VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 04/15/14 — Candente Gold Corp. (TSX: CDG) (“Candente Gold” or “the Company”) is pleased to report that JDS Energy and Mining Inc. (“JDS”) has conducted a high level conceptual study for a Tailings Recovery Operation (“TRO”) near to Candente Gold’s El Oro site in Mexico. The Company’s strategy is to look for opportunities to develop cash flow in the near term with relatively low capital costs. Study results indicate that the Mexican mine tailings from El Oro have the potential to meet this criteria and justify further study on the economic potential of a TRO.
In keeping with both environmental and social responsibility policies of Candente Gold, the TRO would see the Company provide the El Oro municipality with a remediation program, which would include relocation of the tailings from the current site, within the town, to a nearby greenfields process facility in an unpopulated and under-utilized area. Once treated the tailings would be contained by an engineered structure designed to international standards. This would both remediate current potential environmental risks and rehabilitate the current land for new municipal use.
As part of the conceptual study JDS evaluated a variety of metallurgical processes, which have been historically tested by various parties for gold and silver extraction from the tailings. Considering only industry standard metallurgical processes typically utilized by other operations, the historical metallurgical test work on El Oro tailings indicates that minimum overall recoveries of 50% may be expected, however test work also indicates potential for higher recoveries of 60% to 70%.
Based on current knowledge, the treatment process that JDS recommends would incorporate a single stage polishing grind of the tailings to increase fresh particle surface area prior to extraction of gold and silver in a conventional agitated leach circuit. Gold and silver would be recovered in a Merrill-Crowe plant followed by on site refining to produce Dore bars.
Given the positive results from this conceptual study by JDS, the Company is proceeding to the next stage of project development with plans for auger and trench sampling followed by drilling of the tailings deposit. The objective of the initial auger/trench sampling program will be verification of historical gold and silver grades, which may then be used to develop an Inferred Resource for the tailings. The subsequent drilling program will provide additional verification of the grade continuity at depth and provide additional samples for metallurgical test work. The metallurgical test work program will determine optimal recoveries; confirm the process details and reagent consumption levels.
Results from the drilling combined with the next stage of study by JDS is expected to lead to an increased level of confidence in the modeling of the economic potential of the El Oro tailings deposit.
Environmental Impact Assessment (“EIA”) studies and the drill permitting process have already been initiated and are underway.
Background on the Tailings
In 2013, Candente Gold acquired the right to process historic tailings left from pre-1930s milling of ores from the Mexico Mine in the El Oro District in Mexico State, Mexico. The tailings have had extensive historic assessments including drill testing and metallurgical test work demonstrating that it is a valid exploration target with the potential for 800,000 to 839,000 tonnes grading from 2.80 to 2.95 grams per tonne gold (potential for 79,000 to 90,000 oz of gold) and from 75.00 to 89.00 grams per tonne silver (potential for 2,000,000 to 2,600,000 oz of silver). The tailings deposit lies within the town of El Oro and covers an area of approximately 5.6 hectares that once reclaimed, will be available for the town’s future development. The tailings are adjacent to existing road access, power and water services. 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.
The above potential tonnage and grade estimation of the Mexico mine tailings exploration target is historical in nature and Candente Gold needs to conduct further work to verify these historic results. This estimation is being used for conceptual purposes only and should not be relied upon as insufficient recent sampling has been carried out to define an Inferred Mineral Resource using Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) resource categories (CIM, Nov 2010). The homogenous nature of tailings, at least in a lateral sense, suggests that a sample population of the tailings could be systematically verified by a grid based auger and trench sampling program such that grade continuity could be predicted with confidence and contained metals may be better verified with a reasonable level of reliability. This work could be sufficient to bring the historical estimate into a current Inferred Mineral Resource category. Further verification with a drilling program using appropriate QA/QC procedures consistent with CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines reference in NI 43-101, including a reliable determination of the specific gravity and further metallurgical test work is required to identify with more certainty, the quantity and grade of the reported estimate to meet an Indicated Mineral Resource category under CIM Definition Standards. A qualified person has not yet done sufficient work to classify the historical estimate as a current Inferred Mineral Resource, and the Company is not treating the historical estimate as current mineral resources.
For more details, you may view our El Oro Tailings Update Presentation at: http://www.candentegold.com/s/presentations.asp
As per our News Release dated January 23, 2014 (NR 032) Candente Gold has applied to delist its shares from the Lima Stock Exchange (“BVL”). The BVL has advised that the delisting is expected to be completed imminently.
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. The project covers 20 veins with past production and more than 57 veins in total, from which approximately 6.4 million ounces of gold and 74 million ounces of silver were reported to have been produced from just two of these veins.
Modern understanding of epithermal vein systems strongly indicates that several of the El Oro district’s veins hold potential for discovery of significant gold and silver mineralization, particularly below the historic workings of the San Rafael Vein, which was mined to an average depth of only 200 metres and produced 4 million ounces gold and 44 million ounces of silver.
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.
Joanne C. Freeze, P.Geo., President and CEO of Candente Gold, Sean I. Waller, P.Eng., Vice President of Candente Gold and Nadia Caira, P.Geo. of World Metals Inc. (formerly Argonaut Gold Odyssey Inc.) are the Qualified Persons as defined by NI 43-101 for the project discussed above and have read and approved the contents 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.
On behalf of the Board of Candente Gold Corp.
Joanne Freeze, P.Geo., President & CEO