Due Diligence Team Successful on Western Mexico Projects
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Due Diligence Team Successful on
Western Mexico Projects
Vancouver, British Columbia, July 9 th, 2020. Candente Gold Corp. (TSXV:CDG) ("Candente Gold” and/or
the “Company”) is pleased to advise that due diligence visits have been conducted at both the San Dieguito
de Arriba processing plant ("SDA plant") and the hist oric El Dorado Mine both in Nayarit, Mexico. The
examination of the SDA plant found all key components in good order and, as expected, identified the need
for the replacement of various working parts for which a cost estimate is being prepared. The historical
mine, La Hundida, at El Dorado, was accessed both on surface and underground.
In April 2020, Candente Gold signed a Memora ndum of Understanding ("MOU") with Magellan
Acquisition Corp. ("Magellan") giving Candente Gold the right to earn up to a 100% interest in both the
SDA plant and the El Dorado property. The site visits to the SDA plant and El Dorado Project represent the
physical inspection portion of Candente Gold’s due di ligence on the properties. The reviews will provide
the Company with valuable information to progress toward a definitive agreement and implementation of
the initial stages of our growth strategy. Legal due di ligence work is ongoing although preliminary reviews
have not identified any concerns.
In the historical La Hundida Mine, underground workings were found to be in stable condition. Rock chip
sampling was conducted and samples were collected and sent to Altiplano Gold Silver SA de CV laboratories
in Matehuala, San Luis Potosi, Mexico for assay and metallurgical testing. Due to the current COVID19
travel restrictions, the Company’ s Qualified Persons cannot verify the Quality Assura nce and Quality
Control (“QA-QC”) procedures carried out during the sampling process but understand that it was overseen
by Ing. Gerardo Moreno, an experienced Geological Engineer and Project Manager with more than 35 years
of experience with mining projects.
The results of these tests along with recommendations for rehabilitation work and projections of ongoing
operating expenses will provide the basis for a cost esti mate to return the plant to operational status with
feed material from the El Dorado Property. The comp any is targeting a 1000t bulk sample for an initial
trial run.
The SDA plant 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. Magellan acquired the SDA plant from
Rose Petroleum in November 2017 through the purchase of its subsidiary, Minerales Vane, for a value of
$1.5M ($1M cash plus shares). Magellan only operated the plant in February 2019 when processing a bulk
sample of approximately 600 tons for a tolling opportunity. While the results of the test were encouraging,
the supplier subsequently experienced challenges in pr oviding feed to the plant on a consistent basis and
therefore the plant has not operated since.
Magellan entered an option agreement on the El Dora do property in August of 2018, with Ingenieros
Mineros, S.A. de C.V. (“IMSA”) and modified the agreement January 15, 2020. IMSA retains a negotiable
NSR of 3.5% and Magellan is obligated to either pe rform US$20,000 of work on the property in 2020 and
$25,000 in 2021 or make payments of US$5,000 per quarter. Under the Definitive Option Agreement with
Magellan, Candente Gold would assume these obligations.
About Candente Gold
Candente Gold has launched a comprehensive growth st rategy 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.
NEWS RELEASE
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The financial benefits from Western Mexico operatio ns and the addition of specialized personnel will
translate across platforms to stre ngthen 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 proj ect encompassing a well-known prolific high-grade gold dominant gold-
silver epithermal vein system in Me xico. 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 indica tes that several of the El Oro district’s veins hold
excellent discovery potential, partic ularly 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 Instrume nt 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 info rmation (as such term is defined under Canadian
securities laws) including but not li mited to information regarding the potential for discovery in the El
Oro district and other statements th at are not historical facts. While such forward-looking information
is expressed by Candente Gold in good faith and belie ved by Candente Gold to have a reasonable basis,
they address future events and conditions and are th erefore 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-l ooking information, whethe r 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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