Candente Gold Corp.
TSX : CDG
BVLAC : CDG

Candente Gold Corp.

September 14, 2010 11:29 ET

Candente Gold Confirms Gold and Silver Grades in Remnant Resource at El Oro

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 14, 2010) - Candente Gold Corp. (TSX:CDG)(BVLAC:CDG) ("Candente Gold") is pleased to announce that gold and silver grades from underground sampling and drilling have confirmed the potential for a remnant resource in the historic workings of the San Rafael vein, El Oro District, Mexico.

Both underground drilling and sampling have demonstrated high grades of gold and silver in vein remnants. Two samples collected 55 m apart vertically have returned grades of 14.92 grams per tonne ('g/t') gold and 117.00 g/t silver over 2.1m, and 14.64 g/t gold and 54.50 g/t silver over 2.5m. Mineralized backfill material sampled to date shows an average of 4.72 g/t gold and 53.49 g/t silver.

These results support the historic gold and silver grades in a 1992 resource estimate by Luismin SA de CV (now a subsidiary of Goldcorp). This resource contained 762,000 ounces of gold and 9,750,000 ounces of silver at an average grade of 3.44 g/t gold and 44.00 g/t silver in 6,888,620 tonnes within remnant hanging and footwall vein material as well as pillars and backfill. This mineralized material was left behind as a result of a historic mine cut-off grade of ~8 g/t gold. Luismin's resource is historic in nature and non-43-101 compliant.

Although evaluating this remnant resource is a secondary priority, Candente Gold expects to encounter significant amounts of this material in its underground rehabilitation and drilling program and will sample, assay and stockpile these materials throughout the San Rafael vein underground program as potential starter feed for a future mill.

This resource estimate pertains only to the El Oro Mining & Railway Company mine, in the southern end of the San Rafael vein, which encompassed approximately 40% of the 2.4 km mined length of the vein. A significant additional remnant resource may exist in the northern 60% of the vein mined by the Mexico and Esperanza companies, but records no longer exist to allow for a resource estimate.

Projected high grade mineralization below the historic mine workings in extensions to known high-grade gold-silver zones averaging 10 to 12 g/t gold, 120 to 160 g/t silver, and 10 metres wide remain the primary exploration targets on the San Rafael vein. These targets will be tested as soon as the rehabilitation of the San Juan tunnel is extended sufficiently to allow further drilling from underground.

Candente Gold is also investigating the best method to access and test the largest and highest grade of these targets, which lies at the boundary between the historic Mexico and Esperanza mines in the northern end of the San Rafael vein. Historic underground sampling returned grades of up to 50 g/t gold immediately above this target.

Rehabilitation & Sampling of Underground Workings in the San Rafael Vein

To date, 520 metres of workings in the southern portion of the San Rafael vein system have been rehabilitated to provide access for underground drill stations. During this rehabilitation, chip channel sampling of altered and veined sidewall material and areas of backfill within the San Juan adits and its crosscuts totalled over 160 samples. A total of 17 samples of mineralized backfill material averaged 4.72 g/t gold and 53.49 g/t silver. Continued sampling and assaying of the material removed and encountered during the rehabilitation of the underground workings will continue throughout the San Rafael vein underground program.

Sampling of a 9m long portion of the San Rafael vein left in place in the Consuelo adit returned grades averaging 7.16 g/t gold and 33.00 g/t silver from 4 channel samples over 2.5m each, including 14.64 g/t gold and 54.50 g/t silver from one of these 2.5m channel samples.

Underground Drilling in the San Rafael Vein

Since June 2010 a series of 11 holes totalling 980 metres have been drilled from a station established in the footwall of the San Rafael vein, approximately 500 metres from the portal. These holes were drilled to test the geology and provide an initial test of backfill and vein remnants comprising the potential remnant resource mentioned above in the historic workings at the southern end of the San Rafael vein system.

Selected assays from these 11 holes are reported below in Table 2, and include a 2.1m intersection grading 14.92 g/t gold and 117.00 g/t silver intersected in borehole SJUG10-002 of in-situ footwall quartz vein and breccia material of the San Rafael vein system. Borehole SJUG10-004 returned values of 3.14 g/t gold and 50.50 g/t silver over 6.0m from backfill material intersected in the drilling.

The combined drilling and backfill assays confirm the presence of significant quantities of potentially mineable grade backfill within the San Rafael vein workings. The high grade intercepts of remnant San Rafael vein material confirms the historic mine cut-off grades and indicates that significant amounts of what would today be considered high-grade material may remain in-situ. This further underscores Candente Gold's belief that a significant remnant resource is contained within the historic mine workings of the San Rafael vein system.

The San Juan tunnel rehabilitation is continuing to the southwest to establish a series of drill stations in the hanging wall of the San Rafael vein. Drilling will then be carried out to test projected high grade mineralization below the historic mine workings in extensions to known high-grade gold-silver zones. This drilling will commence as soon as the rehabilitation work is complete.

Table 1 – Selected Underground Grab & Channel Sample Assays

Location Sample Type Width (m) Au (g/t) Ag (g/t)
72 Level backfill grab 17 samples 4.72 53.49
Consuelo sub-level channel 2.5 x 4 7.16 33.00
  including channel 2.5 14.64 54.50

Table 2 – Selected Underground Drilling Assays

Borehole From (m) To (m) Width (m) Au (g/t) Ag (g/t)
SJUG10-002 38.4 40.5 2.1 14.92 117.00
SJUG10-004 25.00 55.50 30.5 1.52 32.94
  including 43.00 49.00 6.0 3.14 50.50
SJUG10-006 69.0 84.5 15.5 1.33 55.18
  including 73.5 80.0 6.5 2.82 96.08
SJUG10-007 29.0 30.00 1.0 3.67 14.50
SJUG10-010 41.0 51.0 10.0 0.50 27.30

Surface Exploration Drilling

Several geological, geochemical, and geophysical targets with the potential to represent buried and previously unknown vein systems similar to San Rafael have been identified in the Oriente Zone, which lies 1,000 to 4,000m east of the historic mining centres. These targets include linear features delineated by NSAMT geophysics coinciding with geochemical anomalies in soils and rocks and some alteration zones. These targets are being systematically drilled as a key part of the exploration program at El Oro.

The first target to be tested was the Andrea vein located 3,000m northeast of the San Rafael vein system. Andrea is the only outcropping vein and breccia target with low sulphidation epithermal style alteration features found in this area.

Drill testing of the Andrea vein is now complete. Four holes were started, of which three reached their target depth, and one was lost short of its target depth due to drilling difficulties. The Andrea vein was intersected by the three completed holes at vertical depths of approximately 150, 250, and 500 metres. The third hole was successful in intersecting the vein at a depth where it was hosted by the favourable phyllite wall rock however anomalous levels of gold or silver have not been detected.

The surface drill has now begun drilling the Veta Oriente target, which is located 1,500 metres east of the San Rafael vein. Veta Oriente is a coincident geochemical and geophysical target which may represent a buried low sulphidation epithermal vein system.

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 20 veins with past production and more than 50 veins in total, with 6.4 million ounces of gold and 74 million ounces of silver produced from just two of these veins.

Modern understanding of epithermal vein systems strongly indicates that many of the El Oro district's veins hold multi-million ounce discovery potential, particularly below the historic workings of the San Rafael vein, which was mined to an average depth of only 200 metres. Candente Gold believes that the San Rafael vein system is analogous to other epithermal vein systems in Mexico such as the Fresnillo, Guanajuato, and Pinos Altos mines where gold and silver occurs over 600 to 1200 metres vertically.

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 and Mark J. 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

Contact Information

  • John Foulkes
    VP Corporate Development
    mobile: +1 (604) 614-2999 or local: + 1 (604) 689-1957 ext 2
    toll free: 1 (877) 689-1964 ext 2
    info@candentegold.com
    or
    Walter Spagnuolo
    Manager, Investor Relations
    mobile: +1 (604) 306-8477 or local: + 1 (604) 689-1957 ext 3
    toll free: 1 (877) 689-1964 ext 3
    info@candentegold.com
    www.candente.com