Candente Resource Corp.
TSX : DNT

Candente Resource Corp.

August 10, 2006 05:05 ET

Candente Expands Higher Grade Core on the Canariaco Norte Copper Project in Northern Peru

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 10, 2006) - Candente Resource Corp. (TSX:DNT) ("Candente") is pleased to report that recent drilling has expanded the higher grade core and increased the total size of the known copper (Cu) deposit at Canariaco Norte in Northern Peru. The higher grade core has been expanded to a 15.2 hectare surface expression which is 23% of the surface expression of the 489 million tonne inferred resource grading 0.45% Cu (4.8 billion lb Cu) estimated to date. This portion of the deposit has an average grade of 0.76% Cu with 73% of the Cu comprising highly leachable chalcocite and copper oxides.

A total of seventeen drill holes (5088 metres) have been completed (in Phase III) since the updated inferred resource estimate of 489 million tonnes was completed and copper (Cu) results have been received for the first six holes. All of the six holes have significant Cu intersections, but hole 06-042 is of particular interest as it extends the higher grade core. Hole 06-042 intersected 27m averaging 1.26% Cu within 165m averaging 0.76% Cu and a larger zone of 304m averaging 0.64% Cu.

A Preliminary Assessment and Economic Evaluation (PAEE) on the Canariaco Norte deposit in Northern Peru was completed by Merit Consultants International Inc. (Merit) on June 26th, 2006. Payback on Capital Expenditures is estimated to be 5 years at $1.25 Cu, 3 years at $1.50 and 1 year at $3.00 Cu. Using a price of $2.00 per lb copper and an 8% discount rate, Merit estimated the following:

- Total cash flow of approximately US$1.9 Billion

- Annual cash flow of an average US$76 M over the 25 year life of mine



Phase III Drill Results
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Copper %
Hole From To Interval Grade Chalcocite
No. (m) (m) Metres Feet (%) & Oxide
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06-037 0 350(i) 350 1148 0.47 36
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includes 47 65 18 59 0.52 73
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06-038 0 55 55 180 Leach Cap N/A
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55 281(i) 226 741 0.39 55
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includes 55 65 10 33 0.56 80
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includes 105 281 176 577 0.41 60
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06-039 0 51 51 167 Leach Cap N/A
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51 299(i) 248 813 0.42 55
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includes 51 166 115 377 0.43 86
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includes 232 242 10 33 0.50 82
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06-040 0 63 63 207 Leach Cap N/A
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63 248(i) 185 607 0.27 56
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includes 63 184 121 397 0.36 77
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06-041 0 24 24 79 Leach Cap N/A
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24 349(i) 281(ii) 922 0.47 83
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includes 331 349 18 59 0.78 94
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06-042 0 18 18 59 Leach Cap N/A
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18 351(i) 304(ii) 997 0.64 72
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includes 127 291 164 538 0.76 76
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includes 180 207 27 89 1.26 87
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(i) End of Hole
(ii) Excludes Dyke - waste rock zones


The resource estimate that was used for the PAEE is classified as an Inferred Mineral Resource, consistent with the CIM definitions referred to in NI 43-101. Mineral resources, which are not mineral reserves, have not demonstrated economic viability. Candente is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issues which may materially affect its estimate of mineral resources.

Complete results, maps, cross-sections and all reports can be viewed at: http://www.candente.com/s/PeruProjects_Canariaco.asp.

Sampling and analytical procedures conform to NI 43-101 standards and are detailed in a previous Candente news release dated September 16, 2004. All samples were submitted to Actlabs in Lima, Peru. Michael J. Casselman, M.Sc., P.Geo. General Manager Exploration and Director, Robert van Egmond, P.Geo., Senior Geologist and Joanne C. Freeze, P.Geo., President and CEO, are the Qualified Persons as defined by NI 43-101 for the project discussed above and Joanne Freeze has read and approved the contents of this release.

Candente is a diversified exploration company with copper, gold, silver, and zinc projects in Peru and Mexico. Candente subscribes to principles, which ensure that its exploration and development activities are beneficial to the local communities.

Joanne Freeze, P. Geo., President & CEO

Release No. 173

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.
    Kelly Gray
    (604) 689-1957 or Toll Free: 1-877-689-1964
    or
    Candente Resource Corp.
    Evelyn Cox
    (604) 689-1957 or Toll Free: 1-877-689-1964
    info@candente.com
    www.candente.com