Candente Resource is also pleased to announce that its shareholders approved the Plan of Arrangement between Candente Resource and Candente Gold and the Financing at the Annual and Special Meeting of Candente Resource on July 10, 2009. Pursuant to the terms of the Plan of Arrangement Candente Resource will distribute to its shareholders one common share of Candente Gold for every five common shares of Candente Resource held on the day before the first day of trading for Candente Gold (the Ex-Distribution Date). For complete details of the Plan of Arrangement and the Financing see Candente Resource and Candente Gold's News Releases of June 16, 2009 and July 8, 2009.
Exploration and development work by Candente Gold will initially be focused on the El Oro project in Mexico where historic records indicate past gold-silver production of up to 20 million gold equivalent ounces. Candente Gold personnel have reviewed the extensive historic El Oro documentation and substantiated the historic production of 8 million ounces of gold equivalent from two veins alone, which had average grades of 10 to 12 grams per tonne (gpt) gold and 120 to 160 gpt silver over average vein widths of 3 to 10 metres. Exploration work to date indicates the potential for high grade ore shoots containing in excess of 1 million gold equivalent ounces in the San Rafael vein in the first 100 metres below the historic workings. Mining at El Oro took place over an average vertical range of only 250 metres. Several similar vein systems in Mexico are mineralized over 400 metres vertically and some are mineralized over 600 to 900 metres vertically.
In addition, a historic and non-43-101 compliant estimate indicating a mineral resource containing approximately 760,000 ounces of gold and 9,750,000 ounces of silver in 6.89 million tonnes grading 3.44 gpt gold and 44 gpt silver was reported by Luismin (subsidiary of Goldcorp) in 1992. This mineral resource lies within and adjacent to the old workings of the San Rafael vein and according to Luismin documentation represents only 40% of the San Rafael workings. Taking into consideration all of the known San Rafael workings, Luismin estimated a total remaining resource of 17 million tonnes of 3 to 4 gpt gold and 40 to 70 gpt silver (non NI 43-101 compliant) which may contain in excess of 1.7 million ounces of gold and 38 million ounces of silver. Candente Gold cautions that this is a historical estimate and although it is based on extensive historical records including 16,800 samples and 2,400 mine plan maps, a qualified person has not carried out sufficient work to classify the historical estimate as current mineral resources or mineral reserves and as such the historical estimate should not be relied upon.
About Candente Resource Corp and Candente Gold Corp. Candente Resource and Candente Gold's Management Teams and Board of Directors are senior mining industry executives with a track record in the discovery and development of copper, gold and silver deposits. Candente subscribes to principles whereby exploration and development activities are consistent with best practice and beneficial to the local communities.
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.
For further information please contact:
Joanne C. Freeze, PGeo.
President & CEO
Candente Gold Corp.
Sean Waller, P. Eng.
Candente Resource Corp.
Phone: + 1 (604) 689-1957