The Cañariaco property is in Northern Peru and lies 25 kilometres northwest of the La Granja deposit recently purchased by Billiton from Cambior. The property hosts three porphyry copper targets of which the most attractive at this time, Cañariaco Norte, contains a potentially heap leachable chalcocite enrichment zone. Copper mineralization ranging from 0.23% to 1.25% was encountered over widths varying from 200 to greater than 300 metres in 10 of the 11 holes drilled. Higher grade copper mineralization averaging greater than 0.6% occurs within an enriched zone which is greater than 200 metres thick in places. A potential tonnage in the order of magnitude of 100 million tonnes or more is based only on the three most recently drilled holes where the enriched zone is well documented. A leached cap averaging 20 to 40 metres thick above the enriched zone indicates the potential for a very low strip ratio. As several holes stopped in mineralization, the total thickness of the primary zone (underlying the enriched zone) has not yet been determined.
Preliminary metallurgical (sequential leach) tests carried out by Geomet S.A. of Chile, indicate recoveries may be in the 85 to 90% range for the enriched zone and 50-55% in the primary zone.
Knight Piesold Ltd. conducted a site visit from March 28th to 30th to evaluate the property for developing an SX-EW mine infrastructure. Suitable sites for heap leach pads and waste stockpiles were located relatively proximal to (within 3 to 5 km of) Cañariaco Norte where topography is gently undulating and vegetation is semi-arid (grasslands with no trees).
Two sites identified for potential heap leach pads have sufficient area to provide the required storage capacity and have moderate topography, which should minimize construction volumes. Two other sites appear to be more suitable for the location of waste stockpiles as these sites are slightly smaller in size and topography is more severe, but these areas should require minimal construction work for the development of these sites into waste stockpiles. See website www.candente.com for photographs of these sites.
The next phase of exploration to be carried out on the property will include drilling and metallurgical testing.
Candente Resource Corp. www.candente.com is actively exploring and holds interests in epithermal gold, disseminated copper-gold and VMS prospects in Peru. For more information contact us at (604) 689-1957 or firstname.lastname@example.org.
ON BEHALF OF THE BOARDS OF DIRECTORS
Joanne Freeze, P. Geo., President & CEO
Candente Resource Corp.