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Caballo Blanco is located on the eastern coast of Mexico in the state of Veracruz, 65 kilometers northwest of the city of Veracruz. The project envisions a low CAPEX, simple heap-leach open pit mining operation targeting approximately 100,000 ounces of gold production annually.

Since acquiring the asset in July 2016, the Company has engaged with government authorities, community members and stakeholders.  Candelaria has also closed a strategic investment with Agnico Eagle Mines Limited for C$9.7 million and significant ownership in the Company. A thorough review and update of the current Environmental Impact Assessment has been completed and submitted to SERMARNAT, the Mexican Environmental Authority.  The permitting process will now follow federally mandated guidelines and timelines necessary for approval.

Current Mineral Resources

Mineralization at La Paila in the Northern zone remains open to the north and south along trend and at depth.  A 2,000 meter infill drill program was announced July 27, 2017 and will seek to confirm the resource model and provide tighter drill spacing in some areas of the resource. Numerous technical studies will be undertaken to advance Caballo Blanco. These include, but are not limited to, additional metallurgical test work, re-design of the conceptual pit, resource update, water supply studies and ore and waste rock characteristic studies.

Indicated and Inferred Resources (1)(2)(3)(4)
Category Tonnes Au Grade (g/t) Ag Grade (g/t) Contained Gold Ounces Contained Silver Ounces
Indicated 31,220,000 0.52 2.16 521,000 2,170,000
Inferred 8,630,000 0.34 2.14 95,000 590,000

1. The resource estimate is based on 200 diamond drill holes completed since the discovery of the La Paila mineralized zone. The resource available for blocks contained within a conceptual open pit using metal prices of $1150 US / oz Au and $21 US / oz Ag, using a cut-off of 0.11 grams per tonne (g/t) gold.
2. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.
3. Gary Giroux, of Giroux Consulting, along with Jim Cuttle B.Sc. P.Geo. are qualified persons as defined in NI 43-101 are authors of the technical report and responsible for the resource estimate.
4. The effective date of the resource estimate is March 20, 2017.

Caballo Blanco Project Summary

Ownership: 100% Candelaria Mining Corp.

Land Package: 19,815 ha of land of which Candelaria Mining Corp. is the registered owner. 

Description: The Caballo Blanco property is comprised of fourteen contiguous mining claims covering an area of 19,815 hectares.

Location: The Caballo Blanco Project is located on the eastern coast of Mexico (at 19°8'N, 96°8'W, 19 m (62 ft.) in the state of Veracruz 65 km northwest of the city. Veracruz is a major port city and municipality on the Gulf of Mexico and is well connected with an international airport. The city has a population of approximately 550,000 and is located along the coast 90 km north of the state capital of Xalapa along Highway 140.

Access: The Project is easily accessible and close to infrastructure. All materials and supplies needed for ongoing exploration, development and mining can be transported by truck via the Pan American Highway and new paved roads. The topography is semi rugged reaching elevations up to 700 meters from sea level. Communications are well established with phone lines and high-speed internet. Water supply is derived from local wells.

Climate: Veracruz has a tropical wet and dry / savanna climate. The wet season lasts from June to October during the high-sun months with July being the wettest month with a total of 385 mm of rainfall. The dry season is November to May with the driest month being March with only 13 mm of rainfall. The average temperature is 25.3°C, with minimum and maximum temperatures of -5 C and 50 C. The average annual rainfall averages 1564 mm.

Geology & Mineralization: Two large areas of epithermal gold mineralization have been discovered within the current CB property, referred to as the Northern Zone (includes La Paila) and the Highway Zone. Both are prominent high-sulphidation epithermal gold prospects that occur within extensive areas of clay and silica alteration.

The gold is very fine and occurs within a vuggy and brecciated silica alteration of an original andesite host rock in the upper levels of the surrounding epithermal system. The elongate and silicified gold rich mineralization at La Paila likely formed from fluid rising along a north trending fault structure well above a deeper intrusive ‘heat source’. 

Current exploration has shown that the main zone is oxidized at surface and extends several hundred meters in vertical depth.

Similar silica and clay alteration zones have been recognized at La Cruz and the Highway Zone that lie along a north-south linear trend over a distance greater than 9km.

Upon permitting success of a planned Phase I drill program, the Company will mobilize rigs to commence exploration of the Highway, Las Cuevas, Bandera Norte and Bandera Sur targets. The Company identified these targets as high priority following a detailed sampling program based on results from extensive geochemical, IP resistivity and geophysical studies. The results of these studies show very similar characteristics and correlations to those of the La Paila resource.  A map of high priority targets can be viewed above this summary.