Candelaria Mining secures $10 million investment for Mexico project

Candelaria Mining secures $10 million investment for Mexico project

Candelaria Mining (TSXV:CAND) has captured a US$9.8 million strategic investment from Agnico Eagle Mines (TSX:AEM) for the development of its Caballo Blanco project in Mexico.

Acquired last year by Candelaria for $17.5 million, the gold-silver project has 590,000 ounces of gold at a grading of 0.52g/t and 2.17 million ounces of silver at 2.16g/t, in the indicated category.

The resource, located on the Eastern coast of Mexico, is contained with a conceptual open pit, and will use gold and silver prices of $1,150 per ounce and $21 per ounce respectively, with a cut-off grade of 0.11g gold.

Agnico’s vice-president of exploration Guy Gosselin said the deposit shares similarities with its own La India project, which it brought to commercial production in February 2014.

“We thought it was a good opportunity for us to get involved, and, for them, they’re going to use the proceeds to continue to advance studies and regional exploration. It was a good fit,” said Gosselin.

@RGNonline