Candente Gold Corp. Acquires the Rights to El Oro Mexico Mine Tailings
June 13, 2013
Vancouver, British Columbia, June 13, 2013. Candente Gold Corp. (TSX:CDG) ("Candente Gold") is pleased to report that its Mexican subsidiary company, Minera CCM El Oro Jales S.A. de CV, has signed an agreement for the access and processing rights to historic gold and silver tailings deposits in the El Oro District of Mexico State, central Mexico, where mining grades were in the range of 19 to 80 grams per tonne ("g/t") gold and 240 to 800 g/t silver.
One of the tailings deposits, from the famous Mexico Mine on the San Rafael vein, has an historic, non-43-101 compliant, estimate of over 1,000,000 tons grading 2.80 g/t gold and 75.00 g/t silver for potential contained ounces of over 90,000 oz of gold and 2,500,000 oz of silver. The tailings deposit lies within the town site of El Oro, is immediately adjacent to existing road access and has full power and water services. The tailings cover an area of approximately 5.6 hectares, that once reclaimed will be available for the town's future development.
Terms of the Agreement with the municipality of El Oro and the State of Mexico, involve two stages. The first stage (Phase I) allows the Company a one year period to carry out the necessary test work to ascertain recoveries and potential economic viability of reprocessing the tailings for contributions of US$25,000 upon signing the Agreement and monthly contributions of US$3,000 starting 30 days thereafter. If Candente Gold decides to enter into the reprocessing phase (Phase II), then an 8% Net Profits Interest ("NPI") will be paid to the municipality during the period of operation. If during any months of reprocessing, there is no NPI due then a monthly contribution of US$3,000 will be made. The municipality will use all contributions to fund Social projects.
In keeping with both environmental and social responsibility policies of Candente Gold Corp, the agreement also provides the municipality with a reclamation program, which includes, relocation of the tailings deposit followed by surface reclamation. This would both remediate current potential environmental risks and rehabilitate the land for new municipal use.
Three other tailings deposits also exist within the Municipality of El Oro and are included in the Agreement but require further testing and evaluations prior to making a decision to reprocess and reclaim.
A series of detailed sampling programs were carried out on the Mexico Mine tailings by various companies between the years of 1951 to 1990. The most thorough sampling program was conducted in 1951 by the Cooperativa de Las Dos Estrellas and included a total of 184 drill holes for a total of 2,162.7 meters. Work by Dos Estrellas indicated that the average grade of the tailings deposit was 2.80 g/t gold and 75.0 g/t silver.
|Cooperativa de Las Dos Estrellas*|
|Drill Hole Meters (184 holes)||2,162.70|
|Humidity % 7.6||85,470|
|Contained kg of gold||2,857.62|
|Contained kg of silver||77,935.050|
|Contained oz gold||91,873.92|
|Contained oz of silver||2,505,651|
In 1990, Luismin conducted a verification sample program of the Mexico Mine tailings deposit, including 22 infill and twin holes for a total of 297.7 meters. The average grade of the tailings deposit calculated by Luismin was 2.93 g/t gold and 89.0 g/t silver.
Candente Gold Corp. plans to conduct a thorough Due Diligence program on the Mexico Mine Tailings involving verification drilling and further metallurgical test work to confirm projected metal recoveries, which will be used to evaluate the technical and economic viability of a tailings reclamation and reprocessing operation.
Satellite Photo of Municipality of El Oro, the Mexico Mines Tailings deposit and Historic Mine Workings
The Mexico Mine, located along the northern portion of the San Rafael vein, mined grades of more than 19 g/t gold and more than 240 g/t silver. The vein had a width of between 4 to 21 meters and was cut by a later and much higher grade 5 meter wide vein, the Poniente Vein that graded as high as 80 g/t gold and 800 g/t silver. In general, the Mexico Mine had a higher silver to gold ratio than the other mines to the south on the San Rafael vein.
The El Oro - Tlalpujahua Districts collectively host at least twenty precious metals veins with past production in an overall vein field of fifty-seven veins that form an ENE-WSW mineralized structural corridor measuring 6.5 km from east to west and 4.0 km from north to south. 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. One of these veins, the San Rafael along with related hanging-wall, footwall splays and tension veins produced over 4 million ounces of gold and 44 million ounces of silver from the upper 150 to 250 meter mine levels. Historic mine grades on certain portions of the vein were as high as +300 g/t gold and +6,200 g/t silver. Mine levels occur from 150 meters below a post-mineral cap, up to a depth of 500 meters below surface.
About Candente Gold
Candente Gold's flagship asset is El Oro, a district scale gold project encompassing the largest and most prolific high grade gold dominant epithermal vein system in Mexico.
Modern understanding of epithermal vein systems strongly indicates that several of the El Oro district's veins hold multi-million ounce discovery potential, particularly below the historic workings of the San Rafael Vein, which was mined to an average depth of only 200 metres.
Candente Gold also holds an extensive portfolio of 100% owned, early to mid-stage; high and low sulphidation epithermal gold projects in Peru. Many of these projects have significant exploration completed and targets ready to be drill tested.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Candente relies upon litigation protection for forward-looking statements.
CAUTIONARY NOTE TO U.S. INVESTORS
We advise U.S. investors that this news release uses terms that are not recognized by the United States Securities and Exchange Commission ("SEC"), including "mineral resources", "measured resources", "indicated resources" and "inferred resources". The estimation of measured and indicated resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that mineral resources in these categories will be converted to reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically mineable, or will be upgraded into measured or indicated mineral resources. U.S. investors are cautioned not to assume that mineral resources in any of these categories will be converted into reserves.
On behalf of the Board of Candente Gold Corp.
"Joanne Freeze" P.Geo.
President & CEO
For further information please contact:
Manager, Investor Relations
mobile: +1 (604) 306-8477
local: + 1 (604) 689-1957 ext 3
toll free: 1 (877) 689-1964 ext 3
Investor Relations, Peru
Tel.: (511) 715-2001 ext 107
Fax: (511) 717-1233