The Poten)al for Much More The El Oro Gold District, Mexico May, 2016 Joanne C. Freeze, P.Geo. is the Qualified person responsible for prepara;on of all technical Informa;on included
Disclaimer The material contained in this presenta1on is provided solely for your general knowledge and is not intended to be a comprehensive review of all ma:ers and developments concerning Candente Gold Corp. (‘Candente’) or its affiliates. Candente has taken all reasonable care in producing the informa1on contained in this presenta1on. This informa1on may s1ll contain technical or other inaccuracies, omissions, or typographical errors, for which Candente assumes no responsibility. Candente makes no representa1on or warranty regarding, and assumes no responsibility for, the use, validity, accuracy, completeness, reliability or currency of any claims, statements or informa1on in this presenta1on. By a:ending or reviewing this presenta1on, you agree that Candente will not be liable for any injuries, losses, expenses or damages arising from the use of or reliance on informa1on contained in this presenta1on, or any inaccuracy or omission in such informa1on or failure to keep the informa1on current. The informa1on in this presenta1on is not a subs1tute for obtaining independent professional advice before making any investment decisions. The informa1on contained in this presenta1on does not cons1tute an offer or the solicita1on of an offer for the purchase of any securi1es of Candente. This informa1on is not intended in any way to qualify, modify or supplement any informa1on disclosed under the corporate and securi1es laws of any jurisdic1on applicable to Candente. No securi1es commission or similar authority in Canada or any other country or jurisdic1on has in any way passed on any of the informa1on contained in this presenta1on and no representa1on or warranty is made by Candente to that effect. Cau,onary Note to U.S. Investors We advise U.S. investors that this presenta1on uses terms which are not recognized by the United States Securi1es and Exchange Commission (“SEC”), including “mineral resources”, “measured resources”, “indicated resources” and “inferred resources”. The es1ma1on of measured & indicated resources involves greater uncertainty as to their existence and economic feasibility than the es1ma1on of proven and probable reserves. U.S. investors are cau1oned not to assume that mineral resources in these categories will be converted to reserves. The es1ma1on of inferred resources involves far greater uncertainty as to their existence and economic viability than the es1ma1on of other categories of resources. U.S. investors are cau1oned not to assume that es1mates of inferred mineral resources exist, are economically mineable, or will be upgraded into measured or indicated mineral resources. U.S. investors are cau1oned not to assume that mineral resources in any of these categories will be converted into reserves. This presenta1on also contains informa1on about adjacent proper1es on which we have no right to explore or mine. We advise U.S. investors that SEC mining guidelines strictly prohibit informa1on of this type in documents filed with the SEC. U.S. investors are cau1oned that mineral deposits on adjacent proper1es are not indica1ve of mineral deposits on our proper1es . 2
El Oro District, Mexico • 110 km WNW of Mexico City • 27 claims covering 17,960 hectares • Excellent access -paved highway to project • Mining friendly popula)on • Excellent infrastructure & services • Power to Site EL ORO EL ORO 3
El Oro Gold-Silver Project Highlights One of Mexico’s highest grade historic gold and silver past producers. • Historic Production of 8M ounces of gold equivalent also from only 2 of more than 50 known veins • Historic production was over an average of only 200 metres vertically With Potential for more … . • Extension of gold-silver mineralization along strike and at depth in main veins, extension proven now key is understanding controls to higher grades • Potential for discovery of new veins near past production areas • Remnant gold-silver “resource” • New gold-silver targets recently identified within the district 4
El Oro District, Mexico 5
Mining History El Oro • Spaniards discovered Borda – Corona Veins in outcrop in 1500’s – silver dominated production • Development of three different profitable mines on the San Rafael vein by late 1800’s – 5 M oz Au eq production ~ 10:1 Ag:Au • Blind Discovery and bonanza payout by Dos Estrellas on Veta Verda – 3 M oz Au eq production • Several Smaller mines on other veins • Years 1925 to 1937: – In 1925 all mines and properties acquired by Dos Estrellas and mineral processed in a new crushing, grinding and cyanide processing plant built on the Dos Estrellas site • Years 1937 to 1960: – Minera Dos Estrellas operating as a (worker owned cooperative) salvage operation mining stope fill, back fill and exploitation of insitu higher grade pillars from the San Rafael/Veta Verde Veins 6
Candente at El Oro July 10 th , 2014 El Oro Tailings Inferred Resource contains 119,900 oz Gold and 3M oz Silver March 2013 Development of a 3D gold and silver grade model of El Oro Mining & Railway por;on of the San Rafael vein segment * significantly enhanced understanding of controls on mineraliza1on controls Feb 2013 Thirty-one explora;on targets (9 high priority) ASTER/structural interpret * district is underexplored May 2012 70% earn-in achieved from Goldcorp (achieved $10M in explora;on expenditures) Feb 2012 San Rafael Vein extended laterally to 3.5km and ver;cally to 500m * established addi1onal poten1al of San Rafael May 2011 Gold discovered deep in the San Rafael Vein (13.7 g/t Au over 3.0m) *confirms high grade gold poten1al at depth below old workings Feb. 2011 Unconformity Somera Tuff Discovery (1.17 g/t Au and 5.02 g/t Ag over 54.7m) * totally new form of gold-silver mineraliza1on – previously unrecognized
Candente Drilling San Rafael Vein Schema)c longitudinal sec)on showing past historic produc)on from the San Rafael Vein with Candente 2010-2011 Drilling Schema)c longitudinal sec)on showing past historic produc)on from the San Rafael Vein with Candente 2010-2011 Drilling; pre-mineral andesite sills
High Grade gold Intersected Above and Below the Esperanza Workings 3m of 13.7 g/t gold in faulted San Rafael Vein 126m below old workings confirms that high grade extends well below the limits of historical mining faulting has greatly reduced the width of the vein in this area. 9
Somera Tuff Discovery • Bulk Tonnage Potential • Best Evidence to Date that San Rafael is a Stacked Vein System 10
produc;on 11
Tailings Investment Highlights • Opportunity to develop short term cash flow with licle costs • Posi;ve results from Conceptual study for TRO by JDS Energy and Mining Inc. (“JDS”) April 2014 – Inferred resource of 119,900 oz gold and 3,061,200 oz silver – Addi;onal testwork required to fully assess metallurgy and appropriate treatment • Located adjacent to exis;ng road access, power and water services 12
El Oro Mine Tailings Map 13
Upside Poten)al and Benefits • Poten;al to iden;fy resources from three other tailings deposits also under op;on to CDG in the El Oro area • Remedia;on program would mi;gate current poten;al environmental risks for Municipality and rehabilitate the current land making it available for the town’s future development 14
TRO Path Forward • Complete metallurgical test work to evaluate best processing and/or treatment op;ons • Parameters to be considered: Recoveries, capital and opera;ng costs • Future work may involve Infill drilling and engineering studies including a PEA • Focus is a straighkorward/low-risk opera;on 15
Historic Drill Intersec)ons by Luismin in Areas Previously Mined Drill Hole ID From(m) To(m) Intercept(m) Au g/t Ag g/t SR-93-01 191.0 193.0 2.0 6.90 58.26 Post mineral volcanics to 125m 198.0 199.5 1.5 15.10 91.00 216.5 217.5 1.0 4.11 49.80 229.0 230.0 1.0 6.18 25.80 254.2 255.5 0.87 4.22 44.70 SR-93-02 167.3 168.0 0.7 3.25 49.10 Post mineral volcanics to 125m 183.5 189.5 5.9 1.51 80.05 201.5 207.0 5.5 5.40 87.00 207.0 210.5 3.5 23.20 224.00 201.0 213.0 12.0 10.10 121.49 SR-93-04 274.1 275.5 1.4 1.05 75.00 SR-93-05 263.5 266.5 3.0 0.31 146.00 Post mineral volcanics to 175m 266.5 271.0 4.5 1.77 307.00 283.0 285.0 2.0 4.00 81.00 SR-93-06 289.5 290.0 0.5 0.46 77.80 Post mineral volcanics to 275m 300.0 304.5 4.5 0.77 103.00 329.0 332.0 3.0 0.14 133.00 332.0 334.0 2.0 0.19 213.00 334.0 336.8 2.8 0.11 76.80 SR-93-07 243.0 243.5 0.5 1.07 80.00 SR-93-08 238.5 240.0 1.5 15.90 59.30 (volcanics to 130m depth) 240.0 241.5 1.5 10.80 66.50
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