As previously reported the El Tigre property is interpreted to host a low-sulfidation epithermal system where gold mineralization has been found over an area extending two kilometres by one kilometre. The gold occurs in quartz veins and veinlets crosscutting a stratiform sequence of volcanic and sedimentary rocks. Of 44 samples collected in November, 18 contain in excess of 0.5 grams per tonne (gpt) gold, 12 assayed over 1.0 gpt and 5 samples carry between 3.5 and 9.5 gpt. This style of mineralization is typical of low sulfidation epithermal gold mines such as El Penon in Chile where gold is produced at a cost of less than $45 per ounce. Gold mineralization (0.1 to 0.5 gpt) also occurs with pervasive ateration in the coarser grained volcanoclastic and sedimentary wall rocks. This style of mineralization is similar to that occurring at the Pierina and Yanacocha mines where gold is produced for less than $45 and $88 per ounce, respectively.
The detailed geological re-interpretation previously reported is still is in progress but has increased substantially the understanding of the geological environment and mineralizing controls. A more detailed geological update will be posted on the company Website over the next few weeks but the most significant results are discussed below.
1. A large granodioritic to dacitic intrusive (QFP) unit forms a sill (a flat lying body), which covers and hides much of the area where the gold mineralization is occurring. The potential of the area masked by the sill can only be determined by drilling.
2. It has been determined that the gold mineralization is most probably caused by a hydrothermal system related to the onset of rhyolitic volcanism. Both are believed to be controlled in space by faults, which should be traceable by airphoto interpretations and geophysical surveys. The airphoto and geophysical interpretive work should assist greatly in the identification of drill targets.
The Huaypian Property, a gold prospect also interpreted as a low-sulfidation epithermal target was the first prospective gold target acquired by the Company and was the main exploration focus described under Use of Proceeds in the Prospectus dated February 29th, 2000. Approximately one half of the Phase I program (geological mapping, prospecting, stream sediment sampling and rock chip sampling) recommended, was carried out between July and October 2000 and a total of US$30,000 (Cdn$46,000) of the US$75,000 (Cdn$113,000) recommended was spent on the property. Results to date are very encouraging in that two creeks 1 km apart have been found to carry anomalous levels of gold, from 28 to 1000 ppb (0.1 to 1.0 grams per tonne), in stream sediment samples. Although the results to date on the Huaypian Property are very encouraging and warrant further exploration, Candente management and Dr. Peter Lewis, independent geological consultant, consider the El Tigre property to be a much stronger exploration target for the Company at this time. Dr. Lewis has recommended, and the Company has agreed, to change the use of the remaining funds allocated in the Use of Proceeds in the Prospectus dated February 29th, 2000, from Phase I on the Huaypian Property to exploration on the El Tigre property.
Candente Resource Corp. http://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 at mailto:email@example.com
ON BEHALF OF THE BOARDS OF DIRECTORS
"Joanne Freeze", P. Geo., President & CEO
Candente Resource Corp.
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