Due Diligence Team Successful on Western Mexico Projects

VANCOUVER, British Columbia, July 09, 2020 (GLOBE NEWSWIRE) -- Candente Gold Corp. (TSXV:CDG) ("Candente Gold” and/or the “Company”) is pleased to advise that due diligence visits have been conducted at both the San Dieguito de Arriba processing plant ("SDA plant") and the historic El Dorado Mine both in Nayarit, Mexico. The examination of the SDA plant found all key components in good order and, as expected, identified the need for the replacement of various working parts for which a cost estimate is being prepared.  The historical mine, La Hundida, at El Dorado, was accessed both on surface and underground.

In April 2020, Candente Gold signed a Memorandum of Understanding ("MOU") with Magellan Acquisition Corp. ("Magellan") giving Candente Gold the right to earn up to a 100% interest in both the SDA plant and the El Dorado property.  The site visits to the SDA plant and El Dorado Project represent the physical inspection portion of Candente Gold’s due diligence on the properties.  The reviews will provide the Company with valuable information to progress toward a definitive agreement and implementation of the initial stages of our growth strategy. Legal due diligence work is ongoing although preliminary reviews have not identified any concerns.

In the historical La Hundida Mine, underground workings were found to be in stable condition. Rock chip sampling was conducted and samples were collected and sent to Altiplano Gold Silver SA de CV laboratories in Matehuala, San Luis Potosi, Mexico for assay and metallurgical testing.  Due to the current COVID19 travel restrictions, the Company’s Qualified Persons cannot verify the Quality Assurance and Quality Control (“QA-QC”) procedures carried out during the sampling process but understand that it was overseen by Ing. Gerardo Moreno, an experienced Geological Engineer and Project Manager with more than 35 years of experience with mining projects.

The results of these tests along with recommendations for rehabilitation work and projections of ongoing operating expenses will provide the basis for a cost estimate to return the plant to operational status with feed material from the El Dorado Property.  The company is targeting a 1000t bulk sample for an initial trial run.

The SDA plant was operational from 2007 (by Minerales Vane S.A. de C.V.) until April 2017, processing ore from various operators in the region on a toll and partnership basis.  Magellan acquired the SDA plant from Rose Petroleum in November 2017 through the purchase of its subsidiary, Minerales Vane, for a value of $1.5M ($1M cash plus shares).  Magellan only operated the plant in February 2019 when processing a bulk sample of approximately 600 tons for a tolling opportunity.  While the results of the test were encouraging, the supplier subsequently experienced challenges in providing feed to the plant on a consistent basis and therefore the plant has not operated since.