Sun River Gold Commits to Financing the Re-Processing of the Historic Tailings at El Oro
November 9, 2017
Vancouver, British Columbia / TheNewswire / November 9, 2017. Candente Gold Corp. (TSXV:CDG) ("Candente Gold" and/or the "Company") is pleased to announce that it has entered into a binding letter agreement with Sun River Gold Corp. ("Sun River" or "SRG"), a private Nevada corporation, to grant Sun River the right and option to further test and, if proven economic, develop and operate the Company's tailings project in El Oro Mexico (the "Tailings Project"), through Candente Gold?s Mexican subsidiary, CCM EL Oro Jales, S.A. de C.V. ("CCM El Oro Jales"), according to the agreement CCM EL Oro Jales executed with the Municipality of El Oro, subject to receipt of regulatory approval.
In order to exercise the option, Sun River shall make staged payments, over 28 months, totalling US$500,000 commencing upon signing of the letter agreement (US$170,000 being committed), bring the mine tailings properties into commercial production within 36 months of the effective date of the option agreement, and grant to the Company a 5% of net profits ("NPI") Life of Mine royalty (the "Candente Royalty") on production from the properties. Upon making the totality of the staged payments and if commercial production has been achieved, Sun River will indirectly acquire a 100% interest in CCM El Oro Jales.
Sun River will also be responsible for the obligation to pay an additional 8% NPI to the Municipality of El Oro (the "El Oro Royalty"). Candente Gold (through its Mexican subsidiary CCM El Oro Jales) has the right to recover all available gold and silver from the Mexico mines tailings deposit and pay to the Municipality of El Oro an 8% Nets Profits Interest royalty, after retaining the first US$1.5M from the El Oro Royalty (see News Release No. 063 dated September 14, 2017). Sun River must direct the first US$1.5M from the El Oro Royalty to the Company. Therefore, upon commercial production, the Company will start receiving a 5% NPI royalty and the first US$1,500,000 of the El Oro Royalty.
If at the end of the option period, commercial production in the tailings retreatment operation has not been achieved, the parties will engage a mediator to confirm that SRG has in fact made its best efforts to bring the tailings retreatment into production. In the event it is determined that best efforts were made by SRG, then the Company will extend the term of the agreement by a further 2 years by the end of which time if production has not started the agreement will terminate and all rights granted to Sun River will terminate, with no further responsibility to Candente Gold.
About Sun River Gold Corp.
Sun River Gold is a private mining company registered in Nevada and owned and operated by experienced gold mining investors, mineral economists, metallurgists, metallurgical engineers and business development entrepreneurs. The Board of Sun River Gold currently comprises four owners/Directors most of whom have fifteen or more years working in Mexico exploring, permitting and operating mines.
Jim Bradbury - Metallurgical Engineer, Colorado School of Mines. Thirty years evaluating & managing gold mines for NA Degerstrom. While at Degerstrom, he designed and engineered numerous successful gold and silver heap leach and milling projects such as Shoshone Silver, Toiyabe, Mother Lode, Spot/Clay Peters, Soda Springs silver/gallium, Fondaway Canyon, Goldstrike Utah, and others.
Dave Herdrick - B.A. Finance and Geology, Eastern Washington University. Twenty five plus years' in Executive roles financing, permitting and startup of re-processing and heap leach operations in the USA and Mexico. Developed projects from start-up phase to production and raised several millions of dollars from private and public sectors. Executive roles with Vulcan Mining Inc., USA. and Minera Pitilla De Plata; S.V. Copper project; and Silver Scott Mines Gold Heap leach, all in Mexico.
Hans von Michaelis, an insider of the Company, has a PhD. in Geochemistry UCT 1970 and a 50 year career in mineral processing innovations and business development consulting. He is the founder and President of Randol International Ltd. and co-founder of Vulcan Mining- (now Alamos Gold (TSX-AGI). Hans is a researcher, author and producer of innovations in gold & silver recoveries.
Kevin Sullivan - Geologist, Victoria University of Wellington. Thirty five year exploration career including the discovery of million ounce plus gold deposits at Mt Leyshon, Australia and San Jose de Gracia and Caballo Blanco in Mexico. Fifteen years working in Mexico exploring permitting and operating mines.
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.
In addition to the hard rock potential, Candente Gold is investigating the potential to recover gold and silver from the Mexico Mine Tailings which 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.
Candente Gold is dedicated to being a responsible Community partner.
*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 available at www.sedar.com.
Joanne C. Freeze, P.Geo., Director and CEO and Sean I. Waller, P.Eng., Vice President are Qualified Persons as defined by National Instrument 43-101 for the project discussed above. Ms. Freeze and Mr. Waller 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 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.
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
Copyright (c) 2017 TheNewswire - All rights reserved.