Mexico Mines Tailings Project El Oro, Mexico. April, 2015

Transcription

1 Mexico Mines Tailings Project El Oro, Mexico April, 2015

2 Disclaimer Material contained in this presentation is provided solely for general knowledge and is not intended to be a comprehensive review of all matters and developments concerning Candente Gold Corp. ( Candente ) or its affiliates. Candente has taken all reasonable care in producing the information contained in this presentation. This information may contain technical or other inaccuracies, omissions, or typographical errors, for which Candente assumes no responsibility. Candente makes no representation or warranty regarding, and assumes no responsibility for, the use, validity, accuracy, completeness, reliability or currency of any claims, statements or information in this presentation. By attending or reviewing this presentation, you agree that Candente will not be liable for any injuries, losses, expenses or damages arising from the use of or reliance on information contained in this presentation, or any inaccuracy or omission in such information or failure to keep the information current. Information in this presentation is not a substitute for obtaining independent professional advice before making any investment decisions. Information contained in this presentation does not constitute an offer or the solicitation of an offer for the purchase of any securities of Candente. This information is not intended in any way to qualify, modify or supplement any information disclosed under the corporate and securities laws of any jurisdiction applicable to Candente. No securities commission or similar authority in Canada or any other country or jurisdiction has in any way passed on any of the information contained in this presentation and no representation or warranty is made by Candente to that effect. Cautionary Note to U.S. Investors We advise U.S. investors that this presentation uses terms which are not recognized by the United States Securities and Exchange Commission ( SEC ), including mineral resources, measured resources, indicated resources and inferred resources. The estimation of measured & indicated resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that mineral resources in these categories will be converted to reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically mineable, or will be upgraded into measured or indicated mineral resources. U.S. investors are cautioned not to assume that mineral resources in any of these categories will be converted into reserves. This presentation also contains information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that SEC mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. 2

3 El Oro District, Mexico 110 km WNW of Mexico City 27 claims covering 17,960 hectares Excellent access -paved highway to project Mining friendly population Excellent infrastructure & services Electric Grid Power available at site 3

4 Tailings Investment Highlights Opportunity to develop short term cash flow with little or no capital costs Positive 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 Historical metallurgical test work indicates minimum overall recoveries of 50%, with potentially higher recoveries of 60 to 70%, historical work achieved recoveries of over 80% in some tests To conduct infill drilling and metallurgical testing to confirm recovery expectations following completion of PEA Agreement with El Oro de Hidalgo municipality to process historic tailings for an 8% NPI ( Net Profits Interest ) Located adjacent to existing road access, power and water services 4

5 El Oro Mine Tailings Map 5

6 Processing Agreement with Minera Arcu Letter of Intent Signed Arcu to invest capital required in respect of the acquisition and installation of equipment related to both testing and operating of the mineral concentration and recovery processes for Tailings Arcu has extensive experience and technical expertise in developing and operating tailings reprocessing projects in Mexico 6

7 TRO Inferred Resource Estimate Classification Tonnes Au g/t Ag g/t Ounces Au Ounces Ag Inferred 1,267, ,900 3,061,200 An increase of ~ 40% gold content and 30% silver content from historic assessments due to: Recent topographic surveying resulted in increase in surface exposure from 5.6 to 6.8 hectares Increase in bulk density from 1.3 kg/m3, used historically to 1.5 kg/m3 - more typical for tailings such as at El Oro Note: * Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the accuracy of the estimate. Effective Date of Mineral Resource is July 8,

8 Upside Potential and Benefits Potential to increase resource from three other tailings deposits also under option to CDG in the El Oro area Remediation program would mitigate current potential environmental risks for Municipality and rehabilitate the current land making it available for the town s future development 8

9 TRO Path Forward Complete metallurgical test work to evaluate best process for highest profitability for CDG Parameters to be considered: Recoveries, capital and operating costs Test work by Arcu is to recover gold and silver for revenue to CDG Other test work also in progress to test other potential processes for gold and silver recovery Future work may involve Infill drilling and engineering studies including a PEA Focus is a straightforward/low-risk operation 9

10 Management Paul H. Barry, MBA, Chairman Over 30 years operating experience in mining and energy industries in senior executive roles. Senior Advisor Balfour Beatty Infrastructure Partners in acquisition of Upper Peninsula Power Holding Company Executive VP and CFO Kinross Gold Corp. ( ), oversaw $16.5 billion in assets and $5 billion in new debt financing Joanne Freeze, B.A., B.Sc., P.Geo., President and CEO Over 30 years experience in exploration management predominantly in gold and copper exploration. Co-Founder of Candente Resource Corp. in Guided the discovery and development of the Cañariaco copper deposit into Feasibility stage. Lead the acquisition of the El Oro gold project from Goldcorp in Sean Waller, P. Eng., Vice President Over 30 years experience in operation and Engineering studies. Former VP Global Business Development & Senior Project Manager with AMEC Americas Mining and Metals Division President of the Canadian Institute of Mining, Metallurgy and Petroleum ( CIM ) Faisel Hussein, MBA, Executive VP and Acting CFO Mr. Hussein has over fifteen years of finance and operations experience. Since 2010, he has been a Principal at Public Infrastructure Partners LLC (PIP), an operating platform and principal investor in the mining and energy sectors From 2006 to 2010, Mr. Hussein was an investment banker with RBC Capital Markets where he co-founded the Los Angeles investment banking office, expanded the firm's global footprint, and executed cross-border M&A and capital markets transactions. Prior to 2006, Mr. Hussein advised international governments regarding privatizations, large-scale utility operations restructurings, and bi-lateral donor agency investments. Mr. Hussein began his career as an investment banker in the NYC offices of Salomon Brother

11 Directors Larry Kornze, P. Eng., Independent Director Over 34 years in international gold exploration. GM Exploration Mexico and Central America and International Evaluations for Barrick Gold Corp. US Manager for Barrick especially Goldstrike - discoveries at Betze, Meikle, Deepstar, Screamer & Rodeo. Dr. Peter Megaw, Ph.D., Independent Director Mexican mineral exploration expertise since Specializes in Carbonate Replacement(CRD), Epithermal Vein and Porphyry Copper Deposits. Instrumental in discoveries at Juanicipio-Fresnillo, Platosa and Cinco de Mayo. Director of MAG Silver Andres Milla, M.A. Ec., Independent Director Active in Peruvian Investment Banking & Capital Markets since 1996, involved in transactions worth in excess of US$2 Billion. Former Board member of the BVL & Cabinet of Advisors of the Ministry of Economy & Finance of Peru. Dr. Kenneth G. Thomas, P. Eng., F.C.I.M., Independent Director Senior Vice President, Projects, Kinross Gold Corporation from 2009 to 2012 Global Managing Director Hatch 2003 to 2009, and Senior VP, Technical Services and Officer Barrick Gold 1987 to 2003 Paul H. Barry, MBA, Independent Director Over 30 years operating experience in mining and energy industries in senior executive roles. Senior Advisor Balfour Beatty Infrastructure Partners in acquisition of Upper Peninsula Power Holding Company Executive VP and CFO Kinross Gold Corp. ( ), oversaw $16.5 billion in assets and $5 billion in new debt financing

12 Appendix

13 Other Potential Tailings Deposits Jales Tiro México ~ 5.6 Has. Jales Esperanza ~ 6.0 Has Jales El Oro Mining ~ 3.05 Has. 13

14 Property Location and Access 14

15 Resource Estimation Parameters Resource constrained on West and North by offset of 30m from existing highway Cut-off grade of 2.5 g/t gold equivalent Gold and silver recoveries were 50% each Metal prices used 12-month rolling averages for: gold US$1,304.92/oz and silver US$20.67/oz Mining and processing costs and G&A used were $7.00, $27.00 and $11.00 US per tonne respectively 15

16 Resource Disclaimer Estimate reflects results of auger and channel sampling program (May 2014) as compared with extensive historic assessments including drill testing and metallurgical test work In 1990, Luismin drilled metres in 22 holes and in 1951, the Cooperativa de Las Dos Estrellas drilled metres in 184 holes Mineral resources reported herein have been estimated using criteria consistent with the Canadian Institute of Mining and Metallurgy ( CIM ) Definition Standards (2014) and in conformity with the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice (2003) guidelines Contained metal figures shown are in-situ. No assurance can be given that the estimated quantities will be produced. All figures have been rounded to reflect accuracy and to comply with securities regulatory requirements. Some summations may not agree due to rounding Reasonably expected that the majority of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with infill drilling, additional sampling, metallurgical testing, specific gravity and bulk density estimations, confirmation of grade quality continuity and with current quality assurance and quality control standards. In addition, mining methods, mineral processing, infrastructure, economic, marketing, legal, environmental, social and governmental factors would need to be considered 16

17 Mining History El Oro 1907: Mexico mine was owned by the Mexican Venture Company and started production on the San Rafael vein with the completion if the 100-stamp cyanide mill 1910: Company was sold to the London Exploration Company Limited and certain English and French interests 1912: Esperanza Mine was relinquished to the Esperanza Limited Company. The lowest grade ore profitably exploited contained 0.25 oz gold Au/ton and 2-3 oz silver Ag/ton 1920: American Mining Co. built a 120-stamp cyanide mill 1925 to 1937: In 1925, all of the mines and properties including the Mexico Mine were acquired by Las Dos Estrellas. Higher grade backfill, pillars and intermediate veins were mined at this time. A new crushing and processing plant was built to process this ore. Most of the Mexico Mine tailings were produced from 1919 to to 1960: Minera Dos Estrellas turned the mines over to the mine workers as debt repayment from 1937 and the La Cooperativa de Las Dos Estrellas en el Oro y Tlalpujahua continued operating as a salvage operation mining stope fill, back fill and exploitation of insitu higher grade pillars from the San Rafael/Veta Verde Veins 17

18 Terms of Agreement with El Oro de Hidalgo Municipality Phase I allows Company a one year period to carry out necessary test work to ascertain recoveries and potential economic viability of a tailings reclamation and reprocessing operation, for staged payments of US $25,000 and monthly rental of $3,000 starting 30 days after signing Phase II Processing includes an 8% NPI payable to the municipality during the period of operation. Agreement also provides the municipality with a reclamation program. Processing and reclamation process includes extraction, relocation and reprocessing of the tailings as well as reclamation of the current location which would both negate current potential environmental risks and allow better use of municipal lands 18

19 El Oro District, Mexico 19

20 Share Structure Shares Outstanding 96,206,923 Options 7,282,500 Warrants 847,400 Fully Diluted 104,336,823 Share structure as of February 27,

21 Vancouver TSX Main Board: CDG Suite Melville Street Vancouver, B.C. Canada V6E 3V6 Telephone: (604) Fax: (604) Toll Free: