Candente Resource Corp.
TSX : DNT

Candente Resource Corp.

March 04, 2007 05:00 ET

Candente Resource Corp.: Copper Resource Increased to 8.1 Billion Pounds Copper at Canariaco Norte, Peru

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 4, 2007) - Candente Resource Corp. (TSX:DNT) is very pleased to report that an updated independent mineral resource estimate has been completed on the Canariaco Norte Zone of the Canariaco property, Northern Peru. The report estimates a resource of 820 million tonnes (MT) grading 0.45% copper at a cut-off grade of 0.30% copper. Measured and Indicated resource categories make up 78% of the 820 MT. Contained metal in the 820 MT equals 8.1 billion (B) pounds (lb) of copper.

Within the 820 MT, a Starter Pit of 107 MT grading 0.60% Cu has been delineated with a strip ratio of 1.4 to 1. A total of 97% of the 107 MT is in the Measured and Indicated categories. Contained metal in the Starter Pit equals 1.4 B lb Copper.

The new resource is based on all drilling results as of December 2006, which include 82 holes drilled by Candente. As of March 1, 2007 a total of 101 holes have been drilled by Candente on the deposit. Drilling continues to both expand the size of the deposit laterally and vertically and move Inferred resources into the Indicated and Measured categories.

DECEMBER 2006 UPDATED RESOURCE



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Highly
Leachable
Contained (i)
Total Copper Copper Measured Indicated Inferred Copper Cut-off
Tonnes Grade (Billion Tonnes Tonnes Tonnes (% of Grade
(Million) (% Cu) lbs) (Million) (Million) (Million) Deposit) (% Cu)
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219 0.61 2.9 92 94 33 48.5 0.5
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474 0.52 5.4 170 223 81 44.4 0.4
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820 0.45 8.1 255 388 177 43.3 0.3
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1,177 0.39 10.1 320 540 317 41.2 0.2
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STARTER PIT
Within the 820 MT
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107 0.60 1.4 65 39 3 60.9 0.28
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(i) Highly leachable copper (chalcocite and oxide copper)


This increase from 489 to 820 MT in the resource is expected to greatly enhance the cash flow analyses from the Preliminary Assessment and Economic Study (PAEE) completed in June 2006. At that time NPV's for the project varied from $109M to $707M using copper prices from $1.25 to $2.50 per lb and a discount rate of 10%. A new PAEE is now in progress based on the new resource.

Highly leachable copper (chalcocite and oxide copper) makes up approximately 43% of the total contained copper in the Canariaco Norte deposit. Distinct zones of highly leachable copper appear both at the top of the deposit near surface, as well as at depth. The Feasibility Study will begin this month and will address the economics of an SX-EW copper operation at Canariaco and is initially focused on the 107 MT Starter Pit for quick pay back of capital costs. The Feasibility Study will also address the economics associated with the entire known deposit and determine whether the operation should continue with only leaching or add components for conventional milling once payback has been achieved.

The mineral resource estimate is based on assay results from 26,019 meters of drill core from a total of 28,928 meters drilled in 93 holes of which 82 were drilled by Candente in during 2004, 2005 and 2006. 11 holes were drilled in 1973, 1995 and 1999 by Ingemmet, Placer Dome and Billiton. Drill spacings vary from 50 to 225 metres. Independent engineer, Dr. David M. Stone, P.Eng., of MineFill Services, Inc., and a Qualified Person as defined by National Instrument (NI) 43-101, was responsible for the mineral resource estimate dated March 4th, 2007. The resource estimate is classified as a Measured, Indicated and Inferred Mineral Resource, consistent with the CIM definitions referred to in NI 43-101. This estimate will be filed in a Technical Report, compliant with NI 43-101 on SEDAR within 45 days. 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.

One half of the split core was collected by Candente's Peruvian geologists in accordance with industry standards and submitted to Actlabs in Lima, Peru for copper. Copper was analyzed by a four acid leach process on a 50 g split to give values for total copper, acid soluble copper, cyanide soluble copper and residual sulphide copper. Pulps from some of the same samples were sent to Actlabs laboratory in Ancaster, Ontario, Canada and analysed for an additional 36 elements (including silver) using Inductively Coupled Plasma (ICP). Gold analyses on these same samples was carried out by Actlabs, Lima using Fire Assay Fusion and Atomic Absorption Spectrometry (AAS) method on a 50g split. Five percent of all core samples were also sent to a second laboratory for check assays of total copper and total gold. Quality Assurance and Quality Control (QA/QC), including the use of sample standards, blanks and duplicates as well as chain of custody was monitored by Candente Exploration Manager, Robert van Egmond, P. Geo., and reviewed by the Qualified Person.

Maps, cross-sections and data can be viewed at: http://www.candente.com/s/PeruProjects_Canariaco.asp

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.

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.

Release No. 202

Contact Information

  • Candente Resource Corp.
    Thomas R. Rinaldi
    (604) 689-1957 or Toll Free: 1-877-689-1964
    or
    Candente Resource Corp.
    Joanne Freeze
    (604) 689-1957 or Toll Free: 1-877-689-1964
    Email: info@candente.com
    Website: www.candente.com