Vancouver, British Columbia, December 12, 2013. Candente Copper Corp. (TSX:DNT, BVL:DNT, US:CCOXF) ("Candente Copper" and/or the "Company ) is pleased to announce that Compañia Minera Zahena S.A.C. (Zahena), has entered into an Option Agreement (the "Agreement") with Cobriza Metals Peru ("Cobriza") for its Arikepay copper-gold porphyry project, located in southern Peru. Cobriza is a wholly owned subsidiary of Candente Copper.
"We are very pleased to have a partner with the technical experience and strong financials of Zahena to advance exploration at Arikepay," commented Mike Thicke P.Geo., Candente's Vice President of Exploration . "Partnering with Zahena to advance the Arikepay project is the first step in a new strategy of Candente to increase shareholder value by expanding our exposure to various projects." The Arikepay copper-gold porphyry system was an entirely new porphyry discovery by the Cobriza-Candente geological team, which generated a high level of interest from a number of mining companies.
Zahena can earn a 75% interest in Arikepay by making USD$5 million (M) in exploration expenditures and USD$4M in payments to Cobriza Metals Peru within 4 years (the "First Option"). A USD$50,000 payment on signing the Agreement and 3,000m of drilling within 12 months of receiving all drilling permits are firm commitments.
Upon completion of the First Option, Zahena can earn an additional 25% interest, by completing a bankable feasibility study and by paying Cobriza USD$10M within 5 years of earning its initial 75% interest (the "Second Option"). The completion of the Second Option would result in Zahena earning 100% interest in Arikepay subject to a 2% Net Smelter Return ("NSR") to Cobriza.
Zahena would retain the right to purchase 1% of the NSR for USD$5M at any time up to 60 days from the start of commercial production, leaving Cobriza with a 1% NSR. A final payment of USD$5M would be made to Cobriza 60 days from the start of commercial production or within 4 years of completion of the bankable feasibility study, whichever happens first.
Cobriza drilled 14 wide spaced reverse circulation holes at Arikepay in 2012 and defined a mineralized porphyry system that measures at least 2,200 meters (m) by 700m-1,200m and continues to a depth of at least 300m (maximum drill machine capacity). Within the mineralized porphyry system is an area of significant copper, gold and silver mineralization that measures at least 1,200m by 800m and extends to a depth of at least 300m. At least two thirds of the mineralized porphyry system is covered by recent gravel cover deposits. Highlights of the 2012 drilling include:
- 142m of 0.51% Cu Eq* in hole RC-12-ARI-006
- 186m of 0.43% Cu Eq* in hole RC-12-ARI-011
- 292m of 0.39% Cu Eq* in hole RC-12-ARI-002
- 170m of 0.31% Cu Eq* in hole RC-12-ARI-013
- 146m of 0.31% Cu Eq* in hole RC-12-ARI-003
- 80m of 0.35% Cu Eq* in hole RC-12-ARI-005
Based on the results of the initial drilling program Candente Management believes there is significant potential to identify additional mineralization both laterally and at depth.
About Candente Copper
Candente Copper is a mineral exploration company engaged in the acquisition, exploration and development of mineral properties. Candente Copper is currently focused on the exploration and development of its Cañariaco Norte copper project and the Cañariaco Sur and Quebrada Verde prospects located within the western Cordillera of the Peruvian Andes in the Ca̱aris District, Province of Ferre̱afe, Department of Lambayeque in Northern Peru.
Michael J. Thicke, P.Geo., VP Exploration and Director, is the Qualified Person as defined by National Instrument 43-101 for the project discussed above. He has reviewed and approved the contents of this release.
*Copper equivalent (Cu Eq) grades include gold and silver values based on 100% metal recoveries and the following metal price assumptions: US$1,200 per troy ounce gold, US$20 per troy ounce silver, and US$2.50 per pound copper.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
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 Copper relies upon litigation protection for forward-looking statements.
On behalf of the Board of Candente Copper Corp.
"Joanne C. Freeze" P.Geo.
CEO, Director & Chair
For further information please contact:
Manager, Investor Relations
mobile: +1 (604) 306-8477
local: + 1 (604) 689-1957 ext 3
Investor Relations, Peru
tel.: (511) 715-2001 ext 107