Due Diligence Team Mobilized on Western Mexico Projects
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Due Diligence Team Mobilized on
Western Mexico Projects
Vancouver, British Columbia, June 24th ,2020. 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.
http://www.candentegold.com/i/misc/2020-06-24-SDA-DD-team.jpg
Due Diligence Program
The Company was closely monitoring the situation in Mexico with regard to COVID19 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 th e 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
NEWS RELEASE
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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 zo nes including high-
grade, and lower-grade bulk tonnage stockwork zones extend ing 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 g old 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&XB
0B=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&XB
0B=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
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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 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
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, a vailability 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
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