Drilling will test several targets in the Oriente Zone, which is the eastern extension of the prolific El Oro ore shoot trend. The Oriente Zone has had no mining and little exploration and is covered by younger volcanic rocks, which mask favourable host rocks and potential veins. Five exposures of the favourable host rocks have been found and all of these have extensive alteration and veining typical of the El Oro gold-silver veins.
Phase I drilling will also test both down-dip and lateral extensions of four of the most prolific veins in the El Oro Camp: San Rafael, Verde, Borda and Corona. Mining of these veins is reported to have stopped for financial reasons (see below*) and not due to lack of ore. The San Rafael vein produced in excess of 5 million gold equivalent ounces (oz) over 45 years and had an average production grade of 10 grams gold per tonne (g/t Au) and 120 grams silver per tonne (g/t Ag) over an average width of 10 m. Production occurred over a vertical depth of 250 m and over a strike length approaching 3.5 kilometres (km).
*The veins on the El Oro property have been worked since the late 1700's. The height of activity began in 1904 with the Gold Mining & Railway Company. For 33 years four companies produced gold and silver, predominantly from the San Rafael vein. In excess of 13 million tonnes grading 10.8 grams gold and 160 grams silver were produced. In 1938, all of the mines and properties were acquired by the Las Dos Estrellas Mining Company. Shortly thereafter, a tailings dam collapsed and compensation costs bankrupted the Las Dos Estrellas Mining Co. so the properties were transferred to the workers. Operating as individuals proved to be very costly resulting in closure of the mines in 1959.
The El Oro Mines have collectively been described as some of the most significant high-grade, gold-silver producers in the history of Mexican mining, with past production of approximately 20 million gold equivalent oz. El Oro hosts the largest known vein systems in the region with past production from veins varying between 1 and 70 m in width.
Geophysical surveys are also underway on the property and are expected to delineate additional drill targets. These surveys and their results will be discussed in future.
The Option agreement, entered into jointly (50/50) by Canaco and Candente, gives the combined companies the right to earn up to a seventy percent (70%) interest in all of the 24 El Oro exploration and mining concessions (14,950 hectares), held by Luismin. (See News Release 166, dated May 12th, 2006.) Funds are in place for completion of the Phase I drilling and all year one option obligations.
Additional information on the companies and the El Oro property is available at www.candente.com and www.canaco.ca. Candente and Canaco have chosen to jointly explore at El Oro to take advantage of the companies combined abilities and successful track records in exploration, discovery, project development and mining operations. The companies have formed a Mexican subsidiary named Minera CCM SA de CV to operate this joint venture. Michael J. Casselman, Director, Candente and Andrew Lee Smith, P.Geo. Chairman and CEO, Canaco, are the Qualified Persons as defined by NI 43-101 for the project discussed above and they have read and approved the contents of this release.
Joanne C. Freeze, P.Geo. President and CEO, Candente
Andrew Lee Smith, P.Geo. Chairman and CEO, Canaco
For further information please contact: Evelyn Cox (604) 689-1957 or toll free 1-877-689-1964 Email: info@candente.com Nick Watters, 604-488-0822 or 1-866-488-0822 Email: investors@canaco.ca
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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy 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.