|April 06, 2010|
Candente Gold Begins Work at El Oro
|Candente Gold Begins Work at El Oro |
Vancouver, British Columbia, Tuesday April 6th, 2010. Candente Gold Corp. (CDG-TSX) ("Candente Gold") is pleased to announce that exploration and underground work has started on the El Oro gold project, Mexico. Surface and underground diamond drilling are planned to commence in April as soon as drill sites are ready.
Rehabilitation work to access the San Rafael vein in the historic El Oro Mine is well underway. An investigation of old workings since January has determined that the San Juan adit is in far better condition than expected and will provide excellent access for part of the underground drilling program.
The 2010 work program has been budgeted to include approximately 9,000 metres of diamond drilling underground and 6,000 metres on surface, 500 metres of rehabilitation of old workings and 1,000 metres of new development.
Underground drilling will target the vertical extensions of known bonanza grade gold and silver ore shoots of the San Rafael vein. The San Rafael vein historically produced over 4 million ounces of gold and 44 million ounces of silver from only the uppermost 150 to 250 metre levels, with mine grades averaging 10 to 12 g/t gold and 120 to 160 g/t silver, and as high as 50 g/t gold and 500 g/t silver.
"We have very strong geological evidence that the San Rafael and other vein systems at El Oro may be analogous to other epithermal vein systems found in the Fresnillo, Guanajuato and Pinos Altos mines in Mexico, where gold and silver occurs over 600 to 1200 metres vertically," commented Dr. Peter Megaw, Ph.D. and Darin Wagner, P.Geo., Candente Gold directors.
Surface drilling will start by testing the Andrea target two kilometres east of the San Rafael vein. This showing comprises low sulphidation epithermal style quartz veining and brecciation coinciding with geochemical anomalies in soils and an NSAMT (Natural Source Audio Magnetic Telluric) structural target.
The exploration program at El Oro is being overseen by Mr. Mark J Pryor, Pr.Sci.Nat., who has recently been appointed Vice President Exploration for Candente Gold. Mr. Pryor has 25 years of experience in international gold exploration with Anglo American in Southern Africa; Monarch Resources, Viceroy and Minefinders in Mexico; and Placer Dome in Mexico, Africa and Eurasia. Mr. Pryor has been exploring for gold in Mexico since 1995, including guiding the discoveries of the San Sebastian, La Pitarrilla and San Agustin gold/silver deposits while Exploration Manager for Monarch Resources.
In addition, Mr. Pryor oversaw the 2002 to 2004 El Oro district wide exploration program for Placer Dome, which led to the ore deposit modelling and projection of potential down dip extensions to the bonanza grade gold and silver ore shoots below the old workings within the El Oro and Esperanza Mine leases. Candente Gold is initially targeting these potential extensions.
"We are very pleased to begin exploration at El Oro, particularly under the direction of someone who understands the project so well, and believes in its potential so fervently," said Joanne Freeze, P.Geo., Candente Gold's President & CEO, "With drilling expected to be underway soon on both the underground and surface targets, we are very excited to see how much gold and silver there is still to be found in San Rafael, and what new discoveries are yet to be made on the El Oro gold project."
Michael A. Petrina, P.Eng. has been appointed Technical Advisor to oversee all underground development activities. Mr. Petrina brings to Candente Gold over 25 years of experience in mine operations and engineering in both underground and open pit settings. Mr. Petrina has worked extensively in Latin America previously including at Breakwater Resources' El Mochito Mine, Pan American Silver's Huaron and Quiruvilca mines and Genco Resources' La Guitarra Mine.
About Candente Gold
Through a plan of arrangement completed in December 2009, the Candente Group separated its gold and silver assets from its copper assets, assembled an exploration and management team, and created Candente Gold Corp. Candente Gold began trading on the TSX on January 4, 2010.
Candente Gold's flagship asset is the El Oro gold project, a district scale project encompassing one of the largest and most prolific high-grade epithermal gold-silver vein systems in Mexico. The El Oro District includes over 20 known veins, but the historic district production of 6.4 million ounces of gold and 74 million ounces of silver came from just two of these.
Candente Gold will also concurrently begin a thorough, modern, systematic program of exploration of other known veins, and potential additional veins in the El Oro gold project area as well as on their Peruvian gold and silver properties in 2010.
Joanne C. Freeze, P.Geo., President and CEO, Mark J. Pryor, Pr.Sci.Nat. VP Exploration, and Michael A. Petrina, P.Eng, Technical Advisor are the non-independent Qualified Persons as defined by National Instrument 43-101 for the projects discussed above and they have reviewed 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.
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:
VP Corporate Development
local: + 1 (604) 689-1957 ext 2
toll free: 1 (877) 689-1964 ext 2
mobile: +1 (604) 614-2999
Manager, Investor Relations
local: + 1 (604) 689-1957 ext 3
toll free: 1 (877) 689-1964 ext 3 mobile: +1 (604) 306-8477