Candente Resource Corp.
TSX : DNT

Candente Resource Corp.

April 06, 2006 05:35 ET

Candente Resource Corp.: Near Surface Starter Zone Identified at Canariaco Norte, Peru

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 6, 2006) - Candente Resource Corp. (TSX:DNT) is pleased to report that a near surface leachable potential Starter Zone has been identified within the updated independent inferred mineral resource estimate of 489 million tonnes (Mt) grading 0.45% copper (see News Release dated April 3rd, 2006) on the Canariaco Norte Zone of the Canariaco property, Northern Peru. The Starter Zone contains an Inferred Resource of 131 Mt grading 0.50% copper at a cut-off grade of 0.20% copper. Contained metal in the starter zone equals 1.44 billion pounds of copper.

Leachable copper makes up approximately 65% of the total contained copper in the Starter Zone, however, higher grade zones with higher percentages (approximately 87%) of leachable copper have also been delineated within the Starter Zone and are shown in Table II below. Both the Inferred Resource and Starter Zone are open for expansion both laterally and vertically as all drill holes to date have ended in significant copper grades, several of which are from 0.55% to 1.00% Cu. The Inferred resource only comprises 73% of the lateral (66 of 90 hectares) and 50% of the vertical (320 m of the 640 m) known extents to the deposit.



TABLE I: LEACHABLE STARTER ZONE - INFERRED RESOURCE(1)

------------------------------------------------------
Total Contained
Cut-off Grade Tonnes Copper Grade Copper
(% Cu) (Million) (% Cu) (Billion lbs)
------------------------------------------------------
0.5 60 0.66 0.87
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0.4 72 0.60 0.95
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0.3 114 0.54 1.35
------------------------------------------------------
0.2 131 0.50 1.44
------------------------------------------------------
(1) - Results based on total copper cut-off


TABLE II: DISTINCT(2) HIGHLY LEACHABLE PORTIONS OF STARTER ZONE
- INFERRED RESOURCE(3)


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Total Contained
Cut-off Grade Tonnes Copper Grade Copper
(% Cu) (Million) (% Cu) (Billion lbs)
------------------------------------------------------
0.5 22 0.75 0.36
------------------------------------------------------
0.4 39 0.66 0.57
------------------------------------------------------
0.3 68 0.57 0.85
------------------------------------------------------
0.2 100 0.52 1.14
------------------------------------------------------
(2) - Near surface leachable copper in zones of greater than 5
metres in thickness
(3) - Results based on leachable copper cut-off


Mike Casselman, Director and General Manager Exploration of Candente, states, "The potential quick payback offered by the near surface leachable copper at Canariaco Norte has the capability to turn the deposit into a near-term copper producer. The quick payback potential and leachability also means that production could start as a small operation and gradually grow into a more substantial producer as economics prove to warrant such."

An engineering scoping study is underway to assist Candente in evaluating the potential economics of an SX-EW copper operation at Canariaco. The initial focus is on the potential Starter Zone (near surface leachable) for quick pay back of capital costs. Merit Consultants of Vancouver B.C. is completing a Constructability Report, determining some of the construction costs and calculating potential Net Present Values (NPV) and after tax Internal Rates of Return (IRR) Cash Flow analyses for various copper prices and daily tonnage mining rates. Kappes Cassiday of Reno, Nevada is conducting a Pre-Scoping study designing the layout of surface facilities and determining the costs for constructing an SX-EW operation at Canariaco Norte. The goal of this detailed evaluation is to determine capital costs and optimum throughput options required for an economic copper heap leach operation at Canariaco Norte.

Canariaco Norte has many features that indicate it should be a low cost copper producer such as: road access, low elevations (2500 to 3200 m), availability of water, electricity, infrastructure, ports and a sparsely populated area with a local labour force readily available and favourable to exploration and development.

Total gold and silver content has not been estimated at this stage. The current focus is on the leachable copper content of the deposit and considering that gold and silver are not likely to be recovered by the leaching process, gold and silver analyses were not conducted on all of the holes.

The near surface starter zone mineral resource estimate is based on assay results from 5,456 m of drill core from a total of 12,945 drilled in 47 holes of which 36 were drilled by Candente in 2004 and 2005 and 11 were drilled in 1973, 1995 and 1999 by Ingemmet, Placer Dome and Billiton. The first 12 Candente holes were drilled at 100 metre spacings, the second phase of 13 holes were drilled at 150 m spacings and the last 11 at various intervals. The estimations for the preliminary resource were capped at a copper grade of 2%. Independent geologist James A. McCrea, P.Geo, and a Qualified Person as defined by National Instrument (NI) 43-101, was responsible for the mineral resource estimate dated March 31st, 2006 Mr. McCrea has read and approved the contents of this news release. The resource estimate is classified as an 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 30 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.

The NQ-size core from the 2004 and 2005 drill programs was cut in half with a diamond saw and sampled at two metre intervals on the property. 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 and reviewed by the Qualified Person.

The re-sampling of historic core samples from 9 of 11 holes drilled prior to Candente acquiring the property was also carried out by Candente personnel under the guidance of a qualified person under the NI 43-101 guidelines. Core samples were taken over varying intervals, but corresponding with the original alteration and mineralization breaks. The entire remaining core half was bagged and sent to ActLabs in Lima, Peru for copper re-assay, where it underwent the same procedure as described above.

The core from the 1973 drill program was collected along 2 metre lengths and analysed for copper and molybdenum. The core sizes were NCD to 50 m depth, NXWL to 170 m depth and BXWL for the remainder of the hole. A total of 66 composite geological samples were analysed for total copper, molybdenum, silver and gold. The "frio de la dithizina-benceno" assay method (colorimetric analysis) was used. Analyses were carried out by Plenge Laboratory in Lima and the laboratory of INGEMMET. Candente cannot comment on the reliability of the sampling and analyses carried out, however, the fact that INGEMMENT hole 73-001 was twinned by Candente's 04-008 hole and the results are very similar indicate that the data is reliable.

The core from Placer Dome's 1995 drill program was sent to and analysed by SGS-XRAL labs in Lima for copper, gold and molybdenum. No specific information on how they handled the core is available, however data from professional geologists of large companies is considered to be of high quality. In addition, Joanne Freeze has direct experience working with Placer Dome elsewhere and believes that they would have had detailed QA/QC programs in place at Canariaco. These would have included the use of blanks, standards, and check assays.

The core from Billiton's 1999 drill program was sampled in two metre intervals and the core was 1.875 inches in diameter - NQ. 50% of the core and blanks and standards were sent to ALS prep lab in Trujillo, Peru for gold (by Fire Assay, with AAS finish) and copper, lead, zinc, molybdenum and arsenic (by total digest - AAS).

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

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 they have read and approved the contents of this release.

Candente is a diversified copper and gold exploration company focused on increasing shareholder value through discovery. In addition to Canariaco, Candente has 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.

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.
    Joanne Freeze, P.Geo.
    President & CEO
    (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