Vancouver, British Columbia, September 26, 2013. Candente Gold Corp. (TSX:CDG, BVL:CDG, US:CGDXF) (“Candente Gold” or “the Company”) is pleased to report on historic metallurgical test work results from the Mexico Mine tailings which indicate potential for encouraging precious metal recoveries. A summary of the detailed metallurgical test work results can be found in a NI 43-101 F1 amended technical report on the El Oro property in Mexico filed on September 25th, 2013 (www.sedar.com).
In June, 2013 (Candente Gold NR025) Candente Gold Corp’s Mexican subsidiary, Minera CCM El Oro Jales S.A. de CV, signed an agreement for the access and processing rights to historic gold and silver tailings deposits in the El Oro District of Mexico State, central Mexico. One of the tailings deposits, which is from the famous Mexico Mine on the San Rafael vein, has a historic, non-43-101 compliant, estimate of approximately 1,000,000 tons grading 2.80 g/t gold and 75.00 g/t silver for a potential of more than 90,000 ounces (“oz”) of gold and 2,500,000 oz of silver. This tailings deposit lies within the town site of El Oro and is immediately adjacent to existing road access, power and water services. The tailings cover an area of approximately 5.6 hectares, that once reclaimed would be available for the town’s future development.
In a recently uncovered 1989 report by the Universidad Autonoma de San Luis Potosi, Instituto de Metalurgia (in Mexico) a variety of metallurgical concentration processes were evaluated for gold and silver extraction from the tailings. This test program was similar to previous metallurgical test work by several other companies which resulted in an understanding of what can be expected for gold and silver recoveries utilizing different treatment processes.
Based on all of the information now available, the favoured process for the tailings material is a polishing grind, agitated cyanidation for extraction and recovery of gold and silver followed by refining to produce dore bars. The historical test work indicates that recoveries could be in the range of 60% to 70% especially for finer materials of less than 325 mesh in size. A summary of historical metallurgical test work performed on samples of the Mexico Mine tailings is presented below.
| Summary of Mexico Mine Tailing Test Work History from 1931 to 1989 | |||||
| Year | Testing Institution | Process | Regrind | Recovery | |
| % Au | % Ag | ||||
| 1951 | Mining Development Commission | Flotation | 96% -325 mesh | 70.0 | 71.0 |
| Cyanidation after Calcination | No | 70.0 | 20.0 | ||
| 1959 | Mining Cooperative | Cyanidation after Calcination | No | 75.0 | 22.0 |
| Cyanidation after Calcination | -200 mesh | 81.0 | 30.0 | ||
| Flotation | 80 % to -325 mesh | 27.0 | 48.0 | ||
| 93 % to -325 mesh | 49.0 | 41.0 | |||
| 1982 | Cia Minera Real Asientos y Anexas For Minera Mexico Michoacán | Heap Leaching | No | 20.0 | 41.33 |
| Yes | 20.0 | 53.33 | |||
| Heap Leaching after Roasting | No | 40.0 – 50.0 | 58.7 – 70.7 | ||
| 1989 | Institute of Metallurgy of SLP | Flotation | No | 13.5 | 13.6 |
| Direct Cyanidation | No | 50 | 47.8 | ||
| Direct Cyanidation | -325 mesh | 75 | 82.4 | ||
| Cyanidation after Roasting | No | 75 | 55.4 | ||
Candente Gold Corp.’s on-going due diligence program on the Mexico Mine Tailings will include additional metallurgical verification test work, detailed mineralogical evaluation to gain a better understanding of the mineralogy, followed by process development. This assessment will lead to the most effective economic reclamation and reprocessing method for the tailings to recover the gold and silver.
In keeping with both environmental and social responsibility policies of Candente Gold Corp, the agreement will see the Company provide the municipality with a reclamation program, which will include relocation of the tailings after treatment for gold and silver recovery. This would both remediate current potential environmental risks and rehabilitate the land for new municipal use. Three other tailings deposits also exist within the Municipality of El Oro and are included in the Agreement but require further testing and evaluations prior to making a decision to reprocess and reclaim.
For more details, you may view our El Oro Tailings Update Presentation at: http://www.candentegold.com/s/presentations.asp
About Candente Gold
Candente Gold’s flagship asset is El Oro, a district scale gold project encompassing the largest and most prolific high grade gold dominant epithermal vein system in Mexico.
Candente Gold also holds an extensive portfolio of 100% owned, early to mid-stage; high and low sulphidation epithermal gold projects in Peru. Many of these projects have significant exploration completed and targets ready to be drill tested.
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 that 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.
On behalf of the Board of Candente Gold Corp.
“Joanne Freeze” P.Geo.
President & CEO
For further information please contact:
Walter Spagnuolo
Manager, Investor Relations
mobile: +1 (604) 306-8477
local: + 1 (604) 689-1957 ext 3
toll free: 1 (877) 689-1964 ext 3
[email protected]
Nataly Reategui
Investor Relations, Peru
Tel.: (511) 715-2001 ext 107
Fax: (511) 717-1233
[email protected]
