Candente Gold Secures Cornerstone for New Growth Strategy - Seite 3

Candente Gold believes that Prospero’s Qualified Person (“QP”) is very well qualified and that the parameters used to arrive at the historical resource estimate are relevant and reliable, however the categories used in the estimate do not appear to be compliant with CIM Definition Standards. The Company’s QP cannot verify that a qualified person has done sufficient work to classify the historical estimates as current mineral resources and therefore the Company is not treating the historical estimates as current mineral resources. Historical reviews of the potential tonnes and the potential grades quoted below are conceptual in nature.

Prospero’s historical resource estimate was calculated using polygonal resources in 10 blocks based on intersections from 10 holes covering/in the Hundido and Intermedia Veins, using a tonnage dilution factor of 25% and a specific gravity of 2.8. Metal equivalencies were based on a gold price of US$1,000 per ounce (“oz”) and a silver value of US$20 per ounce.

Prospero’s historical estimate for the Hundido and Intermedia Veins is 190,000 tonnes grading 7.0 g/t gold and 173 g/t silver containing a historical resource of 40,926 oz gold and 1,014,030 oz silver. The grades and tonnages attributable to each vein are as follows:  

HISTORICAL ESTIMATE / MINERALIZATION INDICATED BY DRILLING

Vein	True Width m	Tonnes	Gold Equivalent g/t
Hundido	2.3	89,000	7.01
Intermedia	8.3	91,000	15.17

Notes:	1. Polygonal resources based on intersections from 10 holes.
	2. Tonnage reduced by 25% to allow for mining dilution and recovery loss.
	3. Does not constitute Reserves under SEC Industry Guide 7 nor Resources under current CIM Definition Standards

Based on all of the existing exploration data and previous historical resource estimates to date the Company believes that a Conceptual Exploration Target within 150 metres of surface has potential for: 110,000 to 200,000 tonnes of material grading from 4.4 to 9.8 g/t gold and 113 to 239 g/t silver containing between 22,500 and 41,000 oz gold and 500,000 to 1,000,000 oz silver, with secondary credits from lead and zinc. This in-situ conceptual estimate of the potential tonnes and grade is contained in unmined portions of the veins as previously delineated. It does not include vertical extensions of the veins below 150 m nor along strike where the veins have been mapped for 3.5 km nor additional exploration potential. The potential quantity and grade described above is conceptual in nature, that there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.