Candente Resource Corp.
TSX : DNT

Candente Resource Corp.

January 18, 2006 14:52 ET

Candente and Gallipoli Commence Drilling on Alto Dorado Gold-Copper Property in Peru

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2006) - Candente Resource Corp. (TSX:DNT) (Candente) is pleased to announce that drilling has commenced on the Alto Dorado gold-copper project in Peru. Approximately 2,200 metres (m) (7,216 feet) are planned to be drilled in 6 to 12 holes. Drilling is expected to take approximately 5 weeks to complete.

The drilling is being funded by Gallipoli Mining of Australia ("Gallipoli") who have the right to earn a 50% interest in the Alto Dorado property by incurring exploration expenditures of US$5.4 million over 3.5 years and may elect to increase their interest to 65% by funding and completing a bankable feasibility study on the property within the following 3 years. (Candente News Releases dated December 8th and 21st, 2005).

Joanne Freeze, President and CEO comments that, "Both the deal structure and Gallipoli management's key involvement at Bajo de la Alumbrera (Argentina) make Gallipoli a very strategic partner both for the exploration phase and for a development phase. Either a 50% interest in a major gold-copper discovery or a 35% interest in a gold-copper deposit with a Bankable Feasibility Study should make an excellent return on Candente's investment." Goldcorp's 37.5% interest in the Bajo de la Alumbrera mine in Argentina earned them US$81.479 million in the third quarter of 2005 alone (www.goldcorp.com). (A bankable (full) feasibility study is a comprehensive analysis of a project's economics (+/- 15% precision) and is used by the banking industry for financing purposes).

This phase of drilling is targeting porphyry style alteration zones coincident with gold and copper geochemical anomalies and high chargeability (IP) zones. The Alto Dorado property covers an extensive gold-copper porphyry style mineralizing system, which is 9 kilometres (km) in length and from 2 to 3 km in width. The mineralizing system is delineated by anomalous levels of gold, copper, molybdenum and silver in soils and rocks, typical porphyry style alteration and Induced Polarization (IP) chargeability anomaly (often associated with sulphide gold and copper mineralization) which to date covers 7 km by 2 km. Two holes previously drilled 5 km apart intersected anomalous gold and copper levels over 176 m and 160 m vertically (0.22 gpt Au, 0.17% Cu and 0.13 gpt Au, 0.08% Cu).

For more technical information on the Alto Dorado property please refer to:
http://www.candente.com/s/Projects_Peru.asp?PropertyInfoID=655&View=1

Sampling and analytical procedures conform to NI 43-101 standards and are detailed in previous Candente news release dated September 16, 2004. All samples will be submitted to Actlabs in Lima, Peru. Michael Casselman, P.Geo. and Joanne Freeze, P.Geo., are the Qualified Persons for the project as defined by NI 43-101 and Joanne Freeze has reviewed this news release.

Candente is a diversified copper and gold exploration company focused on increasing shareholder value through discovery. Candente has an advanced exploration stage leachable copper project, Canariaco, and several other gold, copper and silver projects in Peru. Candente subscribes to principles which ensure that its exploration and development activities are beneficial to the local communities.

ON BEHALF OF THE BOARD OF DIRECTORS

Joanne Freeze, P. Geo., President & CEO

Candente Resource Corp.

Release No. 151

This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Candente relies upon litigation protection for forward-looking statements.


Contact Information

  • Candente Resource Corp.
    Evelyn Cox
    (604) 689-1957 or Toll Free 1-877-689-1964
    or
    Candente Resource Corp.
    Bruce Korhonen
    (604) 689-1957 or Toll Free 1-877-689-1964
    info@candente.com
    www.candente.com