El Oro Project
The El Oro mines operated almost continuously over a period of approximately 40 years from the late 1890's until 1937. Thereafter mining operations continued at a significantly reduced rate by an employee cooperative until 1957. Based on historic records, estimates of past gold-silver production range 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 the San Rafael and Verde veins alone. Historic mining operations from the Spanish era have taken place intermittently on a number of additional parallel vein structures including the Borda and Corona veins, however gold-silver production on these veins was only poorly documented and cannot be verified.
A historic and non-43-101 compliant estimate indicating that 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 grams per tonne (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 60 gpt silver (non NI 43-101 compliant) which may contain in excess of 1.7 million ounces of gold equivalent. Candente Gold cautions that this is an 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 done 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.
Drilling by Minera CCM S.A., now held by Candente Gold Corp., in 2007 on the four main veins at El Oro intersected mineralized vein structures below the historical workings demonstrating that the veins and precious metal mineralization continues to depth. Recent petrographic work including fluid inclusion analyses on vein material collected from 2007 drill intersections within three of the four main veins indicates the sample positions are high in an epithermal gold-silver system (above the system's boiling point) which indicates excellent potential for additional gold-silver ore shoots below past production levels. Previous work by Placer Dome on the El Oro property indicated the potential for high grade ore shoots containing in excess of 1 million gold equivalent ounces in the San Rafael vein below the historic workings, and formed the basis for Placer Dome's previous interest in the property (2003-2004). 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.
Exploration and Development Program
An exploration and development program is planned, pending approval of the proposed Plan of Arrangement ("the Arrangement") and a financing in Candente Gold Corp. (see Candente News Release #261 of June 16, 2009).
Exploration efforts at El Oro will focus on three objectives:
Identify Additional Resources in Known Veins
Rehabilitate access to and drive new development to the underground workings on the main veins, establish underground drill stations and conduct drilling targeted at identifying additional mineralized zones and resources at greater depth and along strike. Excellent potential exists for ore shoots to continue at depth for these veins.
Assess Existing Historic Resources for Production Potential
Utilize the rehabilitated underground access to the San Rafael Vein to evaluate existing historical resources identified by Luismin for production potential and potential upgrade of historic resource to NI43-101 standards;
Discovery of New Veins
Exploration including mapping, geochemical sampling and geophysical surveys have identified several key targets with excellent potential for discovery of new vein systems especially in a large area previously unexplored and unexploited.
Candente Gold also plans to commence exploration work to further delineate drill targets initially on three of its Peru precious metal projects. Previous work by Candente including prospecting, surface mapping and geophysics identified anomalous zones of gold and/or silver mineralization and the potential for precious metals deposits of significant size on each of these properties.
About Candente Gold Corp.
Candente Gold's Management Team 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, which ensure that 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.
CAUTIONARY NOTE TO U.S. INVESTORS
We advise U.S. investors that this news release uses terms which are not recognized by the United States Securities and Exchange Commission ("SEC"), including "mineral resources", "measured resources", "indicated resources" and "inferred resources". The estimation of measured and indicated resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that mineral resources in these categories will be converted to reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically mineable, or will be upgraded into measured or indicated mineral resources. U.S. investors are cautioned not to assume that mineral resources in any of these categories will be converted into reserves.
For further information please contact:
Joanne C. Freeze, PGeo.
President & CEO
Sean Waller, P. Eng.
Phone: + 1 (604) 689-1957