Candente Gold signs Profit Share Agreement for the Cocula Gold Project Western Mexico
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Candente Gold signs Profit Share Agreement for the
Cocula Gold Project Western Mexico
Vancouver, British Columbia, September 10th, 2020. Candente Gold Corp. (TSXV:CDG) ("Candente Gold”
and/or the “Company”) is pleased to announce the signing of a Letter of Intent (“Agreement”) to enter into
a profit sharing agreement on the Cocula Gold Project (“Cocula”) in Jalisco State, Mexico whereby Candente
Gold will be entitled to receive 70% of any potential profits that may be derived from mining and processing
of the deposit. The addition of Cocula to our asset base represents another critical step in the Company’s
growth strategy for Western Mexico. In addition to untested exploration potential, the Project contains
gold mineralization at surface, hosted in quartz veins, stockwork zones and oxidized, mineralized breccias .
Timmins Gold Corp. explored the Cocula property between 2007 and 2011 through a series of
comprehensive exploration programs which included geological mapping, geochemical sampling, trenching
and 1,974 meters (“m”) of Reverse Circulation (“RC”) drilling. Significant results included 54m grading
4.97 grams per tonne (“g/t”) gold in a trench across the center of the mineralized area. An RC hole drilled
beneath this trench encountered 37.5m grading 1.3 g/t gold including 7.5m grading 5.8 g/t from surface to
a 7.5 m depth. Near and at-surface, mineralization delineated by drilling and trenching has been traced for
at least 800m along strike within a NW-SE trending fault zone.
To the Company’s knowledge, a NI 43-101 compliant mineral resource estimate has not been completed for
the Cocula property however Timmins Gold Corp. conducted various in -house resource estimates. A
qualified person has not done suffi cient work to classify the historical estimates as current mineral
resources and therefor the Company is not treating the historical estimates as current mineral resources.
Historical reviews of the potential tonnes and the potential grades quoted below a re conceptual in nature.
In December of 2008, consultant ( Pedro Teran) contracted by Timmins Gold Corp. , estimated an internal
resource estimate for the portion of the deposit delineated by their RC drilling and trenching results,
including assays from 1 ,552 surface samples. The geologist applied a geological model appropriate to the
observed mineralization to build a MineSight block model and derived an estimate of 5,796,023 tonnes
grading 0.58 g/t gold containing 108,081 ounces (“oz”) gold (the cutoff grade was not defined and CIM
categories are not clear).
The Company has reviewed the above as well all reports and data available and considers there is potential
for conceptual exploration targets including a lower grade bulk tonnage , potentially leachable deposit as
well as a higher grade/lower tonnage core of the deposit. Based on all of the existing exploration data and
previous resource estimates to date the Company believes the Conceptual Exploration Targets have
potential for: 500,000 to 6,000,0 00 tonnes grading from 0.5 g/t Au to 2.75 g/t Au containing between
50,000 and 110,000 oz Au with secondary credits from silver, lead, zinc and copper. The above is based on
exploration to date by Timmins and other and does not include additional explorat ion potential. The
potential quantity and grade described above i s conceptual in nature, that there has been insufficient
exploration to define a mineral resource and it is uncertain if further exploration will result in the target
being delineated as a mineral resource.
The Agreement provides for the following payments to be made by Candente Gold to the owners (the Lopez
family) of the Cocula Gold Project:
1. $10,000 upon signing of the Letter of Intent;
2. $20,000 upon signing of a Definitive Agreement (“DA”) and completion of due diligence within 60 days;
3. $210,000 in staged payments to be made every 6 months over a 36 month period starting 6 months after
signing the DA.
NEWS RELEASE
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4. Upon commencement of production, the owner of the Property will receive a minimum consideration of
$25,000 per quarter deductible from mining profits for each quarter.
It will be Candente Gold Corp.’s responsibility to put the Property into production and the Lopez Family
will retain 25% of the profits derived from mining , processing and product sales . The Company has also
agreed to pay 5% of profits to Mingeo International as a finder’s fee such that the Company will have the
rights to retain 70% of all profits. Mingeo is a non-arms length party.
In addition, the Company welcomes Mr. Barney Lee to the team overseeing operations in Western Mexico.
Barney has over 30 years of experience working in operations in Mexico with numerous companies
including the El Sauzal Mine for Glamis Gold and Goldcorp ; as Director for Premium Exploration
operations in Nayarit and Jalisco and on the Cocula Property for Timmins Gold. Most recently Mr. Lee has
been working on the Los Cardones Project for the Invecture Group and on the Guadalupe de los Reyes
Project for Prime Mining . He has also worked for Barrick Gold, Kennecott and Exc ellon Resources.
Additionally, Mr. Lee is skilled in dealing with Mexican land tenure, fiscal and accounting matters. His role
going forward will be to manage operations in Western Mexico.
The Project area is located within the Ameca Mining District of Jalisco State which is home to Agnico Eagle’s
El Barqueño Project and Endeavor Silver’s Terronera Project. It is hosted in a Mesozoic age volcano -
sedimentary package of the Guerrero Terrane intruded by dioritic and granitic stocks. Mineralization is
hosted in multi-lithic breccia within a NW-SE trending fault zone that has been traced for at least 800m in
strike length. The fault zone coincides with the contact of andesites from the volcano-sedimentary package
and a granodioritic stock. A younger sequence of Tertiary age andesites and basalts locally covers portions
of the host units.
About Candente Gold
Candente Gold has launched a comprehensive gro wth strategy to build a cash flowing business platform
and gain access to properties with near surface exploration potential while maintaining El Oro as its 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 gold-
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 Person s as defined by National Instrument 43 -101 for the project s 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
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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 and other statements
that are not historical facts. While such forward -looking information is express ed 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 equi pment, 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 forw ard-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
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