|By Marketwired .||
|January 23, 2013 04:00 AM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/23/13 -- Candente Copper Corp. (TSX:DNT)(PINKSHEETS:CCOXF)(LMA:DNT) ("Candente Copper" or "the Company") is pleased to report on progress of exploration and feasibility drilling on the Canariaco property.
One drill is working on Canariaco Norte focusing on metallurgical and geotechnical work. Three metallurgical holes have now been completed to depths of 201, 303 and 253 metres, respectively, and a fourth metallurgical hole is in progress. A second drill is working on exploration targets at Canariaco Sur and the first hole (CS-12-003) has been completed to a depth of 528 metres. Drilling has commenced on the second hole (CS-13-004).
Drill hole CS-12-003 was targeted to test a strong induced polarization ("IP") chargeability anomaly from a previous partially complete geophysical survey, thought to represent the pyrite halo of a porphyry deposit. A second IP survey was recently completed which expanded on the previous survey to cover the entire Canariaco Sur prospect area. Interpretation of the new and expanded IP survey and observations made from hole CS-12-003 indicates the pyrite halo is situated a further 300 metres to 400 metres to the west. Moderate to strong potassic and phyllic alteration has mostly obliterated volcanic and various porphyritic intrusive rock textures. Locally strong quartz-sulphide stockwork veining is also associated with potassic and phyllic alteration. Samples for drill hole CS-12-003 have been sent to ALS Chemex labs in Lima, Peru for ICP and assay analyses which will be reported once received.
Approximately 11,000 metres of feasibility drilling are planned for Canariaco Norte and approximately 4,000 metres of exploration drilling are planned for Canariaco Sur. Local employment to support the drilling and other project site activities is carried out on a rotational basis and over 260 villagers have now qualified for the 130 daily positions.
Working Table for Development for the District of Kanaris
The Company is also very pleased to report that a Working Table for Development for the District of Kanaris was installed by The National Dialogue Office of the Presidency of the Council of Ministers ("PCM") and the Ministry of Energy and Mines ("MINEM") in Chicalyo on Saturday January 19, 2013. The installation was conducted in a private meeting involving representatives of the Regional Government of Lambayeque, Representatives of the communities of Kanaris and Tupac Amaru, the Municipality of Ferrenafe and Kanaris, the National Water Authority, Ministry of Agriculture, Ministry of Development and Social Inclusion, as well as several institutions and professional associations. Following the meeting, the agreements that have been reached to ensure the development of this district, which is the poorest and least developed region of Lambayeque, will be announced.
During the meeting, it was highlighted that one of the goals of the development board is to foster dialogue, and seek understanding between the Company and the District of Kanaris with respect to the Canariaco mining project. Both the Company and members from the Community have demonstrated that they support this. This is considered a great opportunity to raise not only the understanding of the mining project but also the opportunities for development of the district and the country.
Officials also commented that that there is a relationship between some protests in Kanaris and current anti-mining sectors seeking to prevent investments in Peru, but in Kanaris many people are not in agreement with this attitude, they prefer to converse and have dialogue. The presence of leaders from the two communities in the District of Kanaris at the Working Table demonstrates this.
The fact that there is no previous mining experience in Lambayeque, has likely lead to a mistrust from a number of residents so MINEM is planning to carry out workshops on Responsible Mining in the community. The Department of Lambayeque and the District of San Juan de Kanaris do not currently receive the Mining tax ("Canon"), and therefore the development of Canariaco is considered a great opportunity for Lambayeque.
On January 20 and 21, 2013 a few roads providing access to the Canariaco project were blocked by some of the local villagers and other villagers also gathered near the Canariaco Camp to protest the exploration and feasibility work at Canariaco. These activities were carried out by approximately 150 people in total and have been peaceful. The roads were cleared and most of the protestors had departed the area by January 22. Company officials are in communication with the villagers and National Police are present at the Canariaco site.
These actions are understood to be in response to the establishment of the Working Table for Development for the District of Kanaris mentioned above.
About Candente Copper
Candente Copper's flagship project is the 100% owned, 7.5 billion pound, Feasibility stage Canariaco Norte Copper Project located in northern Peru's prolific mining district. The Canariaco Norte deposit contains a Measured and Indicated resource of 752.4 million tonnes grading 0.49% copper equivalent(i), and an Inferred Resource of 157.7 million tonnes at 0.44% copper equivalent(i).
Sean Waller, P.Eng., President and Joanne C. Freeze, P.Geo., CEO, are the Qualified Persons as defined by National Instrument 43-101 for the projects discussed above. They have reviewed and approved the contents of this release.
(i) The 'Measured and Indicated Resource' listed above consists of Measured Resources of 338.1Mt at 0.48% Cu, 0.08 g/t Au, and 2.0/t Ag (0.52% Cu Eq.), plus Indicated Resources of 414.3Mt at 0.43% Cu, 0.06 g/t Au, and 1.8 g/t Ag (o.46% Cu Eq.). All resources quoted in this release are based on a 0.30% copper cut-off grade and 229 drill holes completed to March 2008. (i)Copper equivalent grade including gold and silver, metal recoveries (gold 55%; silver 50%) and smelter returns (copper 96.5%: gold 93%; silver 90%) applied. Copper grade equivalent calculation: Cu Eq% =(Cu % + ((Au grade x Au price x Au recovery x Au smelter return%)+(Ag grade x Ag price x Ag recovery x Ag smelter return%))/(22.0462 x Cu price x 31.0135 g/t x Cu recovery x Cu smelter return%). The metal prices used are: copper US$2.50/lb, gold US$1,035/oz and silver US$17.25/oz.
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.
CAUTIONARY NOTE TO U.S. INVESTORS
We advise U.S. investors that this news release uses terms that are not recognized by the United States Securities and Exchange Commission ("SEC"), including "mineral resources", "measured resources", "indicated resources" and "inferred resources". The estimation of measured and indicated resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that mineral resources in these categories will be converted to reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically mineable, or will be upgraded into measured or indicated mineral resources. U.S. investors are cautioned not to assume that mineral resources in any of these categories will be converted into reserves.
On behalf of the Board of Candente Copper Corp.
Joanne C. Freeze, P.Geo., CEO and Director