Candente Gold Secures Cornerstone for New Growth Strategy

VANCOUVER, British Columbia, Sept. 28, 2020 (GLOBE NEWSWIRE) -- Candente Gold Corp. (TSXV:CDG) ("Candente Gold” and/or the “Company”) is pleased to advise that the Company has signed the Definitive Agreement (in keeping with the Memorandum of Understanding (“MOU”) signed April 28^th, 2020) with Magellan Acquisition Corp. (“Magellan”) which gives Candente Gold the right to earn up to a 100% interest in the San Dieguito de Arriba beneficiation plant (“SDA Plant”) and take over their rights to a lease agreement on the El Dorado Property, both located in Nayarit State, Mexico.

SDA Plant

The SDA plant consists of a flotation plant which also includes a precious metals leach circuit - Merrill Crowe system and associated assets, licenses and agreements.   The plant has a ten year operating history at 100 tonnes per day but can be expanded to process mined material at a rate of up to 200 tonnes per day.   Historically its operation has been based on sales of flotation concentrates to smelters, and payment for precious metals content.   The plant lies within the rich Sierra Madre Occidental mineralized belt, which historically has yielded millions of ounces (“oz”) of precious metals and offers multiple high grade gold and silver epithermal vein opportunities.

The mill was operational from 2007 (by Minerales Vane S.A. de C.V.) until April 2017, processing material from various operations in the region on a both a profit sharing and toll basis.   The toll materials were tested prior to processing to estimate recoveries and concentrate grades. Typical reported recoveries were in the range 85 to 92% for gold and 72 to 77% for silver.    The mill operated as recently as February 2019 for processing of a bulk sample of approximately 600 tonnes. Due Diligence uncovered the requirements for usual wear and tear maintenance estimated at $95,000 to restore the mill to functional condition in order to receive and run a 1,000 tonne bulk sample from El Dorado. The Company has initiated discussions for potential lines of credit facilities with offtake groups.

El Dorado Gold-Silver Project

The El Dorado Gold-Silver Project is located in the Pacific Coastal Plain, State of Nayarit, within a district of epithermal vein systems which is known to host high grade gold and silver in several veins.    The El Dorado vein trend is the principal vein system within the property covering an area of 5 km x 3.5 km in size. Veining follows a general northeasterly strike dipping steeply to the NW.   A continuous reef outcrop forms a ridge 1.5 kilometers (“km”) in length. Additional discontinuous outcrops both to the NE and SW indicate a strike length of 3.5 km.