- Candelaria Mining 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 150,000oz/year gold producer.
- Caballo Blanco District contains one PEA-level project and 3-4 centers of gold mineralization with multiple drill-ready high-priority targets to be tested in 2022;
- 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 12-14 months construction schedule.
- Management team has decades of experience with major and junior mining companies in a variety of jurisdictions throughout the world.
2020 has changed the gold industry in many ways, with the early pandemic period seeing a significant spike in gold's value. One analyst aggregated forecasts to determine that the value of gold is projected to reach between US$2,000 and US$4,500 beyond 2021.
The recent peaks and troughs of the gold price have resulted in a resurgence in merger and acquisition activity. In 2021, the mining space saw big transactions completed: Newmont (NYSE:NEM,TSX:NGT) acquired GT Gold for US$311 million, Fortuna Silver Mines (NYSE:FSM, TSX: FVI) acquired Roxgold, AngloGold Ashanti acquired Corvus Gold.
In an interview with Byron King who writes Whiskey & Gunpowder at Agora Financial, he shared that major mining companies, "need some assets to start to support those valuations. So they have to start to look for ways of bulking up just their internal ownership of gold in the ground or development projects, if not early stage mining projects." King also reminded investors to look at juniors with management that have worked with major mining companies before.
Candelaria Mining (TSXV:CAND) is one such company. CEO Mike Struthers brings in an impressive 40 years of experience in mining 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; and 15 years with international mining firm AMC Consultants where he worked with an impressive clients 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 3 person team in Stockholm until retiring as a Senior VP Exploration and New Business Development.
Candelaria Mining is also strongly supported by major gold mining company and strategic investor Agnico Eagle.
The company currently has two 100-percent owned high-grade gold projects in Mexico: Pinos and Caballo Blanco, the company's flagship project. Candelaria Mining has the potential to become a 150,000 oz/year gold producer between these two high-grade assets.
The Caballo Blanco District contains a variety of low- and high-sulphidation epithermal gold targets, in 3-4 mineralized centers, together with porphyry Cu-Au targets in the south, and has six high-priority drill-ready targets that will be tested during 1H 2022. The most advanced project in the district, La Paila, had a PEA completed in 2012 (using $1150/oz gold price) which envisaged an open pit/heap leach project producing an average of 100 koz gold per year for 7 years. 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 has a construction timeline of 12-14 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.