Candorado Operating Company Ltd.
TSX VENTURE : CDO

Candorado Operating Company Ltd.

December 13, 2006 09:00 ET

Candorado Operating Company Ltd. Options Serb Creek Molybdenum Property

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - Dec. 13, 2006) - Candorado Operating Company Ltd. (TSX VENTURE:CDO)

Serb Creek:

The Company is pleased to announce that it has entered into an option agreement with Georgia Ventures Inc. (TSX VENTURE:GVI) "Georgia" enabling Georgia to acquire a 60% interest in the Serb Creek Molybdenum deposit located 40 km west of Smithers, B.C. Georgia will be required to make a cash payment of $60,000 and must incur $600,000 in exploration expenditures over a 2 year period in order to acquire the 60% interest. The property is subject to an underlying 2% net smelter royalty with a third party which can be purchased at anytime for $1.5 million.

The Serb Creek Molybdenum Deposit contains probable reserves of 41.5 million tonnes grading 0.08% MoS2 (Energy, Mines and Petroleum Resources of British Columbia Minfile) and is situated approximately 35 km southwest of Blue Pearl Mining's Davidson Molybdenum Deposit with measured and indicated resources of 83 million tonnes with a grade of 0.295% MoS2 at a cut-off of 0.20% MoS2 (source - Blue Pearl Mining's website).

The Serb Creek Deposit was discovered by Amax in the mid 1960s. Between 1965 and 1966 Amax drilled 19 holes totaling 21,600 feet. Five holes totaling 3,042 feet were drilled by Craigmont Mines Ltd. in 1975. All holes encountered molybdenum mineralization, including intercepts of 350 feet of 0.10% MoS2 in hole 65-12 and 320 feet of 0.08% MoS2 in hole 65-9. Based on available information, drill core was not analyzed for copper or gold. The reader should be cautioned that the historic reserve does not conform to National Instrument 43-101 requirements for reporting purposes; as such the Company is not treating these historic estimates as current reserves or resources. These estimates should not be relied upon until they have been verified by further due diligence and by the Company's "Qualified Person".

Mineralization of Serb Creek is centred on a fine-grained phase of a quartz monzonite stock cut by a northwest trending dyke swarm. The area of molybdenum mineralization lies within a broad oval-shaped pyrite halo, measuring 3 km x 2.2 km. Only a portion, 1.2 x 1 km, of the prospective geology was investigated by past drilling, leaving a large area open for further exploration.

W.R. Gilmour, P.Geo., of Discovery Consultants, was the Qualified Person who reviewed this news release.

About Candorado

Candorado is one of British Columbia's largest mineral rights land holder with its properties in Central British Columbia, the Serb Creek molybdenum deposit, the Eldorado property next to the BC Metal's Red Chris copper porphyry deposit and the Pitt Island VMS prospect all located in Northern British Columbia. Management is actively seeking joint venture partners for its mineral land holdings as an excellent way to further develop these properties to their potential while reserving its treasury for new acquisitions and property exploration.

Rene Bernard, Chairman

ON BEHALF OF THE BOARD OF DIRECTORS of Candorado Operating Company Ltd.

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Candorado Operating Company Ltd.
    Rene Bernard
    Chairman
    (250) 979-2590
    (250) 861-5751 (FAX)
    or
    Candorado Operating Company Ltd.
    Suite 208, 478 Bernard Avenue
    Kelowna, British Columbia, Canada, V1Y 6N7
    Website: www.candorado.com