defined under Canadian securities laws) including but not limited to information regarding the potential for discovery in the El Oro district and other statements that are not historical facts. While such forward-looking information is expressed by Candente Gold in good faith and believed by Candente Gold to have a reasonable basis, they address future events and conditions and are therefore subject to inherent risks and uncertainties including those set out in Candente Gold’s MD&A. Factors that cause the actual results to differ materially from those in forward-looking information include, without limitation, gold prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, potential environmental issues, availability of capital and financing and general economic, market or business conditions. Candente Gold expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
On behalf of the Board of Candente Gold Corp.
“Joanne Freeze” P.Geo.
President, CEO and Director
For further information please contact:
President & CEO
Tel: + 1 (604) 689-1957