Candente Gold Corp.: High Gold and Silver Grades Confirmed for the El Oro Mine Tailings
June 26 2014 - 4:00AM
Marketwired Canada
Candente Gold Corp. (TSX:CDG)(LMA:CDG) ("Candente Gold" or "the Company") is
pleased to report that an auger and channel sampling program has been completed
on the Mexico Mines tailings deposit under option from the municipality of El
Oro in Mexico.
An average grade of 2.95 grams per tonne ("g/t") gold and 60.70 g/t silver was
obtained from the 101 auger/vertical channel samples collected from the Mexico
Mine Tailings dump at the El Oro Project. The base of the tailings in the
northwest average 3.49 g/t gold and 80.34 g/t silver. Approximately 8% of the
samples collected average greater than 4.0 g/t gold and as high as 4.81 g/t
gold. Also 8% of the silver averages greater than 100 g/t and as high as 188
g/t. In addition, 21% of the samples average greater than 3.5 g/t gold and 22%
average greater than 80 g/t silver. All samples were collected over 1.0 metre
sample lengths. A total of 22 holes were sampled by hand auger to a 3.0 metre
depth. Channel samples were collected predominantly from the base of the
tailings toe upwards for a distance of 5 to 10 metres vertically. (See
map/airphoto at the following address:
http://media3.marketwire.com/docs/El_Oro_Project_Mexico-Mine-Tailings.pdf)
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Location in Tailings
Sample Type No. Pile Gold g/t Silver g/t
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Auger Samples 47 Top to 3m depth 2.79 55.10
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Vertical Channel Samples 54 Mixed top and toe 3.08 65.57
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Auger + Channel Samples 101 Evenly Distributed 2.95 60.70
Total
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Vertical Channel Sections
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2014-SEC 1W-CHAN (10m) 10 Lower toe in NW 3.49 80.34
----------------------------------------------------------------------------
2014-SEC 3E-CHAN (4m) 4 Lower in NE 3.31 91.13
----------------------------------------------------------------------------
2014-SEC 7E-CHAN (5m) 5 Lower toe on E side 2.95 86.26
----------------------------------------------------------------------------
Note: all samples 1.0m in length
The results of this initial auger/vertical channel sampling program support the
tailings historical gold and silver grades reported by previous owners. With
this verification completed, work is now in progress to develop a current
Inferred Resource Estimate for the tailings.
As reported on April 15, 2014 (News Release 034) JDS Energy and Mining Inc.
("JDS") conducted a high level conceptual study for a Tailings Recovery
Operation ("TRO") near the El Oro site. The positive study results reported by
JDS indicate that the Mexican mine tailings from El Oro have the potential to
meet the Company's objective which is to identify an opportunity to develop cash
flow in the near term with relatively low capital costs.
Results from the auger/vertical channel sampling program will be combined with
the next stage of study by JDS, which is expected to lead to an increased level
of confidence in the economic potential of the El Oro Mexico mine tailings
deposit.
A subsequent drilling program is planned to provide additional confirmation of
the grade continuity at depth and provide additional samples for metallurgical
test work. The metallurgical test work program will determine optimal
recoveries; establish the process flowsheet and reagent consumption levels; and
define the detailed mineralogical characteristics of the tailings dump.
Environmental Impact Assessment ("EIA") studies and the drill permitting process
were initiated in April 2014 and the drill permit was received on June 20, 2014.
Background on the Tailings
In 2013, Candente Gold acquired the right to process historic tailings left from
pre-1930s milling of ores from the Mexico Mine in the El Oro District in Mexico
State, Mexico. The tailings have had extensive historic assessments including
drill testing and metallurgical test work demonstrating that it is a valid
exploration target with the potential for 800,000 to 839,000 tonnes grading from
2.80 to 2.95 grams per tonne gold (potential for 79,000 to 90,000 oz of gold)
and from 75.00 to 89.00 grams per tonne silver (potential for 2,000,000 to
2,600,000 oz of silver). The tailings deposit lies within the town of El Oro and
covers an area of approximately 5.6 hectares that once reclaimed, will be
available for the town's future development. The tailings are adjacent to
existing road access, power and water services. 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.
The above potential tonnage and grade estimation of the Mexico mine tailings
exploration target is historical in nature and Candente Gold needs to conduct
further work to verify these historic results. This estimation is being used for
conceptual purposes only and should not be relied upon as insufficient recent
sampling has been carried out to define an Inferred Mineral Resource using
Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") resource
categories (CIM, Nov 2010). The homogenous nature of tailings, at least in a
lateral sense, suggests that a sample population of the tailings could be
systematically verified by a grid based auger and trench sampling program such
that grade continuity could be predicted with confidence and contained metals
may be better verified with a reasonable level of reliability. This work could
be sufficient to bring the historical estimate into a current Inferred Mineral
Resource category. Further verification with a drilling program using
appropriate QA/QC procedures consistent with CIM Estimation of Mineral Resources
and Mineral Reserves Best Practice Guidelines reference in NI 43-101, including
a reliable determination of the specific gravity and further metallurgical test
work is required to identify with more certainty, the quantity and grade of the
reported estimate to meet an Indicated Mineral Resource category under CIM
Definition Standards. A qualified person has not yet done sufficient work to
classify the historical estimate as a current Inferred Mineral Resource, and the
Company is not treating the historical estimate as current mineral resources.
For more details, you may view our El Oro Tailings Update Presentation at:
http://www.candentegold.com/s/presentations.asp
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. 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.
Modern understanding of epithermal vein systems strongly indicates that several
of the El Oro district's veins hold potential for discovery of significant gold
and silver mineralization, particularly below the historic workings of the San
Rafael Vein, which was mined to an average depth of only 200 metres and produced
4 million ounces gold and 44 million ounces of silver.
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.
Qualified Persons
Joanne C. Freeze, P.Geo., President and CEO of Candente Gold, Sean I. Waller,
P.Eng., Vice President of Candente Gold and Nadia M. Caira, P.Geo. of World
Metals Inc. (formerly Argonaut Gold Odyssey Inc.) are the Qualified Persons as
defined by NI 43-101 for the project discussed above and have read and approved
the contents of this release.
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.
On behalf of the Board of Candente Gold Corp.
Joanne Freeze, P.Geo., President & CEO
A map is available on the Marketwired website at the following address:
http://media3.marketwire.com/docs/El_Oro_Project_Mexico-Mine-Tailings.pdf
NR 036
FOR FURTHER INFORMATION PLEASE CONTACT:
Candente Gold Corp.
Walter Spagnuolo
Manager, Investor Relations
Mobile: +1 (604) 306-8477 or Local: + 1 (604) 689-1957 ext 3
Toll free: 1 (877) 689-1964 ext 3
info@candentegold.com
Candente Gold Corp.
Nataly Reategui
Investor Relations, Peru
(511) 715-2001 ext 107
(511) 717-1233
nreategui@candente.com
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