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Candente Gold $CDG.ca signs Profit Share Agreement for the Cocula Gold Project Western Mexico $CDG.ca $MEX.ca $AGI.ca $DSV.ca

Posted by AGORACOM at 5:01 PM on Thursday, September 10th, 2020
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  • Candente Gold will be entitled to receive 70% of any potential profits that may be derived from mining and processing of ore from the Cocula Gold Project.

VANCOUVER, British Columbia, Sept. 10, 2020 (GLOBE NEWSWIRE) — Candente Gold Corp. (TSXV:CDG) (“Candente Gold” and/or the “Company”) is pleased to announce the signing of a Letter of Intent (“Agreement”) to enter into a profit sharing agreement on the Cocula Gold Project (“Cocula”) in Jalisco State, Mexico whereby Candente Gold will be entitled to receive 70% of any potential profits that may be derived from mining and processing of the deposit.  The addition of Cocula to our asset base represents another critical step in the Company’s growth strategy for Western Mexico.  In addition to untested exploration potential, the Project contains gold mineralization at surface, hosted in quartz veins, stockwork zones and oxidized, mineralized breccias.

Timmins Gold Corp. explored the Cocula property between 2007 and 2011 through a series of comprehensive exploration programs which included geological mapping, geochemical sampling, trenching and 1,974 meters (“m”) of Reverse Circulation (“RC”) drilling.  Significant results included 54m grading 4.97 grams per tonne (“g/t”) gold in a trench across the center of the mineralized area.  An RC hole drilled beneath this trench encountered 37.5m grading 1.3 g/t gold including 7.5m grading 5.8 g/t from surface to a 7.5 m depth.  Near and at-surface, mineralization delineated by drilling and trenching has been traced for at least 800m along strike within a NW-SE trending fault zone.

To the Company’s knowledge, a NI 43-101 compliant mineral resource estimate has not been completed for the Cocula property however Timmins Gold Corp. conducted various in-house resource estimates. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources and therefor the Company is not treating the historical estimates as current mineral resources.  Historical reviews of the potential tonnes and the potential grades quoted below are conceptual in nature.

In December of 2008, consultant (Pedro Teran) contracted by Timmins Gold Corp., estimated an internal resource estimate for the portion of the deposit delineated by their RC drilling and trenching results, including assays from 1,552 surface samples.  The geologist applied a geological model appropriate to the observed mineralization to build a MineSight block model and derived an estimate of 5,796,023 tonnes grading 0.58 g/t gold containing 108,081 ounces (“oz”) gold (the cutoff grade was not defined and CIM categories are not clear). 

The Company has reviewed the above as well all reports and data available and considers there is potential for conceptual exploration targets including a lower grade bulk tonnage, potentially leachable deposit as well as a higher grade/lower tonnage core of the deposit.  Based on all of the existing exploration data and previous resource estimates to date the Company believes the Conceptual Exploration Targets have potential for: 500,000 to 6,000,000 tonnes grading from 0.5 g/t Au to 2.75 g/t Au containing between 50,000 and 110,000 oz Au with secondary credits from silver, lead, zinc and copper.  The above is based on exploration to date by Timmins and other and does not include additional exploration potential.  The potential quantity and grade described above is conceptual in nature, that there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The Agreement provides for the following payments to be made by Candente Gold to the owners (the Lopez family) of the Cocula Gold Project:

1. $10,000 upon signing of the Letter of Intent;
2. $20,000 upon signing of a Definitive Agreement (“DA”) and completion of due diligence within 60 days;
3. $210,000 in staged payments to be made every 6 months over a 36 month period starting 6 months after signing the DA.
4. Upon commencement of production, the owner of the Property will receive a minimum consideration of $25,000 per quarter deductible from mining profits for each quarter.

It will be Candente Gold Corp.’s responsibility to put the Property into production and the Lopez Family will retain 25% of the profits derived from mining, processing and product sales.  The Company has also agreed to pay 5% of profits to Mingeo International as a finder’s fee such that the Company will have the rights to retain 70% of all profits.  Mingeo is a non-arms length party.

In addition, the Company welcomes Mr. Barney Lee to the team overseeing operations in Western Mexico.  Barney has over 30 years of experience working in operations in Mexico with numerous companies including the El Sauzal Mine for Glamis Gold and Goldcorp; as Director for Premium Exploration operations in Nayarit and Jalisco and on the Cocula Property for Timmins Gold.  Most recently Mr. Lee has been working on the Los Cardones Project for the Invecture Group and on the Guadalupe de los Reyes Project for Prime Mining.  He has also worked for Barrick Gold, Kennecott and Excellon Resources.   Additionally, Mr. Lee is skilled in dealing with Mexican land tenure, fiscal and accounting matters.  His role going forward will be to manage operations in Western Mexico.

The Project area is located within the Ameca Mining District of Jalisco State which is home to Agnico Eagle’s El Barqueño Project and Endeavor Silver’s Terronera Project. It is hosted in a Mesozoic age volcano-sedimentary package of the Guerrero Terrane intruded by dioritic and granitic stocks.  Mineralization is hosted in multi-lithic breccia within a NW-SE trending fault zone that has been traced for at least 800m in strike length.  The fault zone coincides with the contact of andesites from the volcano-sedimentary package and a granodioritic stock.  A younger sequence of Tertiary age andesites and basalts locally covers portions of the host units.

About Candente Gold

Candente Gold has launched a comprehensive growth strategy to build a cash flowing business platform and gain access to properties with near surface exploration potential while maintaining El Oro as its flagship asset and an integral part of the overall growth strategy.  The acquisition of the SDA Plant and the El Dorado historic mines signifies an important first step.

The financial benefits from Western Mexico operations and the addition of specialized personnel will translate across platforms to strengthen our efforts to explore and potentially mine.  The Company is currently evaluating properties that are complimentary to the SDA plant and El Dorado Property. 

El Oro is a district scale gold project encompassing a well-known prolific high-grade gold dominant gold-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*)

Modern understanding of epithermal vein systems indicates that several of the El Oro district’s veins hold excellent discovery potential, particularly below and adjacent to the historic workings of the San Rafael Vein, which was mined to an average depth of only 200 metres. 

Joanne C. Freeze, P.Geo., President, CEO and Director and Matthew Melnyk, CPG., Director Operations are Qualified Persons as defined by National Instrument 43-101 for the projects discussed above.  Ms. Freeze and Mr. Melnyk have reviewed and approved the contents of this release.

Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

On behalf of the Board of Candente Gold Corp.
“Joanne Freeze” P.Geo.
President, CEO and Director

For further information please contact:
Joanne Freeze                                                                                   President & CEO   
Tel:+1(604)689-1957                                                                                                                  
[email protected]

Sun River Gold Completes the Purchase of an additional 5% NPI in the Mexico Mine Tailings Project $CDG.ca $MEX.ca $AGI.ca $DSV.ca

Posted by AGORACOM at 8:16 AM on Wednesday, August 19th, 2020
  • Sun River Gold has made the final payment of US$111,000
  • Sun River has the option to acquire 100% of the Tailings Project

VANCOUVER, British Columbia, Aug. 19, 2020 (GLOBE NEWSWIRE) — Candente Gold Corp. (TSXV:CDG) (“Candente Gold” and/or the “Company”) is pleased to advise that Sun River Gold (“Sun River”)  has made the final payment of US$111,000, to increase their ownership in the Mexico Mine Tailings at El Oro Mexico, such that the company’s NPI will be reduced from 10% to 5% after the first US$1,500,000 is received by the Company.

The Mexico Mine Tailings 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. 

Sun River has the option to acquire 100% of the Tailings Project by making staged payments totalling US$300,000 (paid), bring the tailings into commercial production by October 31, 2021, and grant to the Company a 10% NPI, Life of Mine royalty (the “Candente Royalty”) as well as the Municipality’s 8% NPI on production from the properties.  Sun River had the right to reduce the NPI payable to the Company to 5% by paying an additional US$200,000 in payments (now paid). 

Candente Gold’s subsidiary, CCM El Oro Jales, has an agreement with the municipality of El Oro which provides the Company the right to recover all available gold and silver from the tailings deposit and pay to the Municipality of El Oro an 8% Net Profits Interest (“NPI”).  Candente Gold also retains the first US$1.5M from the 8% NPI payable to the Municipality.  Sun River must make all NPI payments to the Municipality. 

Sun River is a private Arizona based corporation managed by an experienced team of mining professionals with a combined 80 years of mining experience in Mexico, including specific experience in the reprocessing of old gold and silver tailings.  Sun River has advised the Company that it has completed a preliminary internal engineering study (“Internal Study”) for the Mexico Mine Tailings Project, and that it intends to continue development of the project with the objective to enter commercial production.  Sun River has recently advised the Company of the following key points in the development of the project:

  • Sun River has signed a letter of intent and made a down payment to purchase 25 hectares of land near the township of Nopalera approximately 5km by road north of the current location of the Mexico Mine Tailings, which is suitable for plant site and residue storage.
  • The project life is estimated by Sun River to be 1 year of engineering and construction and 4 years of tailings material reclaim and processing (at 1,000 tonnes per day) followed by reclamation.
  • Sun River advises that based on flotation test work at a recognized, independent US metallurgical lab, a standard metallurgical flotation process is expected to recover 65% of the gold and 60% of the silver to a marketable concentrate.
  • Sun River intends to market the gold/silver concentrate on the open market.
  • Sun River intends to contract with a local contractor who will use front end loaders and dump trucks to reclaim the tailings material and haul it to the proposed process plant approximately 5 kms away.   

Jim Bradbury, partner in Sun River Gold, Registered Professional Metallurgical Engineer in the State of Arizona, is considered the Qualified Person for the content of the Internal Study.   The metallurgical test work has been conducted by Minerals Technology LLC, a recognized metallurgical testing laboratory located in Tucson, Arizona whose clients include Florence Copper, ASARCO and BASF Mining Solutions. 

*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 available at www.sedar.com.

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*).

Modern understanding of epithermal vein systems indicates that several of the El Oro district’s veins hold excellent discovery potential, particularly below and adjacent to the historic workings of the San Rafael Vein, which was mined to an average depth of only 200 metres. 

Candente Gold is dedicated to being a responsible Community partner participating in Shared Value Initiatives.

Joanne C. Freeze, P.Geo., President, CEO and Director 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Information
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 and Director

For further information please contact:
Joanne FreezePresident & CEO                                                                               
Tel: + 1 (604) 689-1957
[email protected]

Gold’s Mega Rally Faces $2,000 Hurdle, But For How Long? SPONSOR: Candente Gold $CDG.ca $MEX.ca $AGI.ca

Posted by AGORACOM at 11:48 AM on Tuesday, August 4th, 2020

SPONSOR: Candente Gold is creating a growth strategy encompassing its Mexican assets to build a cash flowing business. Recent acquisition of the SDA Plant and the El Dorado Historic Mines is the first step. Their growth strategy is to build a cash flowing business platform and gain access to properties with near surface exploration potential while maintaining El Oro as its flagship asset, and an integral part of the overall growth strategy. El Oro is a district scale gold project encompassing a well-known prolific high-grade gold-silver epithermal vein system in Mexico that has several undeveloped veins and has tremendous exploration potential. Click Here for More Info

LONDON (Reuters) – Gold’s rally has halted just below $2,000 an ounce partly due to fierce technical resistance, but an eventual break above that level is likely, freeing prices for more record highs, technical analysts said.

The gold price XAU= has surged 30% this year to an all-time peak around $1,975 an ounce and is one of 2020’s best-performing assets.

The rally was driven by a belief that gold will hold its value better than other assets as fallout from COVID-19 ripples through the global economy.

Central bank stimulus has pushed inflation-adjusted U.S. bond yields to record lows, making non-yielding gold more attractive, and the dollar has weakened sharply, making bullion cheaper for buyers with other currencies.

The never-before-reached $2,000-an-ounce mark is a major psychological resistance level, with gold’s 49-year trend channel resting just below it at $1,983, said Commerzbank technical analyst Karen Jones.

Only an end-of-month or, better yet, end-of-quarter close above these levels will signal a break from the channel, she said.

“Tighten your stops … unless the top of my range is taken out in a convincing manner … upside from here is marginal.”

Graphic – Gold’s long-term channel: here

Technical analysts seek patterns and signals in price charts which allow them to predict and interpret moves. Traders and automated trading systems also take prompts from technical signals.

Because gold’s rally has been so fast, a downward correction is likely and could be brutal, analysts said, before the market attempts another stab higher.

Early support is coming in around its 20-day moving average, at $1,875, and the bottom of its 4-month uptrend, around $1,830.

Below that is more powerful support at the 20-week moving average, currently at $1,755, said Tom Pelc, an independent technical analyst formerly at Nomura and RBS.

Graphic – Gold technical support: here

Such a fall wouldn’t necessarily doom the longer-term uptrend.

“We continue to see this improving volatility backdrop, so there’s no sign that the long-term trend is changing,” said Richard Adcock, a former UBS and now independent technical analyst.

“The market can carry on higher than people expect,” he said.

Graphic – Gold price volatility: here

If resistance is broken, Fibonacci extensions offer short-term targets. These are based on the idea that a rally will extend in predictable proportions extrapolated from a previous rally. One is at $2,067, said Pelc, another comes in at $2,286.

Graphic – Gold fibonacci extension: here

That could only be the beginning of a multi-year move. Lucas ratios — a tool using a sequence of numbers similar to Fibonacci’s — suggest gold could rise to $3,598.80 an ounce in 4-5 years, said Pelc.

Reporting by Peter Hobson; Editing by Veronica Brown and Emelia Sithole-Matarise

https://www.kitco.com/news/2020-08-04/Gold-s-mega-rally-faces-2-000-hurdle-but-for-how-long.html