Three zones of anomalous gold occur within an area extending two kilometres by one kilometre. Alteration includes silicification, brecciation, veins, stockwork, hematitic quartz, limonite and extensive argillic alteration. In the Madeleine area, Cominco reported gold mineralization of up to 0.5, 1.2 and 1.8 grams/tonne over widths of up to 10 metres. Recent work by Candente shows that the gold mineralization extends at least 200 metres to the southeast of Cominco's prior work. All five samples collected by Candente within this new zone are anomalous in gold varying from 0.15 to 1.11 grams per tonne over six to ten square metres. The mineralization occurs in volcanic rocks, which have been altered by varying degrees of silicification and argillic alteration and a hydrothermal breccia. Anomalous levels of arsenic, antimony, mercury, silver and barium, indicative of an epithermal system, also occur with this mineralization.
Additional exploration is in progress on the Picota Property to follow-up other anomalous gold zones previously found including stream sediment anomalies of up to 298 ppb gold. Cominco also identified a porphyry copper-gold target elsewhere on the property.
The Picota property covers 3,200 hectares and is situated within the "Yanacocha External Caldera System", within 50 kilometres of the Yanacocha deposits, in the Western Andes of Peru. Yanacocha is one of the largest heap leachable gold mines in the world with production costs of $100 to $125 per ounce and reserves of 35 million ounces of gold. Due to the success of Yanacocha and other mines in this area the people of the region are pro-mining and well trained in mining related skills.
The Picota Property is 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 owners 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. Exploration expenditures since 1996 have reached 3.6 million US dollars and recent underground exploration shows an increase in grades by 25% to 30% from drilling and surface trenching. A 172 metre tunnel section averages 1.95 grams per tonne (g/t) gold and a 40 metre chimney averages 2.3 g/t gold. 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 five epithermal gold prospects, two porphyry copper-gold prospects and three 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 Resource Corp. is available on the web at www.candente.com. For more information on our properties and their potential to place Candente Resource Corp. on the leading edge for resource development in this prolific region, please contact Chris Verrico at (604) 689-1957 or at email@example.com.
On Behalf Of The Board Of Directors
Joanne Freeze P. Geo.
President and CEO
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.