Candorado Operating Company Ltd.

Candorado Operating Company Ltd.

March 03, 2005 08:30 ET

Candorado Operating Company Ltd. Announces Lucky Ship Molybdenum Property Joint Venture


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANDORADO OPERATING COMPANY LTD.

TSX VENTURE SYMBOL: CDO

MARCH 3, 2005 - 08:30 ET

Candorado Operating Company Ltd. Announces Lucky Ship
Molybdenum Property Joint Venture

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 3, 2005) - Candorado
Operating Company Ltd. (TSX VENTURE:CDO) is pleased to announce that it
has entered into an option agreement with New Cantech Ventures Inc.,
whereby New Cantech will acquire a 50% interest in 8 mineral claims
consisting of 46 units (1150 hectares), known as the Lucky Ship property.

The Lucky Ship property is located in north-central British Columbia 75
kilometres south of the town of Houston. Recent logging roads provide
easy access to the property. The town of Houston is a regional center
with good infrastructure, and is serviced by transprovincial Highway 16
and the CNR railway. Geologically, the Lucky Ship deposit constitutes
part of the Skeena Arch, a geological province containing numerous
significant morlybdenum deposits, the most well-known being the Endako
Mine and the Yorke-Hardy deposit.

The Lucky Ship was discovered by prospectors in 1956 and was explored
intermittently by Amax Exploration Inc. in the mid 1960s. Amax's
exploration included mapping, trenching, geophysical surveys, and
drilling. As was common in those years, Amax filed physical work on its
claims for assessment credit and kept the results of its exploration
confidential. Amax's successor, Canamax Resources Inc. published a
"drill-inferred resource" on the Lucky Ship deposit without details
contained in a short paragraph in their 1983 filing statement 2956 to
the Vancouver Stock Exchange. Both Amax and Canamax are no longer
operating companies, however, an Amax summary report on the Lucky Ship
deposit written by T.J.R. Godfrey in 1967 reveals some details about the
deposit.

The Lucky Ship stock has two generations of breccias and two generations
of granitic intrusion. The last intrusive phase produced a granite plug
in the southern part of the complex. That plug is surrounded by a halo
of silicic and pyritic alteration containing abundant molybdenite
(MoS2), and has been termed "Main Molybdenite Zone". The highest grade
mineralization is found within a 45.7-m (150-ft) thick area adjacent to
the contact of the second-stage granite plug. A second mineralized zone,
the "Southern Lobe", is located southwest of, and could be an extension
of, the "Main Molybdenite Zone". A third mineralized area, the "North
Showing" is located 400 metres north of the "Main Molybdenite Zone".



------------------------------------------------------------------------
Drill Length of Average Topographic Depth Beneath
Hole Inter- MoS2 Elevation Surface of
section Content of Inter- Inter-
(%) section section
(estimated) (estimated)
m ft m ft m ft
------------------------------------------------------------------------
Main
Molybdenite
Zone
------------------------------------------------------------------------
Northern
Part LS-65-08 33.5 110.0 0.22 1027.2 3370 88.4 290
LS-65-09 67.1 220.0 0.14 1039.4 3410 88.4 290
------------------------------------------------------------------------
Northwestern
Part LS-64-02 51.8 170.0 0.19 890.0 2920 216.4 710
LS-64-01 36.6 120.0 0.29 832.1 2730 256.0 840
LS-65-14(a) 48.8 160.0 0.16 792.5 2600 307.8 1010
LS-65-16(a) 85.3 280.0 0.08 670.6 2200 457.2 1500
------------------------------------------------------------------------
Western
Part LS-65-10 36.6 120.0 0.27 1021.1 3350 106.7 350
LS-65-06 79.2 260.0 0.14 841.2 2760 268.2 880
LS-65-12(a) 79.2 260.0 0.16 707.1 2320 374.9 1230
------------------------------------------------------------------------
Southwestern
Part LS-65-11 128.0 420.0 0.13 978.4 3210 106.7 350
LS-65-03(a) 125.0 410.0 0.11 823.0 2700 256.0 840
LS-65-07(a) 64.0 210.0 0.22 813.8 2670 228.6 750
LS-65-15(a) 15.2 50.0 0.15 795.5 2610 259.1 850
------------------------------------------------------------------------
Southern
Part LS-65-15(a) 36.6 120.0 0.16 929.6 3050 91.4 300
LS-65-01 60.2 197.5 0.12 999.7 3280 30.5 100
LS-65-03(a) 55.8 183.0 0.12 999.7 3280 21.3 70
LS-65-07(a) 27.4 90.0 0.14 not reported not reported
------------------------------------------------------------------------
Southeastern
Part LS-65-12(a) 54.9 180.0 0.16 951.0 3120 61.0 200
LS-65-14(a) 39.6 130.0 0.25 1008.9 3310 21.3 70
LS-65-16(a) 61.0 200.0 0.19 877.8 2880 121.9 400
------------------------------------------------------------------------
Northeastern
Part LS-65-17 61.0 200.0 0.17 1011.9 3320 33.5 110
LS-65-04 12.2 40.0 0.11 1024.1 3360 170.3 170
------------------------------------------------------------------------
Southern
Lobe
------------------------------------------------------------------------
LS-65-18 18.3 60.0 0.13 not reported not reported
------------------------------------------------------------------------
North
Showing
------------------------------------------------------------------------
LS-65-05 15.2 50.0 0.14 914.4 3000 355.3 1100
------------------------------------------------------------------------
Note: This table is adapted from Table I of:
Godfrey, T.J.R.; 1967: Lucky Ship MoS2 Project;
Summary Report for Amax.

(a) denotes a drill hole with multiple intersections that Godfrey (1967)
included in more than one part of the Main Molybdenite zone.
------------------------------------------------------------------------


Godfrey used data from the above table to arrive at a "resource
estimate", which was intended as an "informal order-of-magnitude"
calculation. The "estimated resource" was not intended to be a properly
engineered resource estimate and can only be classified as an historic
"drill-inferred resource". The calculation would not be considered
rigorous under current practice and would not pass scrutiny for a
resource calculation under National Instrument 43-101.

Godfrey assumed an oval "tabular body with a true width of 150 ft (45.7
m), an average depth of 900 ft (274.3 m) and a strike length of around
4/5 of the granite plug of 1400 ft (426.7 m)" and assumed "a tonnage
factor of 10 cu. ft per ton". He estimated that the Lucky Ship "Main
Molybdenite Zone" contained approximately 18,400,000 tonnes (20,250,000
tons) averaging 0.163% MoS2. In the 1983 Canamax filing statement, this
was equated to 0.098% molybdenum using a ratio of MoS2/Mo of 1.6681.
That would translate into a gross metal weight of 39,700,000 pounds of
molybdenum in the ground. Recently, molybdenum has exceeded US$25/lb. -
this constitutes an in-ground gross metal value of C$1,240,000,000 for
the Godfrey resource calculation.

Candorado is assembling information in order to conduct an efficient and
successful program on the Lucky Ship property during 2005.

Dr. R.H. McMillan P.Geo., Cantech's designated "qualified person" under
National Instrument 43-101, has reviewed and approved the technical
information contained within this news release.

Terms of the option include the incurrence of $45,000 of exploration
expense within six months and annual payments over a six-year period
aggregating $485,000. The property is subject to a 2% NSR with a buy
back of 1% per cent for $1,000,000.

The Lucky Ship option is subject to the written consent of the
underlying optionor.

"Gordon Zelko"

Gordon Zelko, President, Candorado Operating Company Ltd.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Candorado Operating Company Ltd.
    Gordon Zelko
    President
    (250) 495-6359
    www.candorado.ca
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the content of the
    information contained herein.