Candente Gold Corp. (TSX: T.CDG, Stock Forum) said that its Mexican subsidiary, Minera CCM El Oro Jales S.A. de CV, has 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.
The tailings deposit lies within the town site of El Oro, is immediately adjacent to existing road access and has full power and water services. The tailings cover an area of approximately 5.6 hectares, that once reclaimed will be available for the town’s future development.
According to the Candente Gold press release, one of the tailings deposits, from the famous Mexico mine on the San Rafael vein, has an historic, non-43-101 compliant, estimate of over one million tons grading 2.80 grams per tonne gold and 75.0 grams per tonne silver.
Terms of the agreement with the municipality of El Oro and the State of Mexico, involve two stages. The first stage allows the company a one year period to carry out the necessary test work to ascertain recoveries and potential economic viability of reprocessing the tailings for contributions of US$25,000 upon signing the agreement and monthly contributions of US$3,000 starting 30 days thereafter.
If Candente Gold decides to enter into the reprocessing phase, then an 8% net profits interest will be paid to the municipality during the period of operation. If during any months of reprocessing, there is no net profits interest due then a monthly contribution of US$3,000 will be made.
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.
Candente flagship asset is El Oro, a district scale gold project encompassing a gold dominant epithermal vein system in Mexico.
On Thursday, Candente was trading at $0.07 a share. The company had a market cap of $4.4 million, based on 62.2 million shares outstanding.
