Candelaria Mining Corp. (CVE:CAND) has provided a corporate update following recently announced additions to its board and executive team in anticipation of executing the construction project and an ambitious exploration program at its flagship asset at Caballo Blanco, in Veracruz, Mexico.
On February 1, the Vancouver-based company said it had appointed Mike Struthers to the CEO position as well as to its board of director, while former Lundin executive Dr Neil O’Brien took a seat on the board as its non-executive chairman.
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In Thursday's update, Struthers, Candelaria CEO, commented: “Both Neil and myself are very pleased to have joined Candelaria at this time, to help the Candelaria team take the Company to the next level. A goal for the next 12 months is to successfully execute the Pinos project and bring that mine back into production, in parallel with executing what we believe could be a very successful exploration program at the company’s flagship asset, the Caballo Blanco mineralised district.:
"We expect that Candelaria will evolve into becoming a producer in early 2022, and this will provide a strong platform for further development of the Company in 2022 and beyond. I look forward to sharing more information on these activities in due course," he added.
The company noted that the highly prospective Caballo Blanco licence area includes the more advanced La Paila project and seven other high-priority epithermal/porphyry drill-ready targets in two distinct mineralised districts.
The company said it plans to commence an aggressive 12-month exploration program in mid-2021 to test all high-priority targets and further expand the resources at La Paila, with results from high-potential targets adjacent to La Paila expected by year-end.
Depending on exploration results, the company added, it will then update resources for the licence area, and develop concepts for a series of open pits with a centralised processing facility. in parallel, the company will frame and execute a robust CSR program during 2021.
The gold-focused exploration and resource development company also said it is about to start construction of its first producing gold mine in Zacatecas, Mexico. The fully permitted Pinos Gold Mine will be an underground cut-and-fill operation on multiple high-grade epithermal quartz-gold veins, followed by comminution, agitated leach, counter-current decantation, and Merrill Crowe Au-Ag precipitation
The company said mill equipment for Pinos is already available, with the majority of former mine development accessible with minor rehabilitation, It added that major construction contracts are ready for execution, with an operations team already assembled.
With a 12 to 14 months construction schedule, the company said it expects to commence construction in Q2 2021, with a resource expansion and exploration drill programs defined.
Candelaria also announced the grant of incentive stock options under its stock option plan, to employees, directors and officers to purchase up to an aggregate of 1,025,000 common shares of the company at a price of $0.54 per share expiring five years from the date of grant. All options vest in three equal installments over 12 months.
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