Candelaria Mining Acquires the Remaining 40% Ownership of Pinos Gold Project
VANCOUVER, British Columbia, Dec. 05, 2018 (GLOBE NEWSWIRE) — Candelaria Mining Corp. (TSXV:CAND, OTC PINK:CDELF) (the “Company”) announces that it has agreed to issue 7,075,472 of the Company’s common shares (“Acquisition Share Issuance”) to the shareholders of Minera Apolo S.A. de C.V. (“Minera Apolo”) to acquire the remaining 40% of the shares of Minera Apolo.
Minera Apolo, incorporated in Mexico, holds several mining properties including the Pinos Gold Project (“Pinos”). For further details on Pinos, please see September 13, 2018 news release on Pinos’s Preliminary Economic Assessment (“PEA”).
The Company is currently seeking external financing to fund the development of the Pinos Gold Project. Financing alternatives may be in the form of equity and/or debt.
Curtis Turner, President and CEO of Candelaria Mining stated:
“I am pleased to announce that Candelaria will hold 100% of the Pinos Gold Project. The recently released PEA shows that Pinos is a great small scale project with the ability to grow with exploration potential. Developing the property as outlined in the PEA will allow us to commence with a low-capex project which will generate cash flows to allow further expansion in operations and exploration organically.”
The Acquisition Share Issuance remains subject to approval of the TSX Venture Exchange.
ON BEHALF OF THE BOARD,
Chief Executive Officer
For further information, please contact:
About Candelaria Mining
Candelaria Mining is a Canadian-based gold development and exploration company with a portfolio of highly prospective projects in Mexico, one of the world’s best mining jurisdictions. Candelaria’s 100% owned Caballo Blanco Project hosts an Indicated Resource of 521,000 ounces of gold and 2,170,000 ounces of silver (31,220,000 tonnes grading 0.52 g/t gold and 2.16 g/t silver) and an Inferred Resource of 95,000 ounces of gold and 590,000 of ounces of silver (8,630,000 tonnes grading 0.34 g/t gold and 2.14 g/t silver). Potential exists to increase these estimated resources through continued drilling and exploration. Candelaria also holds the Pinos Gold Project which hosts a Measured Resource of 4,444 ounces of gold and 228,892 ounces of silver (85,847 tonnes grading 1.6 g/t gold and 82.9 g/t silver) and an Indicated Resource of 20,586 ounces of gold and 267,745 of ounces of silver (175,697 tonnes grading 3.6 g/t gold and 47.4 g/t silver). For more information on resource estimates, please see the technical reports prepared pursuant to NI 43-101 which are available on the Company’s website at www.candelariamining.com.
Mineral resources referenced herein are not mineral reserves and do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, and mining loss but do include a dilution factor of 10%. The mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
The Company cautions that a PEA is preliminary in nature and that it relies upon mineral resource estimates which have the considerations noted above applied to them. There is no certainty that the PEA will be realized or that any of the resources will ever be upgraded to reserves.
Mr. Jose Antonio Olmedo, Eng. Geol. MSc. is an Independent Consultant, located in Mexico City, Mexico, who is an “Independent Qualified Person” as defined by NI 43-101 and the lead person responsible for completing the Pinos resource has reviewed this press release as it relates to the Pinos project.
Mr. David Salari, P.Eng. of DENM Engineering Ltd. located in Oakville, Ontario, Canada who is an “Independent Qualified Person” as defined by NI 43-101 and the lead person responsible for reviewing the metallurgical work for the Pinos resource has reviewed this press release as it relates to the Pinos project and has overseen the metallurgical and recovery methods and infrastructure.
Cautionary Note Regarding Forward-looking Statements
This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the business, operations and financial performance and condition of Candelaria Mining Corp. (“Candelaria” or “Candelaria Mining”). Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimation of mineral resources at mineral projects of Candelaria; Forward-looking statements are based on the opinions and estimates as at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Candelaria and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include variations in metal grades, changes in market conditions, variations in recovery rates, risks relating to international operations, fluctuating metal prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labor disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.