Candente Gold Receives Expression of Interest for Processing Agreement of Mexico Mine Tailings
February 12, 2015
Vancouver, British Columbia, February 12th, 2015. Candente Gold Corp. (TSX:CDG) ("Candente Gold" or the "Company") is pleased to announce it has received an Expression of Interest ("EOI") for a proposed Processing Agreement for the Mexico Mine Tailings Reprocessing Operation planned at El Oro, Mexico.
The EOI was received by the Company from Minera Arcu S.A. de C.V ("Minera Arcu"), which has extensive experience and technical expertise in developing and operating tailings reprocessing projects in Mexico. In addition to their expertise, Minera Arcu proposes to invest capital required in respect of the acquisition and installation of equipment related to both testing and operating of the mineral concentration and recovery processes for the Tailings. During the testing period Candente Gold would receive all revenues from gold and silver sales. If the test work is successful, then Candente Gold will evaluate the installation of a full size plant.
The testing would be conducted in two stages. Stage One would start as soon as a definitive agreement is in place and would process up to 50 tonnes through a pilot plant. Stage Two would start as soon as permits are received, which is expected within 30 days from the date of application (January 29, 2015). During Stage Two it is anticipated that approximately 2500 tonnes would be processed.
Joanne Freeze, President and CEO said the Company is very pleased to have an opportunity to assess on-site a potentially viable option for reprocessing the Tailings without requiring the Company to provide capital expenditures for an operation. Concurrently, the Company would continue with testing of other methods for recovery in order to compare the Company's options for maximum profitability from the Tailings.
Candente Gold reserves the exclusive right to decide to proceed or not with the Minera Arcu process, or to proceed with an alternate method of reprocessing the Tailings if such alternate method, in the sole determination of the Company, is considered technically superior and/or projected to provide better financial returns to Candente Gold.
The Mexico Mine Tailings contain an Inferred Resource* of 1,267,400 Tonnes grading 2.94 Au g/t, 75.12 Ag g/t containing 119,900 ounces of gold and 3,061,200 ounces of silver.
Note: Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the accuracy of the estimate. For more information see "National Instrument 43-101 Technical Report on the Inferred Mineral Resource Estimate of the Mexico Mine Tailings" prepared by Nadia Caira, P.Geo. and Allan Reeves, P.Geo., dated August 25, 2014 with an effective date of July 8, 2014 (the "Technical Report") available at www.sedar.com.
Joanne C. Freeze, P.Geo., CEO is the Qualified Person as defined by National Instrument 43-101 for the project discussed above. Ms. Freeze has reviewed and approved the contents of this release.
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 silver epithermal vein system in Mexico. Modern understanding of epithermal vein systems indicates that several of the El Oro district's veins hold multi-million ounce 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.
In addition to the exploration potential at El Oro, Candente Gold has acquired the Mexican Mine Tailings Deposit. The Company's current corporate strategy is to process the tailings to generate short-term cash flow and then focus on remnant high grade mineralization left behind by historic mining and, in the future, return to exploration concentrating on 31 recently-delineated targets for new mineralized veins or zones.
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 processing of tailings to generate short-term cash flow, 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.
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:
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