| ||Vancouver, British Columbia, June 2nd, 2016. Candente Gold Corp. (TSXV:CDG) ("Candente Gold" and/or the "Company") announces that "as a result of a review by the British Columbia Securities Commission, we are issuing the following news release to clarify our disclosure."|
The British Columbia Securities Commission ("BCSC ") advised the Company in a comment letter dated May 25, 2016 that some of our disclosure regarding exploration targets and historical estimates on the El Oro Property was not compliant with NI 43-101. The company clarifies these items as follows, and is in the process of preparing compliant target estimates for re-statement.
- An illustration titled "San Rafael Vein Exploration Potential", which appeared in our corporate presentations as well as our Fact Sheet disclosing exploration targets, which are not 43-101 compliant. This illustration disclosed "exploration potential" in Zones B, C, and D, however these exploration targets are not compliant because: i) quantities and grades were not given in ranges, ii) it lacked discussion about the basis for the Zone B, C, and D estimates; iii) it lacked details of local sampling data to support the estimates, and because grades exceeded stated average grade of past production. The Company is estimating ranges of grade and tonnage of these targets, based on the available data and information, and will restate them when final estimates are completed.
- The Company's website and some investor materials disclosed two Historical Conceptual Exploration Targets as a Historic Mineral Resource and also as "Remnant Resources". NI 43-101 restricts the re-designation of these targets using the term "resource" before delivery of an initial current resource estimate, and the Company retracts the designations historical resource and remnant resource. The Historical Conceptual Exploration Targets referred to were the result of work by Luismin in 1992 (now subsidiary of Goldcorp Inc.) who estimated that a portion of the San Rafael vein hosted a potential in-situ estimate. The Fact Sheet also included cautionary language of s.2.4(g) of NI 43- 101, suitable for a "historical estimate" but not for an "exploration target"; this was potentially misleading because it appears to treat the exploration potential as a resource estimate. They were described as Historical Conceptual Exploration Targets in our 43-101 reports filed in 2013 and 2014 and will be labeled as such in all future disclosures. The exploration target identified by Luismin in 1992 is within the El Oro Mining & Railway/Esperanza portion of the San Rafael vein which they estimated to host a potential (in-situ) of 6.00 to 6.89 million tonnes grading from 3.00 to 3.44 grams per tonne gold and from 40.00 to 44.00 grams per tonne silver containing approximately 0.58 -- 0.76 M ounces of gold and 7.7 to 9.7 M ounces of silver. This in-situ conceptual estimate of the potential tonnes and grade is contained in 40% of known historic workings within remaining pillars, areas not mined and stope-fill and back-fill material.
The Conceptual historical reviews of in-situ and stope-fill material estimated for the San Rafael vein was based on an assessment of historic El Oro Mining & Railway mine records including: a review of 914 two-metre sample control level plans with gold reported in Au$/Ton and silver reported in Ag oz/Ton; summary cross sections; and limited production documentation. The block model used two-metre blocks with an area of influence of two metres. Gold and silver grades from remnant mineralization were also confirmed by subsequent drilling in 1993 by Hillsborough in a joint venture with Luismin when they re-evaluated the historic estimate of tonnes and grade described above. Eight diamond drill holes (SR-93-1 to SR-93-08) over a 1.0 km strike length were completed by Hillsborough.
A NI 43-101 compliant mineral resource estimate has not been completed for the San Rafael Vein. The potential quantity and grade estimated on the San Rafael Vein Target is conceptual in nature, insufficient drilling has been conducted to define the target under an inferred mineral resource using CIM Definition Standards for Mineral Resources and Reserves (2014) for resource categories with adequate geological confidence and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
- A Map illustration titled "El Oro District, Mexico" in both the Corporate Presentations and the Maps section of the website disclosed a "Luismin Estimate" for the Borda and Corona Veins on the El Oro Property. This was actually Luismin's estimate of past production and not current resources and has been deleted from presentations and the website and will be modified for accuracy and proper disclosure.
About Candente Gold
Candente Gold's flagship asset is El Oro, a district scale gold project encompassing a well known prolific high grade gold dominant silver 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 (Ref. Mexico Geological Service Bulletin No. 37, Mining of the El Oro and Tlapujahua Districts. 1920, T. Flores)
Candente Gold holds the Mexico Mine Tailings which contain an Inferred Resource* of 1,267,400 Tonnes grading 2.94 Au g/t, 75.12 Ag g/t containing 119,900 ounces of gold and 3,061,200 ounces of silver.
*Note: Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the accuracy of the estimate. For more information see "National Instrument 43-101 Technical Report on the Inferred Mineral Resource Estimate of the Mexico Mine Tailings" prepared by Nadia Caira, P.Geo. and Allan Reeves, P.Geo., dated August 25, 2014 with an effective date of July 8, 2014 (the "Technical Report") available at www.sedar.com.
Joanne C. Freeze, P.Geo., CEO is a Qualified Person as defined by National Instrument 43-101 for the project discussed above. Ms. Freeze has reviewed and approved the contents of this release.
This news release may contain forward-looking information (as such term is defined under Canadian securities laws) including but not limited to information regarding the processing of tailings to generate short-term cash flow, the potential for discovery in the El Oro district and other statements that are not historical facts. While such forward-looking information is expressed by Candente Gold in good faith and believed by Candente Gold to have a reasonable basis, they address future events and conditions and are therefore subject to inherent risks and uncertainties including those set out in Candente Gold's MD&A. Factors that cause the actual results to differ materially from those in forward-looking information include, without limitation, gold prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, potential environmental issues, availability of capital and financing and general economic, market or business conditions. Candente Gold expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
On behalf of the Board of Candente Gold Corp.
"Joanne Freeze" P.Geo.
President & CEO
For further information please contact:
Manager, Investor Relations
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