VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 14, 2012) - Candente Gold Corp. (TSX:CDG)(BVL:CDG)(PINKSHEETS:CGDXF) -
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Candente Gold Corp. ("Candente Gold") is pleased to announce that additional gold and silver mineralization has been intersected well below the historical workings of the San Rafael Vein on the El Oro gold project, Mexico. Drilling by Candente has now shown that the San Rafael Vein extends over a minimum of 3.5 kilometres in strike length and 500 meters vertical.
Hole SR11-012-W2, which is the deepest San Rafael Vein intersection to date, intersected 26.95 metres of vein material from 874.65 to 901.60 metres, approximately 194 metres below drill hole SR11-001A and 301 metres below the historic production workings of the Mexico-Esperanza mines area.
Assays from SR11-012-W2 include 0.55 g/t gold over the full 26.95 metre section, and higher grade zones within this interval including 6.16 g/t gold over 1.60 metres. All 'pending' assays from Candente Gold News Release 019 (November 2, 2011), including this hole, are reported below in Table 1.
"The Mexico-Esperanza area is an exceptional exploration target within the San Rafael Vein system as well as hanging walls veins and an overlying volcanic tuff unit. Three separate high-grade intersections of the San Rafael Vein, SR11-001A and SR11-012-W2 from current drilling, and SR07-002 from 2007 drilling indicate the continuation of mineralization at depth below the deepest old workings. These intersections, combined with three high grade gold and silver intersections (SR10-002A, SR10-002-W1 and SR11-001A in hanging wall veins), as well as disseminated mineralization in overlying tuffaceous volcanics (SR-11-001A) indicate strong vertical controls to mineralization in this area. The Mexico-Esperanza area also had the highest grades of historic production (12-16 grams per tonne gold over an average vein width of 10 metres). Having proven our key concept of a stacked mineralizing system, we are now excited to test this concept on some of the other veins in our El Oro project," states Joanne Freeze, Candente Gold President & CEO.
Varying assemblages of anomalous levels of base and precious metals were encountered at various depths within the San Rafael vein system, and show no pattern related to increasing depth. Given that typical low sulphidation epithermal systems precipitate gold at their highest levels (the boiling zone), then silver, and then base metals towards the bottom of a system, this is further evidence that the San Rafael system has experienced multiple overlapping pulses of mineralization.
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Table 1 - San Rafael Vein Summary of Surface Drilling - November 2, 2011 to
current
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Somera San Rafael
Total Tuff Vein
Hole Length inter- inter- Width Au Ag
Number (m) sected (m) sected (m) From (m) To (m) (m) (g/t) (g/t)
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SR11- not 356.95 to
009C-W2 146.4 targeted 413.35 367.15 371.20 4.05 0.78 17.8
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367.95(i) 371.20(i) 3.25 0.83 19.2
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389.65 390.14 0.49 3.70 15.0
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411.48 414.20 2.72 0.26 23.9
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SR11-010 not
460.3 targeted 282.60 283.50 0.90 0.11 24.5
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399.01 to
415.96 400.78 401.20 0.42 3.93 3.5
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417.91 418.70 0.79 2.31 1.0
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SR11- not
010-W1 345.6 targeted 168.00 169.90 1.90 0.24 18.0
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206.00 206.45 0.45 1.62 20.0
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439.65 to
445.45 439.00 443.35 4.35 0.07 18.4
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445.76 448.60 2.84 0.07 1.7
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SR11-011 not not
417.6 targeted intersected hole lost - no samples assayed
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SR11- not 472.96 to
011-W1 372.7 targeted 485.40 no significant results
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SR11-012 317.19 to not hole lost in Somera Tuff - no samples
341.4 341.40 intersected assayed
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SR11- not hole lost in Somera Tuff - no samples
012-W1 40.0 intersected assayed
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SR11- 316.85 to
012-W2 696.7 379.65 345.20 410.50 65.30 0.30 1.9
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378.55(i) 410.50(i) 31.95 0.40 2.1
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387.15(i) 400.20(i) 13.05 0.60 2.1
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393.40(i) 400.20(i) 6.80 0.80 2.7
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874.65 to
901.60 874.65 901.60 26.95 0.55 2.3
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874.65(i) 877.05(i) 2.40 4.45 2.3
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874.65(i) 876.25(i) 1.60 6.16 3.0
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957.07 957.55 0.48 0.43 37.5
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SR11- not
012-W3 147.8 intersected no significant results
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(i) Included in the interval above
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Table 2 - Selected Intervals Showing Anomalous Levels of Base & Precious
Metals
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Elevation Au Ag Cu Pb Zn
Hole Number (masl) (g/t) (g/t) (ppm) (ppm) (ppm) Summary
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SR10-001-W1 2552 0.022 230.00 18 4 102 Ag, Zn
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SR11-009C-W2 2540 1.337 6.00 25 2 38 Au
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SR11-009C-W1 2533 1.780 84.00 21 1 10 Au, Ag
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SR11-009C-W2 2531 0.830 19.20 19 6 23 Ag
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SR11-009C 2517 0.597 65.50 22 8 70 Ag
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SR11-009C-W2 2512 3.703 15.00 19 8 66 Au, Ag
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SR11-009C 2495 3.100 1.50 32 6 36 Au
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SR11-009C-W2 2491 0.513 87.50 24 12 42 Ag
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SR11-009C 2487 0.296 176.40 26 1 42 Ag
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SR11-007 2462 0.070 523.60 23 10 60 Ag
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SR10-002A 2452 2.950 20.00 24 8 70 Au
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SR11-010 2445 3.934 3.50 55 96 186 Au, Cu, Pb, Zn
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SR11-010 2429 2.306 1.00 9 36 276 Au, Zn
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SR11-010-W1 2412 0.066 18.45 10 7 33 Ag
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SR11-004-W1 2405 0.070 315.00 426 16 74 Ag, Cu
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SR11-004 2385 7.700 3.50 65 278 914 Pb, Zn
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SR11-008 2373 5.750 14.00 104 1024 1322 Au, Ag, Cu, Pb, Zn
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SR11-008 2365 2.060 7.00 30 38 126 Au, Zn
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SR11-001A 2302 13.690 6.50 20 22 56 Au
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SR10-001-W1 2241 0.073 14.50 76 0.5 96 Zn
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SR10-001 2240 0.031 54.00 22 4 40 Ag
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SR11-003-W2 2229 3.828 4.50 45 16 120 Au
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SR11-003-W1 2215 1.038 3.00 101 184 220 Au, Cu, Pb, Zn
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SR11-003 2207 0.119 3.85 49 11 159 Zn
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SR11-006 2206 1.276 1.00 24 2 30 Au
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SR11-006 2159 1.158 2.00 48 54 128 Au
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SR11-012-W2 2108 6.164 3.00 11 8 74 Au
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SR11-012-W2 2066 0.295 4.00 103 318 368 Cu, Pb, Zn
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Figures 1-4 that accompany this release are available from http://www.candentegold.com.
Dos Estrellas Tunnel Rehabilitation
Underground rehabilitation in the pre-existing Dos Estrellas access tunnel is ongoing, and has now advanced to over 460 metres. The objective of reopening Dos Estrellas is to provide access for underground drill stations to test well below the historical underground workings in both the Verde and San Rafael Veins using much shorter holes than would be required from surface.
The Verde Vein produced over 3 million ounces of gold equivalent at average grades of 12 g/t gold and 160 g/t silver between 1907 and 1924. The first underground drill station to test the Verde Vein will be established in the hanging wall, in a crosscut approximately 480 metres into the Dos Estrellas tunnel.
Exploration Plans
The current phase of drilling at El Oro is now complete. A total of 12,819.45 metres have been drilled since November 2010, in 35 holes targeting the San Rafael and its hanging wall veins. Of these holes, 15 were wedges, or shorter holes started part way down a main hole, and 14 holes were lost or abandoned due to difficult drilling conditions before they reached target depth. Establishing underground drill stations is expected to significantly decrease the number of lost and abandoned holes in the future. Of the 21 successfully completed holes, 18 have intersected anomalous to high-grade gold and silver mineralization.
Systematic exploration including detailed mapping and surface sampling is underway in several parts of the district. This work together with a thorough review of the extensive database for the district is being used to prioritize future exploration targets in the El Oro gold-silver district. Targets have already been developed in the Verde, Borda-Coronas, Cortaduras and San Francisco de Los Reyes areas.
The El Oro district includes over 50 known veins and is analogous to other epithermal vein systems mined in Mexico such as Fresnillo, Guanajuato and Pinos Altos, where gold and silver has been found to occur over 600 to 1200 m vertically. Given that historic production was concentrated on two veins over vertical depths averaging 200 metres the exploration potential is excellent.
Property Option Agreement
Candente Gold is earning its interest in the El Oro Property from Luismin, S.A. de C.V. ("Luismin") and Desarrollos Mineros San Luis, S.A. de C.V. ("Desarrollos"), subsidiaries of Goldcorp Inc.
The Option is comprised of an option to initially acquire 50% of El Oro (the "First Option") and then a further 20% (the "Second Option"). By May of 2011 the Company had completed the First Option by making cumulative exploration expenditures totalling $5,000,000 and by issuing a total of 1,000,000 Candente Gold shares.
The Company also advised Goldcorp that it had elected to earn an additional 20% interest in El Oro for a total of 70%, by spending an additional $5M and issuing an additional 1,000,000 common shares in the capital of the Company by November 30, 2013. As of December 31, 2011 approximately $4.5M of this $5M has been spent.
Assays and Qualified Persons
Rock and core samples were sent to Inspectorate laboratories in Durango, Mexico for preparation and to Reno, Nevada, USA for analysis with duplicates assayed by ALS-Chemex in Vancouver, Canada. Both labs are certified assay laboratories and conform to National Instrument 43-101 standards for independent assay laboratories. Samples were initially run for 32 element ICP to determine the trace-element analysis. Gold values were determined by Fire Assay with an Atomic Absorption finish. Over-limit values of gold (greater than 10 g/t) and silver (greater than 100 g/t), were confirmed with Fire Assay-Gravimetric Analysis. Joanne C. Freeze, P.Geo., President and CEO of Candente Gold is the Qualified Persons as defined by NI 43-101 for the project discussed above and has read and approved the contents of this release.
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 several 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 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.
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
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