Release No. 30
Candente Resource Corp. (Candente) is pleased to provide the results of a recent evaluation of geophysical data by independent geophysical consultant, J.L. LeBel, P. Eng., on the Columbia Property located in Central Peru.
Highlights
- Three drill targets with potential for bulk tonnage gold and gold-copper deposits have been identified
- Targets are extensive geophysical (Induced Polarization - IP) anomalies, with associated gold or gold-copper in surface geochemistry
- The most intense target coincides with a one kilometre (km) square area identified by anomalous gold values (to 671 ppb) in C horizon soils (scree). This target could be a highly altered and mineralized volcanic-sedimentary unit, with bulk tonnage potential
- A second target is hidden, appearing to lie 25 to 50 metres below the surface, and improves with depth. Gold-copper geochemical anomalies occur above this target in volcanic-sedimentary rocks
- The third target coincides with copper-gold geochemical anomalies in intrusive rocks and covers a minimum length of 800 metres and width of 650 metres
- The significance of the three drill targets is enhanced by the fact that previously identified copper and gold mineralization extending over 300 metres by one km (Santa Rosa Cu-Au) occurs between two of the IP targets and has no significant geophysical or gold geochemical expression
- Additional targets have been delineated by several geochemically anomalous zones occurring in areas without geophysical coverage
- The Company will fund exploration on the Columbia Property by carrying out a Non Brokered Private Placement (details below)
Property Summary - High Grade Gold and Geophysical Targets
A large gold anomaly with values of up to 671 ppb in C horizon soils (scree) extends over one (1) square km and coincides with the most intense IP (Western) anomaly which is 1.2 km in length and is open. This IP anomaly lies approximately 500 metres west of the Santa Rosa Cu-Au Zone. This (Western) target could be a highly altered, non-magnetic, sulphide-mineralized volcanic-sedimentary unit with bulk tonnage potential. The unit is interpreted to be a minimum of 50 metres in thickness and could well exceed 100 metres in thickness. Trenching and pitting will be carried out to expose the top of this target but it could be hidden by up to 10 metres of cover. This target has top priority for drilling.
In the Santa Rosa Zone, copper and gold mineralization is exposed in trenches and outcrop over 10 to 300 metre widths and a one km strike length. Rock chip samples include values of up to 3.5 gpt gold and 3.5% copper in outcrop and consecutive trench samples include 0.42 gpt gold and 1.2% copper over a 25 metre width. Although extensively mineralized, this zone has no significant geophysical or gold-in-soil signature.
The Central (third) IP anomaly lies 500 metres east of Santa Rosa. This anomaly is strongest at the southern end of the survey extents and is open to the south. Geochemical sampling in this area is limited but some anomalous copper and gold values are associated with the anomaly. The IP signature indicates this could also be a bulk tonnage mineralized body. Additional geochemical sampling and trenching will be carried out prior to drilling.
The Eastern (second) IP anomaly lies one kilometre north-east of Santa Rosa and has anomalous copper and gold values occurring in scree-soils above it. This is a deeper target, which improves with depth. The top of the target averages 25 to 50 metres beneath the surface. This is also a very favourable drill target for a bulk tonnage style mineralized body, however, more IP coverage is required to determine the lateral extent of this anomaly.
Numerous gold anomalies (up to 473 ppb) in C horizon scree-soils occur over an area 2.5 by 3 km at least one kilometre east of the Santa Rosa zone. Most of this area is beyond the present geophysical coverage. The next phase of exploration in this area will include trenching and possibly additional IP surveys.
A Half Million Already Invested
US$500,000 was previously spent on stream sediment sampling, prospecting, geological mapping, rock chip and soil sampling, geophysical surveys, trenching and road construction. The IP targets discussed above are the result of a re-interpretation by J.L. LeBel, P. Eng., of IP and Magnetics surveys previously carried out on the property by Val D'or Geofisica (Peru) S.A.
Financing
Subject to regulatory approval, the Company has agreed to a Non Brokered Private Placement in order to raise proceeds of $300,000 by issuing 2,000,000 units at $0.15 per unit. Each unit will comprise one share and one non-transferable share purchase warrant. One non-transferable share purchase warrant allows the placee to purchase one previously un-issued share of the Company at a price of $0.20 per Share during the first twelve months and $0.25 per Share during the second twelve months. The funds will be used for general working capital and exploration programs on the Company's gold properties in Peru. A North American fund, The Prudent Bear has agreed to purchase US$100,000 (Cdn$157,000) of the units. Upon completion of the Private Placement, The Prudent Bear, in addition to previous investments, will own in excess of 10% of the total issued and outstanding shares of the Company.
Candente Summary
Candente is an exploration company with world class projects in Peru. The Company now has 9.24 million shares out and is fully diluted at just under 13 million shares. Current exploration focus is being concentrated on delineating gold drill targets on the Columbia gold-copper and the El Tigre epithermal gold properties.
For more information visit www.candente.com and call us at (604) 689-1957 or e-mail to info@candente.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Joanne C. Freeze"
Joanne Freeze, P. Geo., President & CEO
Candente Resource Corp.
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.