Due Diligence Team Mobilized on Western Mexico Projects
VANCOUVER, British Columbia, June 24, 2020 (GLOBE NEWSWIRE) -- Candente Gold Corp. (TSXV:CDG) ("Candente Gold” and/or the “Company”) is pleased to advise that a due diligence team has been mobilized to both the San Dieguito de Arriba processing plant ("SDA plant") near Acaponeta, Nayarit, Mexico and the historic El Dorado Mine in Las Minitas, Nayarit.
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Due Diligence Program
The Company was closely monitoring the situation in Mexico with regard to COVID-19 related travel restrictions and is very pleased that it is now deemed safe to conduct the due diligence required as part of the acquisition of the both the SDA plant and the El Dorado property.
In April 2020, Candente Gold signed a Memorandum of Understanding ("MOU") with Magellan Acquisition Corp. ("Magellan") giving Candente the right to earn up to a 100% interest in both the SDA plant and the El Dorado property.
Specifically, the work program is intended to provide a complete assessment of the equipment at the SDA plant as well as a cost estimate to return the plant to operation. Likewise, the El Dorado Project visit will serve as a due diligence visit but will also provide recommendations on the type and scope of work required to begin extracting material to feed the SDA plant.
Grupo Constructor Germo of Durango City, Mexico will be conducting the work under the guidance of Ing. Gerardo Moreno, an experienced Geological Engineer and Project Manager with more than 35 years of experience with mining and civil engineering projects. His experience includes full project life cycle design, from concept study to commissioning and operations including mineral processing plants. Ing. Moreno’s team for the SDA visit includes Ing. Granado, Metallurgist and Ing. Zapien, Civil Engineer. They will be accompanied by Ing. Luis Alberto Hernandez, whom was the Plant Manager at the SDA during its operational period. For the El Dorado Project visit, Ing. Moreno will be accompanied by Ing. Cuevas Galván, an expert in underground mining.
San Dieguito de Arriba Processing Plant (“SDA Plant”)
The SDA plant is a central element in Candente’s growth strategy to provide production revenue and a stable operational base for the company. The plant has the capacity to treat up to 200 tpd of material via a flotation circuit. It also includes a Merrill Crowe circuit for the treatment of concentrates. The mill was operational from 2007 (by Minerales Vane S.A. de C.V.) until April 2017, processing ore from various operators in the region on a toll and partnership basis.
The SDA plant was again operational as recently as 2019 when processing of a bulk sample of approximately 600 tons was completed for a tolling opportunity in February 2019. While the results of the test were encouraging, the supplier experienced challenges in providing mineralized ore on a consistent basis and therefore the mill has not operated since.
El Dorado Project
The El Dorado vein system has a history of small-scale mining from two veins. Mining in the area has been documented during the periods of: 1900 to 1927; 1965 to 1975; 1975 to 1983; and 1985 to 1990. From 1985 to 1990 ore was shipped to the El Venado processing plant located near Ruiz, Nayarit, for toll treatment to produce a flotation concentrate. Historic metallurgical balance sheets from this plant indicate the grade of the material was on the order of 5 g/t Au and 70 g/t Ag.
The principal vein system is the El Dorado epithermal vein trend which has been traced over a strike length of 3.5 kilometers. This structure hosts multiple mineralized zones including high-grade, and lower-grade bulk tonnage stockwork zones extending over tens of meters in width in both the hanging wall and footwall of the vein system. In addition, high level silicification and argillic alteration on surface indicate depth potential to the mineralizing system. (Magellan Gold Corporation, Form 10-K Annual Report US SEC dated Dec 31, 2018, File No. 333-174287)
The El Dorado Property is viewed as a high priority 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.
In a report dated May 1986 by Compañia Fresnillo, S.A. de C.V., a list of 46 underground samples reported an average grade of 7.88 g/t Au and 55 g/t Ag for the three levels of the El Dorado Mine with vein widths ranging from 1.2 meters to 4.0 meters. (source: http://www.prosperosilver.com/s/QwikReport.asp?IsPopup=Y&printVersion=now&XB0B=424614)
Neither Magellan nor Candente Gold have been able to verify the historic data.
The El Dorado vein system was explored and drilled by Prospero Silver in 2010-2011 with a total of 4,950 meters drilled in 28 diamond core holes. The drilling was reported to have intersected multiple steeply-dipping silicified mineralized zones extending from near-surface to a drilled depth of 150 meters. (source: http://www.prosperosilver.com/s/QwikReport.asp?IsPopup=Y&printVersion=now&XB0B=424614) While a resource calculation was reported to have been conducted Candente Gold must review further before commenting on it.
About Candente Gold
Candente Gold has launched a comprehensive growth strategy to build a cash flowing business platform and gain access to properties with near surface exploration potential while maintaining El Oro as our flagship asset and an integral part of the overall growth strategy. The acquisition of the SDA Plant and the El Dorado historic mines signifies an important first step.
The financial benefits from Western Mexico operations and the addition of specialized personnel will translate across platforms to strengthen our efforts to explore and potentially mine. The Company is currently evaluating properties that are complimentary to the SDA plant and El Dorado Property.
El Oro is 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.
Forward-looking Information
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:
Joanne Freeze
President & CEO
Tel: + 1 (604) 689-1957
info@candentegold.com
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