Candelaria Mining

Overview

Candelaria Mining Corp. (TSXV:CAND) is a Canadian precious metals exploration and development mining company advancing two 100-percent-owned gold projects in Mexico: Caballo Blanco and Pinos

Strongly supported by major gold mining company and strategic investor Agnico Eagle, Candelaria Mining has the potential to become a 150,000 oz/year gold producer, buoyed by these two high-grade assets.

The company is led by a management team highly experienced in working with major mining companies. CEO Mike Struthers brings an impressive 40 years of experience, having worked for companies such as Lundin Mining (TSX:LUN), where he was projects director for seven years, working on a variety of capital projects and mine expansions; international mining firm AMC Consultants, where for 15 years with he worked with an impressive client list including majors such as Rio Tinto and BHP Billiton. Non-executive chairman Neil O'Brien was also part of Lundin Mining, helping grow the company from a three-person team in Stockholm until retiring as a senior VP exploration and new business development.

The Caballo Blanco District contains a variety of low- and high-sulphidation epithermal gold targets, in three to four mineralized centers, together with porphyry copper-gold targets in the south, and has six high-priority drill-ready targets. The most advanced project in the district, La Paila, had a preliminary economic assessment( PEA) completed in 2012 (using $1,150/oz gold price) which envisaged an open-pit/heap leach project producing an average of 100 koz gold per year over an eight-year mine life. La Paila has an initial indicated resource of more than 521 koz gold and inferred resource of more than 95 koz gold.

The district is adjacent to Azucar Minerals' El Cobre Property, which has demonstrated five porphyry systems to date.

Strategic investor Agnico Eagle recognizes the potential of the district and is strongly supportive of Candelaria. It is also worth noting that gold mining major Newcrest Mining owns 19 percent of Azucar Minerals.

Pinos, on the other hand, is a fully permitted historical epithermal gold vein complex that is construction-ready. It has a construction timeline of 12 to 14 months and will commence upon finalizing project financing. The project has a positive PEA that states an average yearly production of 12,700 gold equivalent ounces during the initial seven years of the mine life.

Company Highlights

• Candelaria Mining Corp. is an exploration and mining company focused on developing two high-grade gold projects in Mexico
• Agnico Eagle is a strategic investor with 16 percent stake in the company
• Both of Candelaria Mining's projects target high-grade gold assets that could see the company evolve into a 150,000-oz/year gold producer.
  • Caballo Blanco District contains one PEA-level project and three to four centers of gold mineralization with multiple drill-ready high-priority targets;
  • Caballo Blanco is adjacent to Azucar Minerals' El Cobre Property which has demonstrated five porphyry systems to date. Newcrest Mining owns 19 percent of Azucar Minerals.
  • Pinos is fully permitted with a 12- to14-month construction schedule.
• Management team has decades of experience with major and junior mining companies in a variety of jurisdictions throughout the world.

Key Projects

Caballo Blanco

This 100-percent owned project is located in the state of Veracruz on the eastern Mexican coast. The project location has excellent infrastructure with easy access, communications, and regional power networks all nearby. Water is supplied by local wells, and phone lines and high-speed internet have already been established.

The Caballo Blanco District contains two regional scale mineralization centers, referred to as the Northern Zone and the Highway Zone, each with multiple priority targets within. These targets comprise low- and high-sulphidation mineralisation, together with porphyry-style mineralization in the south-east. A 2017 CIM-compliant pit-constrained resource on the most advanced project, La Paila, contained 512 koz of gold in the indicated category, along with 95 koz as inferred material, with the potential for that resources to further expand in three directions.

Caballo Blanco is located near Azucar Minerals' El Cobre project that has five copper-gold porphyry zones along a 4- to 5-kilometer trend.

Pinos

The Pinos project is located in a highly productive mining belt located in Zacatecas, the second-largest mining state in Mexico. The project is 12 to 14 months away from production and has historically produced gold with grades of 30 to 50 g/t gold from the 33 shafts throughout the district.

This project already has excellent infrastructure, including a paved road directly to the mine's entrance. The project has been fully permitted and will be an underground cut-and-fill operation. Mill equipment is already available and the former mine development is usable with minor rehabilitation.

Existing infrastructure and facilities contribute to a low pre-production capital cost that will allow the mine to profitably operate at approximately US$85/tonne. A study is currently underway to further define the additional resource potential for the wider license area in this old mining district, and to prepare for construction.

Management Team

Mike Struthers - CEO

Mike Struthers is the former CEO and current director of Empire Metals, and projects director Lundin Mining Corp. responsible for multiple strategic brownfield growth projects in operations in Portugal and Chile. He was also formerly the COO/tech director of a Russian minerals company with large base-metals assets in Siberia; director/principal geotechnical engineer for major international mining consultancy. He led senior roles in mining operations in Africa and Australia, and accumulated 40 years of experience in the mining industry.

Ramon Perez - President, Director

Ramon Perez is the former VP and co-manager of Carrelton Horizon Natural Resource Fund, and previously the senior analyst in the Latin American division of Salomon Smith Barney Asset Management.

Armando Alexandri - COO

Armando Alexandri is a mining engineer with 40 years of experience in mining and metallurgical design with multiple companies, including COO Dia Bras in Mexico and Peru (Sierra Metals Inc), COO Core Gold Inc., and COO of Impact Silver. Alexandri is also a consultant and advisor to Apian Capital and numerous mining projects. He received his bachelor of engineering in mining engineering - cum laude from Universidad de Guanajuanto, Mexico in 1978, and qualified in business administration from Universidad de Monterrey in 1984. Together with a core team of engineers and geologists he has built and operated over 10 mines in Mexico.

Sam Wong - CFO

Former controller at Luna Gold, Sam Wong oversaw the finance division during Luna's transition from development through to commercial production. Wong is a chartered accountant and articled at Deloitte & Touche LLP in Vancouver, BC, where he specialized in assurance and advisory for mining companies.

Hector Felix Gonzalez Ramirez - VP Exploration

Hector Felix Gonzalez is an accomplished exploration and economic/mining geologist with over 17 years of experience. He was previously the geology manager with Sierra Metals (Bolivar Skarn plus four significant CRD/epithermal discoveries), project geologist for MAG Silver and chief geologist at Minaurum Gold.