Processing Agreement Of Mexico Mine Tailings

 

VANCOUVER - Candente Gold Corp. has received an Expression of Interest (EOI) for a proposed Processing Agreement for the Mexico Mine Tailings Reprocessing Operation planned at El Oro, Mexico.

The EOI was received by the Company from Minera Arcu S.A. de C.V (Minera Arcu), which has extensive experience and technical expertise in developing and operating tailings reprocessing projects in Mexico. In addition to their expertise, Minera Arcu proposes to invest capital required in respect of the acquisition and installation of equipment related to both testing and operating of the mineral concentration and recovery processes for the Tailings. During the testing period Candente Gold would receive all revenues from gold and silver sales. If the test work is successful, then Candente Gold will evaluate the installation of a full size plant.

The testing would be conducted in two stages. Stage One would start as soon as a definitive agreement is in place and would process up to 50 tonnes through a pilot plant. Stage Two would start as soon as permits are received. During Stage Two it is anticipated that approximately 2500 tonnes would be processed.

Joanne Freeze, President and CEO said the Company is very pleased to have an opportunity to assess on-site a potentially viable option for reprocessing the Tailings without requiring the Company to provide capital expenditures for an operation. Concurrently, the Company would continue with testing of other methods for recovery in order to compare the Company's options for maximum profitability from the Tailings.

Candente Gold reserves the exclusive right to decide to proceed or not with the Minera Arcu process, or to proceed with an alternate method of reprocessing the Tailings if such alternate method, in the sole determination of the Company, is considered technically superior and/or projected to provide better financial returns to Candente Gold.

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.