|June 22, 2010|
Candente Gold Begins Underground Drilling at El Oro
|Candente Gold Begins Underground Drilling at El Oro|
Vancouver, British Columbia, June 22nd, 2010. Candente Gold Corp. (TSX:CDG) ("Candente Gold") is pleased to announce that the San Juan tunnel rehabilitation is complete and drilling has commenced from within the underground workings of the San Rafael vein on the El Oro Gold Project, Mexico. A series of holes are currently underway to test the first targets in a potential remnant resource, and projected depth extensions to known high-grade gold-silver zones.
Recent review and modelling of extensive historical production records, underground samples, and drill intersections indicate that the first 100m below the San Rafael mine workings, including these projected extensions to known high-grade zones, have the potential for 3-4 million tonnes averaging 10-12 g/t gold and 120-160 g/t silver, which would contain well in excess of one million ounces of gold.*
The San Rafael vein produced over 4 million ounces of gold and 44 million ounces of silver from 11.9 million tonnes of ore mined between 1896 and 1927, over an average of only 200 metres vertically. Mine grades averaged 10 to 12 g/t gold and 120 to 160 g/t silver and reached bonanza grades as high as 50 g/t gold and 600 g/t silver in the lowest mine levels.
Candente Gold believes that the San Rafael vein system is analogous to other epithermal vein systems mined in Mexico such as the Fresnillo, Guanajuato, and Pinos Altos mines where gold and silver occurs over 600 to 1200 metres vertically.
Figure 1 - Exploration Potential of the San Rafael Vein (175kb pdf):
In addition to the San Rafael vein, Candente Gold has the rights to 20 veins with past production and more than 50 veins in total discovered to date within the El Oro gold district. Modern understanding of epithermal vein systems strongly indicates that many of these veins hold significant discovery potential.
Initial drilling will be carried out from drill stations located in the footwall only 10 metres from the San Rafael vein. Once this initial drilling is complete, further underground work will take place to develop drill stations in the hanging wall of the vein. The 500 metres of rehabilitation work from the portal of the San Juan tunnel to the first drill station in the San Rafael vein footwall was minimal as underground conditions have proven to be excellent.
A total of 9,000 metres are budgeted for underground drilling in 2010, with results from this initial drilling expected early in Q3 2010.
* The potential quantity and grade are conceptual in nature, as there has been insufficient exploration to define a mineral resource, and it is unknown if further exploration will result in the target being delineated as a mineral resource. Ref. NI-43-101 Section 2.3 (2).
Surface Exploration Continues
Drilling continues from surface on the Andrea vein. Two holes have now been completed, testing the vein to depths of 200 metres and 350 metres. Several zones of alteration and mineralization have been intersected that are typical of high levels of low sulphidation epithermal vein systems. The third hole, now underway, is targeted to intersect the Andrea vein where it crosscuts the deeper sedimentary package of host rocks at an anticipated depth of 400m vertically below surface.
The veins of the El Oro gold district typically carry their highest gold and silver grades when they are hosted in these sedimentary packages. A total of 6,000 metres are budgeted for surface drilling in 2010.
Michael Minnes Appointed Country Manager, Mexico
Candente Gold is also pleased to announce the appointment of Mr. Michael Minnes as Country Manager for Mexico. Mr. Minnes holds an MBA from the Richard Ivey School of Business and brings over 15 years of Latin American management experience to Candente Gold.
Mr. Minnes supervised the development and execution of communications and corporate social responsibility portfolios, marketing strategies, and government affairs for Sherritt International, a diversified natural resource company, during a period of significant expansion which saw their capital assets grow 130% to US$6.4 billion. Prior to working with Sherritt, Mr. Minnes held the position of Manager of Corporate Communications with Barrick Gold Corporation.
About Candente Gold
Candente Gold's flagship asset is El Oro, a district scale gold project encompassing one of the largest and most prolific high grade gold dominant epithermal vein systems in Mexico. The El Oro district includes over 50 known veins, but the bulk of the historic district production of 6.4 million ounces of gold and 74 million ounces of silver were produced from an average of only 200 metres vertically in just two of these veins.
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.
Candente Gold will begin a thorough, modern, systematic program of exploration of the known and potential additional veins in the El Oro gold project, and their Peruvian gold and silver projects in 2010.
Joanne C. Freeze, P.Geo., President and CEO and Mark M. Pryor, Pr.Sci.Nat., are the 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
mobile: +1 (604) 614-2999
local: + 1 (604) 689-1957 ext 2
toll free: 1 (877) 689-1964 ext 2
Manager, Investor Relations
mobile: +1 (604) 306-8477
local: + 1 (604) 689-1957 ext 3
toll free: 1 (877) 689-1964 ext 3