Recent trenching in the Madeleine zone has exposed a minimum of six gold bearing siliceous structures. The structures occur as a swarm where strikes are predominantly sub-parallel but can vary as much as 80 degrees. Mineralized structures to date have been traced over an area that covers 550 metres in length and 400 metres in width. The mineralization is open on all sides and the exposures appear to be predominantly limited by vegetative cover. Candente is very encouraged by the continuity of the mineralized structures, which have been relatively easy to follow and extend by systematic trenching in covered areas. The Madeleine zone, which was originally discovered by Cominco in 1996, has now been extended in all directions from Cominco's sampling. Gold mineralization has also been found 575 metres northwesterly along strike of the known Madeleine zone and 500 metres to the north-northeast in the Consuelo area. Sampling between these zones has been very limited to date. Future exploration will be focused in these areas to determine whether or not the Madeleine zone in fact covers an area in excess of 1.1 by 1.25 square kilometres.
The structures average 0.3 to 1.0 grams per tonne (g/t) over widths varying from 1 to 5 metres and gold values reach as high as 2.6 g/t over 2.5 metres and 3.1 g/t over 0.25 metres. The gold mineralization is associated with anomalous levels of silver (13 g/t), arsenic (1,295 ppm), antimony (440 ppm), mercury (64,200 ppb), barium (5,490 ppm), lead (3,380 ppm) and in places copper (503 ppm). This geochemical signature is typical of an epithermal precious metal system.
The host rocks are andesitic to rhyolitic tuffs, volcanic breccias and quartz-feldspar porphyry belonging to the Calipuy Formation, which also host the Yanacocha and Pierina gold deposits. Alteration of the host rocks includes silicification, brecciation, veins, stockwork, hematitic quartz, limonite and extensive argillic alteration.
The Picota property covers 3,200 hectares and is situated within the "Yanacocha External Caldera System", which hosts several economic deposits within 50 kilometres of Yanacocha, in the Western Andes of Peru. Yanacocha is one of the largest heap leachable gold mines in the world with production costs of $88 per ounce and reserves of 35 million ounces of gold. The Picota Property held 100% directly by Candente, is subject to a 0.75% NSR payable to Cominco who provided data on the area to Candente.
The Picota Property is accessible by road and is bound by two other discoveries currently under exploration by Yanacocha's owner, Buenaventura. The La Zanja property, which borders Picota to the west, is a high sulfidation epithermal deposit amenable to open pit mining and heap leaching. The gold resource at La Zanja is expected to reach one million ounces this year. Resources at Tantahuatay, whose western border lies two kilometres east of Picota, are estimated at 25 million tonnes grading 0.80 grams per tonne gold (heap leachable) and 350 million tonnes grading 0.8% copper and 0.3 grams per tonne gold.
Candente Resource Corp. has been exploring in Peru since 1997 and holds interests in epithermal gold, porphyry copper-gold and volcanogenic massive sulphide prospects. The company's founders have extensive exploration experience in Peru and have been involved in some of Peru's major discoveries. A comprehensive overview and property portfolio for Candente is available on the web at www.candente.com. For more information on our properties and our company, please contact Chris Verrico at (604) 689-1957 or at firstname.lastname@example.org.
ON BEHALF OF THE BOARD OF DIRECTORS
P. Geo. President and CEO
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